Legal Question in Civil Litigation in Georgia

Business line of credit and collateral

I have a new LLC and need to get a line of credit to secure a professional license. My bank says I will need to secure it with my home since the account is 4 months old. Could this tie my business to my personal assets should a future lawsuit happen and put my home or other assets at risk?


Asked on 5/19/08, 10:20 pm

2 Answers from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Re: Business line of credit and collateral

Yes.

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Answered on 5/19/08, 11:27 pm
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: Business line of credit and collateral

Yes, but probably only with regard to the bank. It is common for members of an LLC to personally guarantee loans early on because there is no business history upon which the lenders can determine credit worthiness.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

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Answered on 5/20/08, 9:12 am


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