starting my own business

July 20th, 2007 by Questions

i am going to file a CP soon and was wondering what happen i incorporate during the propsal?
if i start my own corporation during the propsal will i be able to get a business line of credit or credit cards to devlop the business ?
or my bad personal credit will prevent it?

Questions

One Response to “starting my own business”



, A licensed trustee said:

I am not certain why you think you need to set up an incorporated business if you’re just starting out – you should probably review your plans with an accountant before you spend the money.

If it is just a “trick” to try and arrange financing then I doubt it will work – when a start-up company tries to borrow they almost always require the personal guarantee of the businesses owners and as you’ve guessed, after you file a proposal you’re not going to have a very high value as a guarantor.

Talk to an accountant and/or discuss all of this with your trustee before you get started – I think you’re plans will change once you have.

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