Question by Fatty: Does a business loan go on a personal credit report?
On any type of business financing, if I were to take out a loan in my name for the business (whether an aqusition loan or SBA or whatever) would it go on my credit report? This is assuming that I dont take the loan out under my business name, its on me.
Best answer:
Answer by Concerned F
A business lent that is guaranteed by you or that is unsecured but in your call will likely go on your credit report. Even if you put it in the business’s name (as long as it is not a corporation, LLC, or LLP where you are just a limited partner not the general partner), it will go on your credit report. Only corporations, LLC’s, and LLPs where you are not the general partner are separate business entities.If you are the general partner of a LLP, it will also go on your credit report (I presume so). I’d check that over with an attorney if you went through the steps of a GP, LLP, LLC, C Corporation, or S Corporation with an attorney.Off course, you have to remember that some lenders don’t report your information to a credit bureau unless the information is negative. I think that as long as it is not a separate business entity that it goes on your credit report, which is why a lot of people prefer to have the business as a S corporation. However, many lenders will require that you personally guarantee the loan even under the S Corporation umbrella due to the inability to find financing. A C Corporation (with its double taxation) is the best way to obtain equity financing.
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