If I put up my house against a truck loan and incorporate...

Whew glad you checked on that. Never use your house as collateral on a loan.

 

I'm no finance expert, but my gut says DON'T do it.

OMG is hell freezing over?
I agree with Mooney.

 

The only thing I have to add, aside from MedicineMans comments...is


Holy ####!!!!!! Have you lost your mind ???

My banker said it best. If anything won't stand as it's own collateral, it's overpriced. And you should renegotiate the deal.

 

Canuck what kind of rates are they offering you? Sometimes a line of credit against your house is better than financing. There are programs out there from the government for improving an existing small business or starting one. You have to jump through some hoops but some of them are really good deals. I'm from Ontario and the rule of thumb is usually don't incorporate until you're grossing over 200,000 to 250,000 a year.

 

Smartest advice I ever got was to never borrow money on a depreciating asset. Can't say as I followed it always. The best money I made as an o/o was when I bought a truck outright. No restrictions and I could afford to wait for the high$ loads

 

CAPTAIN CANUCK: my friens thats the best and fstes way i noof to lose your house if you lose the truck thats what there going to come after. now you mentioned forming a corperation and that can be a good thing. if you incorperate and you keep your personal assets seperete and ther not connected to the corperation in any way then you have some level of protection, if the truck you buy is in the corperate name and in fact you have kept all your assets seperate and i mean totaly seperate from the corperation then all they can take is the truck they cant touch your personal assets.
now in this credit market which is almost nonexsistent the banks bless ther hearts will try to get you to list all your assets as security encluding your first born DONT DO IT once you do you might as well not have a corperation they can AND WILL take it all.
the banks caused all the problems we are now going thrue but instead of trying to make up for it and making things better there just making it harder and harder to do business and there doing there best to circumvent corperate law if you fall for it you lose the corperation will not help youBE CAREFULL MY FRIEND DONT FALL INTO THAT TRAP.
HOPE THIS HELPS . SOUTHERNPRIDE

 

No,.. No... No... Don't buy anything on credit TODAY.
Horrible Idea !


.... They never listen, anyway,.. def ears...bla,bla,bla...

 

CAPTAIN CANUCK be sure they don't "slip in" a deed/lien on your property. Would not be the first banker/financier that grabs a lien on every piece of equity they can.

Commercial finance is completely different from personal finance, and frequently has less disclosures. The assumption is if you are in business you should be able to look out for yourself.

Not familiar with your laws, but, have seen many commercial deals where they grab liens on everything they can to assure they get paid. They don't want your house, but, absolutely want their loan paid. A lien on your home is to motivate you to pay.

I was a mortgage broker and did mostly commercial. My wife still is in the business(mostly residential). If they insist on the lien, then look to an equity line which would also be useful for emergency reserves.

 

I am new to the trucking business, but have owned two construction companies. As stated, don't EVER put your house up as colateral, as stated by MedicineMan, you only have to be late 60 days on a payment and they can put a lien on your home. A real mess! If this is the only way to do it, (and I don't think you have talked to enough finance companies), then take a seperate Home Equity loan, get "Unemployment Ins, and Gap" on the loan if offered. Incorp (as stated) no longer puts a curtain of protection between the company and your assests like it used to. The laws have changed. If your company fails, debt is distributed based on Shareholder %, which means your on the hook, and new bankruptcy laws no longer eliminates debt like it used to, so if you do fail, your gona have to work the debt off!