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Old 08-28-2017, 03:31 PM   #21
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I would not co-sign any loan or enter any partnerships. I like to keep my life simple and my brain as clear as possible. Intertwining other people with my finances causes stress for me.
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Old 08-28-2017, 03:41 PM   #22
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I would not co-sign any loan or enter any partnerships. I like to keep my life simple and my brain as clear as possible. Intertwining other people with my finances causes stress for me.
+1

I have a solid no co-sign, no loan policy.
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Old 08-28-2017, 03:46 PM   #23
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I read the first line of your post - and my answer is NO!

I don't make loans and I am not a bank.

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Old 08-28-2017, 05:04 PM   #24
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... They are working long hours every day (including weekends) trying to build the business and have a sizable amount of inventory in their warehouse. Their problem seems to be not having enough of a sales force to go out and sign up retailers to carry their products. ...
What this tells me is that they don't know how to run a business. I can't tell you how many times, as a SCORE business mentor, I have explained to a client that all the inward-facing stuff in the world, like building infrastructure and buying inventory, is completely irrelevant unless and until they sell something. It's no surprise that they need money if they have purchased "sizable" inventory without having sales.

Also, wholesale distribution unless for a very special niche, is probably not a good choice for a startup. Inventories are large and turn fairly slowly. pricing is brutal, and often they are trying to penetrate an old boy network. We often ask clients: "What is your unique selling proposition? Why would anyone buy from you?" You could ask them that.

The company probably needs new leadership if it is to survive.
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Old 08-28-2017, 05:20 PM   #25
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Ask if any of the principals if anyone has taken the Dale Carnegie Sales Training course.
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Old 08-28-2017, 06:09 PM   #26
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Give them the loan, but have the owner of the company add you to the title on his personal home - Assuming the home has way more than $35K in equity.

If the owner will not do that, it is too risky for him, and you know it is too risky for you too.
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Old 08-28-2017, 06:14 PM   #27
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.... under what circumstances, specifically, you'd be willing to co-sign such a loan. ?
None
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Old 08-28-2017, 06:55 PM   #28
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Lol, my mom wouldn't even consign on my college apartment. Had to pay cash up front! (Thank goodness it was only $2500)
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Old 08-28-2017, 06:56 PM   #29
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Run away screaming into the night from any thought of co-signing this loan.
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Old 08-28-2017, 06:58 PM   #30
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Run away screaming into the night from any thought of co-signing this loan.
OMG too funny. I pictured someone running thru the streets screaming waving their arms hahahah.
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Old 08-28-2017, 07:23 PM   #31
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Some of the wisest men in the ancient world contributed to the book of Proverbs in the Bible.

Proverbs 6:1-5 has much to say about putting up security (co-signing) for strangers-none of it is good.
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Old 08-28-2017, 07:42 PM   #32
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OMG too funny. I pictured someone running thru the streets screaming waving their arms hahahah.
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Old 08-28-2017, 07:53 PM   #33
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Have they tried Shark Tank ?
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Old 08-28-2017, 07:56 PM   #34
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I was just thinking.... I have a BIL whose brother made a loan to a company that he thought was OK... but he had it structured that if not paid back he got 100% of the company...

Well, loan was not paid back.... he took control and got it up and running correctly and now is a multi-millionaire.... he was just a supervisor at a chemical plant before, so this made him....


So, if you think that it can be successful with a bit of work and you want to do that work, do a loan and either get paid back with a high rate or take over the company....
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Old 08-28-2017, 08:25 PM   #35
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I was just thinking.... I have a BIL whose brother made a loan to a company that he thought was OK... but he had it structured that if not paid back he got 100% of the company...

Well, loan was not paid back.... he took control and got it up and running correctly and now is a multi-millionaire.... he was just a supervisor at a chemical plant before, so this made him....


So, if you think that it can be successful with a bit of work and you want to do that work, do a loan and either get paid back with a high rate or take over the company....
These things never happened to me. All the people I know that wanted me to help them out were bad risks, and or dead beats.
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Old 08-28-2017, 08:59 PM   #36
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One advantage of going the venture capital route is that they teach their entrepreneurs how to run a technology business. Yes they receive a % of the business in return for their investment and guidance but most without that would fail.
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Old 08-28-2017, 09:44 PM   #37
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+1



I have a solid no co-sign, no loan policy.


+1
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Old 08-28-2017, 11:49 PM   #38
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Basically how I look at co-signing a loan, is consider it a gift. Like you will never get it back if you have to pay it back because they didn't. If you did get it back, you would be lucky.

We don't co sign for anything. Co signed for kids cars way back when and that is it.

Good luck with the IT work though.
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Old 08-29-2017, 07:13 AM   #39
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No No and No.

If I knew them well and truly believed in the high chance for an upside, I would make the loan myself, but never co-sign.

Co-signing isn't even as good a risk as a gift - a gift I know I'm at zero. A co-sign means I could have credit damage before I know what's happening. Can't write a check to make that go away.
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Old 08-29-2017, 07:20 AM   #40
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NO!
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