When someone sets up an LLC, then try to get business lines of credit, does his personal credit score matter?

September 22, 2009 4 Comments


Yes, the owner[s] of this LLC company must establish a line of credit for the company when it first starts out. But after that, if the company can show that its credit is good through payments on accounts, then you can use that business for the line of credit.

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4 Responses to “When someone sets up an LLC, then try to get business lines of credit, does his personal credit score matter?”

  1. rhsaunders September 22, 2009 at 8:01 pm

    Yes.
    References :

  2. stepboltower September 22, 2009 at 8:19 pm

    Yes, the owner[s] of this LLC company must establish a line of credit for the company when it first starts out. But after that, if the company can show that its credit is good through payments on accounts, then you can use that business for the line of credit.
    References :
    Personal experience of working for a LLC company

  3. General Custer September 22, 2009 at 8:29 pm

    yes, until the llc developes it’s own assets and credit history
    References :

  4. swy3388 September 22, 2009 at 8:36 pm

    In theory, LLC is a separate entity and should be able to establish its own line of credit, however when it’s a brand new or fairly young company, the creditors will ask the principals of the company to provide personal guarantee, which means the company principals agree to pay the debt out of personal asset if the company fails to do so, therefore the personal credit score does matter.
    References :