Company Line Of Credit

I have a company line of credit and a company credit card. The business was terrible and i am forced to go out of business. I am the personal guarantor of the debts. What would happen to those debts and how would it effect my personal finances if my business goes under? Thank you for you help in advance.
It is an S-Corporation and the debt never shows up on my personal credit report because it is considered company debt.

You say you are "personal guarantor." Enough said. They are then your personal debts.

2009-01-16 06:44:59 by Sung C

I have seen a "seasoned company" for sale that has an A1 Dun and Bradstreet rating. How much credit line and what type of terms usually can a company with this credit rating qualify for? The seller states that it could probably qualify for 1mm with an A1 rating.

The rating is a factor, but there are many other factors such as assets, liabilities (including the aging of the AR/AP). You can get an appraiser to value your in/tangible assets. But the biggest factors are cash flow, EBITDA margins, and total revenue. Assuming your business is doing 1MM in EBITDA on 20MM revenue, you can secure for maybe 2.5 times that amount. It all depends on the dynamics. Also, if working capital is a crucial need, you can hire an investment bank to find you a mezanine lender that specializes in those deals. They usually give higher multiples on working cap if your business is on the up and up. Good luck.

2007-08-18 12:28:33 by Dax

Price: $9.95 $9.95

I have heard that some companies giving unchecked credit line
to buy from them only. Also I have heard that many of the on
line offers of this kind are scam, Any one can recommend
a reliable shopping company that he\she has good experience
with ?

I've heard about those too! I just can't find the site

2009-03-09 16:23:03 by Dror

Price: $19.99

This is the question for economics. Lamar just received notice his credit card company is increasing his credit card company by 1,000 dollars. Lamar is very happy about that. Comment on Lamars statement.

Thanks.

Credit Line Increases can be good and bad, and you asked for the pros and cons.

Pro-

1. Higher Limit, lowers over all utilization percentage which raises your score.

2. More money in the case of an emergency.

3. Can make banks with higher limits trust you more because another bank has already takin the risk.

Con:

1. Other current creditors that he does business with may decrease his limit, or close the account in fear of having to much credit extended. (which has potential of decreasing the age of his report - a score factor)

2. Most credit line increases come at the price of an inquiry being placed on your credit report.

I would also like to note that a couple of the answers on here are extremely innaccurate....

If a credit card company lowers your limit below your balance, they legally cannot charge you an over the limit fee, and anything over the limit stays at the current APR at the time of the decrease.

And the problem in todays economy isnt Credit Card Debt....
more like irresponsible rela estate agents, brokers, and lenders.

2009-03-15 19:12:00 by The Saints

i've got NO credit history,and work only odd jobs is there a credit card company that will trust people with a small begining line. without a checking or savings account.

Try Capital One.....They give them away like candy.

2006-09-24 04:00:45 by blacksheep0685