Establishing A Business Line Of Credit (LOC)
I am currently in an underwriting process for a business line of credit. The business development manager (BDM) I am working with is the intermediary between me (the business I am a member and manager of) and the underwriter/underwriting team.
A few of the communications from my BDM have seemed a bit fuzzy (not clear). So, I want to address most if not all potential issues as early as possible. I explain the business structure and ownership models below:
Company A - Georgia based LLC doing business in GA, NC, and OR
50.01% Owner/Member #1 (a Georgia Corporation [Company B], since 2008, IP sold in 2018 and corporate name change)
24.95% Owner/Member #2 (me in NC)
24.95% Owner/Member #3 (GP in OR)
* All documentation pertaining to the LLC (Company A) has been submitted
* 50.01% owner of LLC identified as principal for LOC processing
- the person behind the GA corporation, credit score 800+, personal asset 3MM+
* Have sent in the following information on Company B (the GA corporation):
- Article of Incorporation
- Bylaws
- All State Filings since 2008
- Is an S-Corp, the CEO is the owner
- ??? Should it be clear that the CEO/owner of Company B controls Company A (the LLC), because he is the signatory for Company B ???
Post by the following BP contributors have given me a little insight:
@DonKonipol, @WilliamBaptist, and @RaphaelC
A few of the communications from my BDM have seemed a bit fuzzy (not clear). So, I want to address most if not all potential issues as early as possible. I explain the business structure and ownership models below:
Company A - Georgia based LLC doing business in GA, NC, and OR
50.01% Owner/Member #1 (a Georgia Corporation [Company B], since 2008, IP sold in 2018 and corporate name change)
24.95% Owner/Member #2 (me in NC)
24.95% Owner/Member #3 (GP in OR)
* All documentation pertaining to the LLC (Company A) has been submitted
* 50.01% owner of LLC identified as principal for LOC processing
- the person behind the GA corporation, credit score 800+, personal asset 3MM+
* Have sent in the following information on Company B (the GA corporation):
- Article of Incorporation
- Bylaws
- All State Filings since 2008
- Is an S-Corp, the CEO is the owner
- ??? Should it be clear that the CEO/owner of Company B controls Company A (the LLC), because he is the signatory for Company B ???
Post by the following BP contributors have given me a little insight:
@DonKonipol, @WilliamBaptist, and @RaphaelC