[Big Mac]

I'm considering best strategies for procuring loan money for my company. At this stage of the game, my company isn't yet a year old so I'll probably have to go the personal loan/personal guarantee route. I have already thought that part over and realize the risks involved. The thing I'm wondering about is, I just recently received pre-approved personal loan offers from two different banks, and I'm trying to decide if I should split the loan amount I have in mind between the two or just go with one for the full amount. I'm torn between the options because while it seems like it would be a good idea to split it between the two banks, on the other hand I'm thinking that if the second bank saw the loan I just took out with the first, it could raise a red flag. Suggestions?

[medicineman]

You didn't offer much info for such a serious question. There is no one-size-fits-all answer at any rate. Keeping in mind that *most* businesses fail within 5 years, incurring debt is a monumental decision. Do you have an accountant? What is the type of business? What is the debt needed for? Debt can be structured in many ways depending on how your company is organized. Your accountant is the best resource for that info. Although federal law is the same throughout the land, state laws vary. Have you contacted your suppliers for terms? Overall, I would consider using just one institution for lending purposes. You won't offend one bank by denying them. This is, after all, a business decision, not a personal one.

[mitchell_pgh]

I don't know your particulars, but I would go with one bank if you can. It's easier to micromanage (checking every little transition, rate, etc. etc.) one account as compared to two.

[macintologist]

Prosper: The online marketplace for people-to-people lending - Prosper

[Gossamer]

Countdown to RailRoader in 3...2...1...

[Person Man]

Originally Posted by Gossamer 

Countdown to RailRoader in 3...2...1...

"All debt is bad, regardless of what you use it for."

Oops. That's SpliffDaddy

[Dakar²]

Nope, they were ok with business debt, because it's an investment.

[PSXBatou]

Before you put yourself too much in debt i would look around for Federal and Local grants. I am in the process of starting up a business (upscale bar/venue) in the W LA area and have significantly reduced the amount of loans and cash i will have to output by applying for and being given both Federal and Local/State grants, its for the most part free money that you never owe back, for some there are conditions to the grant but I would either read them over carefully of have your attorney do so. This would be the 3rd such venue I have opened, and all 3 will have now been started using grant money, give it a whirl the worst the can say is that you don't qualify and the best would be that you reduce the amount of capital needed to start your company.

[Big Mac]

Thank you for the suggestions, all.