Is there small business financing available that will not effect you personally if your biz if it goes under?

I want to open an ice cream shop in my area but I do not want to put my house up for collateral in a loan or if the business goes bankrupt for the lender to be able to come after my personal assetts. Is there financing available? Or anyone know of grants to open a shop.

Slim to none.

If you open your business as an LLC (limited liability corporation), you can get a loan on the LLC, and then if the business goes under they can't tap your personal assets. This is why an LLC exists.

However, you'll need a solid business plan and a willingness to put some of your own assets into the business.

We are often asked why it is important to build a strong business image and credit. There are two answers to that question. The first and the most obvious answer is that it is important to build strong business credit in order to Secure Business Financing. However, not all businesses require external financing; often entrepreneurs will refer to family and friends for startup capital. This is where the second reason, Emergency Financing takes precedence.

If your business is experiencing strong growth such as a need to expand warehouse space, inventory, or work force, and the financing of such operation is beyond that which is available from friends and family, a strong business image and a strong business credit profile can aide in securing financing with lower rates and quicker approval times.


Begin your search by typing "strong business credit" (just like that in quotes) into google or yahoo. That should give you a head start on the companies that specialize in this field.



Ilya Bodner
Small Business Owner
Initial Underwriting Group