You need to talk to your legal counsel. This sounds more like a venture capital operation then a loan. You need to focus on solid guarantors, if you are dealing with a new venture. The costs involved and crossing the line into management decisions at the company become a concern.
Loan to New Entity-Short Term Line of Credit
We are trying to make a loan to a new entity and provide a short term line of credit to help fund the costs of there first contract as a company. We are wanting to take an assignment of the contract and have their customer issue joint checks for their payouts. I have been unable to find any document that works on our compliance software. Any ideas of how I would perfect this transaction?
First published on 07/14/2019