Co-signing a loan

[Senator]

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.

 

[Blue Collar Guy]

.... under what circumstances, specifically, you'd be willing to co-sign such a loan. ?

None

 

[pj.mask]

Lol, my mom wouldn't even consign on my college apartment. Had to pay cash up front! (Thank goodness it was only $2500)

 

[jollystomper]

Run away screaming into the night from any thought of co-signing this loan.

 

[Blue Collar Guy]

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.

 

[brucethebroker]

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.

 

[travelover]

OMG too funny. I pictured someone running thru the streets screaming waving their arms hahahah.

 

[Moemg]

Have they tried Shark Tank ?

 

[Texas Proud]

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....

 

[Blue Collar Guy]

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.

 

[Brat]

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.

 

[Scuba]

+1



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

+1

 

[kimcdougc]

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.

 

[Aerides]

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.

 

[brett]

NO!

 

[imokurok]

+1



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

+1
What he said.
Underlined, in bold font, in italics and quotation marks.

 

[Sojourner]

Run away screaming into the night from any thought of co-signing this loan.

Very funny... and sound advice, to boot!

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.

Yes, I've read several articles that mention credit damage as a huge risk to anyone co-signing a loan. I think it could be mitigated by keeping very careful track of the loan repayments and making sure they were always paid on time, but... do I really want to sign up for an ongoing hassle like that? One article I read said something like "The thing about being a co-signer is, the loan is effectively yours. You're taking on most of the risk while the principle borrower is receiving all the benefits."

The more I read about this, and the more feedback I get from you wonderful folks, the less I like the idea. I'm definitely not co-signing any loans for these people, regardless of how I feel about them personally or how much I'd like to see their business succeed.

Thanks again for all the great comments and advice!

 

[canuck5]

Sounds like they need a ready made salesforce to get out there and move some product.

https://www.manaonline.org/

 

[OldShooter]

Sounds like they need a ready made salesforce to get out there and move some product.

https://www.manaonline.org/

Ask if any of the principals if anyone has taken the Dale Carnegie Sales Training course.

Sorry. The old rule applies: To every complex problem there is a simple answer, usually wrong.

What they need is a sales culture, created and nurtured by a sales-oriented top manager or company president. A weekend charm school won't do it, and there is nothing that requires more selling effort than a bunch of independent reps.

 

[kcowan]

I would also not do any unpaid work for them. Your time is worth big bucks. Don't give it away no matter how much you like these guys!

 

[RenoJay]

The only loan I'll ever consider co-signing is when my kiddos buy their first home(s). Aside from that, in G-d we trust; everyone else pays cash.

 

[Sunset]

......
Yes, I've read several articles that mention credit damage as a huge risk to anyone co-signing a loan. I think it could be mitigated by keeping very careful track of the loan repayments and making sure they were always paid on time, .....

Problem is the only way to make sure the loan is paid on time is for you to pay it, what else would you do if they claim no cash on payment day, other than pay it yourself.

Co-signing a loan is almost always a bad bad idea.

 

[MarieIG]

Under what circumstances would I co-sign a loan (under those circumstances) - it would have to involve threats upon my person with a lethal weapon. Seriously, they can give you a stake in the ownership for your services, but they are asking WAY too much of you - co-signing a loan. NO, NO, NO!!!