Question
How do you get a loan for a small biz as a minor?
Okay I know you can't legally get a loan as a minor. But if your parents say sign for the loan what happens? I'm 17 right now and I want to reopen my catering business. Since I'll 18 soon, what happens? Do they start billing me for the money to payback the loan?And can my parents just give me the money to use, or do they have to use it, like can they put it in my account after they get the loan? What legal things do I have to go through?Lawyers in the house please help thanks, or just anybody with a small business?
5 months ago - 1 answers
Best Answer
Chosen by Asker
As noted, because you are a minor, you could not get the loan. Your parents may be able to get a loan under varying alternatives (business loan, personal loan, home equity, etc). They could then in turn loan you some money (but not legally transfer the loan to you). If you signed an agreement with your parents to pay it back, that contract is voidable up until you turn 18. However, if you do not void it prior to then, once you turn 18, it is an official contract. However, at this point, your parents are still legally bound to their loan with the bank. And you are legally bound to your loan with them. There is no transference or assignment of their loan directly to you. What this means is if you default on your loan to your parents, you parents have to come after you to try to get made whole. The bank does not have to come after you. Your parents still owe the bank money. If your parents default on their loan to the bank, the bank cannot come after you. There are in effect two separate loans, unrelated to each other. 1. Parent from Bank 2. You from Parent
by S
5 months ago
Asker's Rating: 