How to Find a Business Co-Signer for a Loan
Co-signing for a business loan is a huge responsibility. If the business defaults on the loan, the co-signer becomes responsible for paying the entire remaining balance. Banks often require co-signers or some form of collateral for business loans. That's true even if the business is formed as a limited liability company, which separates the assets and liabilities of the company from those of the owners. Banks get around that by requiring one of the owners or someone else to personally guarantee the loan.
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Instructions
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Apply for the business loan and get the terms in writing. A responsible co-signer will want to fully review the loan before agreeing to co-sign.
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Approach all current partners in the business. Or guarantee the loan yourself. The owner, the owner's spouse, partners and their spouses often act as co-signers on business loans.
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Network within your social and professional circles for people who might qualify as investors in the business if there is not a qualified co-signer in your present ownership circle. Offer part ownership in the company to a new investor who co-signs the business loan. The co-signer should have impeccable credit and fully understand the risks.
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Advertise in other places for a potential investor/co-signer if you are still looking. Place ads on free online classified sites, and place notes on community bulletin boards at coffee shops and grocery stores.
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Ask other friends and family members if you are still having problems finding a co-signer. Again, offer part ownership in the business in consideration of the risks in co-signing the loan.
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