I have bad credit, but would like to use the 50% ownership i have in a club to get a loan, is it possible.?

Question

As I said in the post, I own a 50% stake in a nightclub and would like to raise some capital to put back into the club.  I have terrible credit but would like to use some of the equity in the club to secure the loan. 

 Is it possible?  The value of my half is in the 1 million dolllar range but only want 500K or so. Any ideas or tips..

thx

ibu guru · Accepted Answer

You and your partner will have to apply for a business loan with the business assets as collateral.  Business loans are nearly impossible to come by these days.  Small businesses are collapsing at rates even higher than those of the Depression of the 1930s these days.  Even if you both have excellent credit, assets, and personal guarantees for the loan, it will be difficult - if not impossible - to get such a loan these days.  

You will have to fund improvements out of business income.  You should have been saving some of the income towards capital improvements, refurbishments, etc, all along.  And it really is inexcusable to have bad credit when you have a biz still worth that kind of money these days.  Bad money management shows in both your personal and professional track records.  It will come back to bite you in the you-know.  It already is!

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I have bad credit, but would like to use the 50% ownership i have in a club to get a loan, is it possible.?