[Olah54]

I have a merchant that has a successful business need funding 300-500k every few months for the next few years.

Here's the catch it is a corporation with several shareholders and no one is the decision maker nor does anyone want to be personally responsible for the debit?

What can be done here?


Thank you

[Kevin Henry-Seacoast]

I have a merchant that has a successful business need funding 300-500k every few months for the next few years.

Here's the catch it is a corporation with several shareholders and no one is the decision maker nor does anyone want to be personally responsible for the debit?

What can be done here?


Thank you

Olah54- You might want to get a copy of their articles of incorporation and operating agreement.

[MCA]

As Kevin mentioned that should outline who has signatory authority, also a simple board/corporate resolution giving signatory authority could also work in addition to the operating agreement

[Jamesf]

I have a merchant that has a successful business need funding 300-500k every few months for the next few years.

Here's the catch it is a corporation with several shareholders and no one is the decision maker nor does anyone want to be personally responsible for the debit?

What can be done here?


Thank you

Depends on financials of course But also in your specific case using corporate credit and banks. It’s still brokerable though. When do they need it by?
Do you have access to someone with signatory power?
You can find an alternative lender that will consider this but they can probably get a much better product outside of what’s normally offered here.

[Jstarr]

Articles wont matter, Operating agreements, Bylaws and or corp resolution supersede the Articles, they could also draft a shareholder agreement showing percentages, signed and notarized.

this will hold up in any court, we do them quite often for real estate closings.

** On a side note - Anyone can for a corporation and list themselves as officer, Ambr, Mgr etc and have nothing to do with said corporation - This is where the above docs come into play.

[Jamesf]

Articles wont matter, Operating agreements, Bylaws and or corp resolution supersede the Articles, they could also draft a shareholder agreement showing percentages, signed and notarized.

this will hold up in any court, we do them quite often for real estate closings.

** On a side note - Anyone can for a corporation and list themselves as officer, Ambr, Mgr etc and have nothing to do with said corporation - This is where the above docs come into play.

And that would be how you keep a guarantee on the corp in this case? Or that is parsing out the guarantee percentage based among the shareholders?
Thanks

[Jstarr]

So, They need the funds - but they don't want to pay it back.... You gotta love this.


"Here's the catch it is a corporation with several shareholders and no one is the decision maker nor does anyone want to be personally responsible for the debit?"

What can be done here?

[ryan $]

No One is The Dec Maker.

The Board has to Decide.

And someone Needs to SIGN the contracts. How Can No One be Personally Responsible? What are you going to do? Have The COMPANY SIGN? No it has to be a person, and the Corporate Resolution will grant the power to the signer on behalf of the corp.

[Olah54]

Great thank you for all the info.


Now who funds these deal?

[WestCoastFunding]

Great thank you for all the info.


Now who funds these deal?

Don’t know if they still do, but I did one with Rapid years ago.

[omegafund]

I have a merchant that has a successful business need funding 300-500k every few months for the next few years.

Here's the catch it is a corporation with several shareholders and no one is the decision maker nor does anyone want to be personally responsible for the debit?

What can be done here?


Thank you

Use CAN CAP. THey will do it with 5% ownership signing

[ridextreme]

I have a merchant that has a successful business

need funding 300-500k every few months for the next few years.

They need a half a million dollars every few months, but they're "successful".

[Olah54]

Thank you.

Quick question -

Why do we need to run personal credit and have a signer if the advance is not personally guaranteed? Or is it personally guaranteed?



I get asked this question all the time. Any input is appreciated. Thank you

[ridextreme]

Thank you.

Quick question -

Why do we need to run personal credit and have a signer if the advance is not personally guaranteed? I guess what I am saying/asking is that there are multiple shareholders and non want to be in a predicament of personally guaranteeing the debit.

By asking them for SS #'s, credit checks and 51% ownership on app - sounds a lot like personally guaranteeing.

I have identified the decision maker and they do not want to run credit as it is not personally guaranteed.


I get asked this question all the time. Any input is appreciated. Thank you

So we should just wire them the money on a verbal promise to pay it back?

Welcome to the industry

[Jamesf]

Thank you.

Quick question -

Why do we need to run personal credit and have a signer if the advance is not personally guaranteed? Or is it personally guaranteed?



I get asked this question all the time. Any input is appreciated. Thank you

Yes they are personally guaranteed

[ryan $]

Yes they are personally guaranteed

Personally Guaranteed of "Performance"

[BillionzandBillionz]

Thank you.

Quick question -

Why do we need to run personal credit and have a signer if the advance is not personally guaranteed? Or is it personally guaranteed?



I get asked this question all the time. Any input is appreciated. Thank you

ummm because they are giving these people 300k-500k lol are you serious ? How much would you give to a complete stranger, without any due diligence at all?