In December Forbes Expert Panel, Capstone Managing Member Joseph Ingrassia discusses what to expect when funding your business with a personal loan and how you will probably need to put up personal collateral.
You’ll probably have to put up personal collateral.
Many banks and credit facilities require a pledge of all of your personal assets, and this pledge may limit your ability to borrow additional funds as your business grows. Having your personal residence as collateral may add stress to your personal relationship since the bank may also require your spouse’s personal guarantee. If there is a blip in the business it could lead to the loss of your residence.
– Joseph Ingrassia, Capstone Corporate Funding, LLC
