What percentage if any should I give a co-signer for a business loan?
flatop83 asked:
I am going to open a new liquor store and need a co-signer to be able to get the entire amount needed for the loan. The business will be in my name and I will work 60 hours a week with 2 other part-time workers. I do have a couple of people interested in co-signing. I am wondering what I should give them for co-signing a 7 year loan with me. Percentage of gross profit?…net profit?…flat amount?
I am going to open a new liquor store and need a co-signer to be able to get the entire amount needed for the loan. The business will be in my name and I will work 60 hours a week with 2 other part-time workers. I do have a couple of people interested in co-signing. I am wondering what I should give them for co-signing a 7 year loan with me. Percentage of gross profit?…net profit?…flat amount?
August 19, 2008
• Tags: Co Signer, Gross Profit, Liquor Store, Loan Business, People • Posted in: Personal Finance
2 Responses to “What percentage if any should I give a co-signer for a business loan?”
You should probably give them a percentage ownership in the business. And rather than co-signing the loan you should just ask for a cash investment you would never have to pay back unless you buy them out.
“if any” is the wrong type of thinking to have, I feel that if it wasnt for the co-signer you wouldnt have the liquor store. They trust you enough to sign a loan with you using their credit so you 2 should come together and figure out what percentage is reasonable to that person