How do I Obtain a Business Loan Cosigner?
Co-signers are individuals who agree to be held responsible for another individual's debt. Of course, this can be a tough sell. Parents often co-sign loans for their children to attend college or post-graduate programs. In some cases, family members will co-sign for a struggling family member. However, cosigning a business loan can be quite risky as the loan amounts are usually much larger. Therefore it can be a challenge finding a cosigner for a business loan. It is possible, however.
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Instructions
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Collect all documents relating to your proposed business. This will include your business plan and any start-up capital statements, as well as your personal bank statements. In addition, you should put together a list of your personal assets as this will help strengthen your argument that you are a sound credit risk.
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Approach potential business partners first. Many people will be unwilling to sign on as a cosigner if they have nothing invested in the business. However, if you partner with another interested businessperson, she will likely to take some risk in the investment.
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Ask business colleagues unassociated with the potential business. Those who have experience in the business world will recognize a sound credit risk when they see one. You must be prepared, however, to give something up for the cosigner--like a percentage of the profits in the business.
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Go to your family last. Mixing family, money and business is notoriously dangerous. However, if you have a strong business strategy, good capital and a financial safety net, you may be able to persuade a family member with strong credit to be a cosigner.
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References
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