Financing with an LLC

[Shalom Benton]

I've done some research and it feels like there is some obscurity surrounding starting the process to finance with an LLC.

I have an LLC.

I have free and clear assets in the LLC. And the LLC makes $2100 gross income off of rental units. The LLC also has 50k cash.

What I haven't done is set up the LLC's credit, no credit cards in its name right now..

I want to finance a multi unit. Or do new construction on a lot that I have...What are the next steps to make this LLC less risky to lenders, and get approved?

Do I need to get a credit card in the LLC's name to start some credit history? Will I have to serve as a personal guarantor? Does my personal credit matter? Thanks!!

[Ujwal Velagapudi]

How many years of business tax returns can you show from the LLC - at least 3? If so, that gets you in better position. I think you'll still have to provide a personal guarantee. I had tax returns, numerous free and clear properties, great cash flow, etc. but still had to personally guarantee - so yes, your personal credit and financial statement will matter. A credit card would also help with building your business credit as well.