Can I apply for financing under my corporation or limited liability company? Will banks lend money to corporations and LLCs?
If it otherwise qualifies, an LLC or corporation can obtain a loan from a bank, finance company or other lender. Before applying for a loan or financing, it is necessary to determine the proposed amount of the loan, how the loan proceeds will used by the company, and the company’s expected source of the funds necessary to repay the loan. Typically, lenders will grant loans only if they are satisfied that the borrower has the ability and resources to repay the loan. Also, lenders typically require that any assets purchased by the LLC or corporation with the proceeds of the loans, such as trucks or other equipment, must be pledged as collateral for the loan. Normally, the criteria that lenders use to evaluate a company’s loan application include a thorough credit check of the borrower (in this case, the company and any guarantors). A lender may also look at the company’s cash flow (past and projected) to determine if it will be able to repay the loan and also continue to operate its norm
