Q: As an LLC member and guarantor of a loan that the LLC carries, how would the loan show up on that member's credit report or affect their credit score, if at all? Assuming it does affect credit, is it possible to exclude a single member (or a subset of members) from being a guarantor or a loan the LLC carries for a plane purchase? This hypothetical member would have the required assets and credit to qualify but is concerned about how being a guarantor will affect his credit.
A: To address your first question, each borrower or member of the LLC that provides an application will be guaranteeing the loan 100%. The full loan amount will be reflected on each applicant’s credit report. Further, the lenders in our syndicate will allow for a maximum of 4 members in the LLC that holds the aircraft. Generally, each member will need to provide a complete application and qualify individually. On an exception basis, there may be lenders that can waive the application requirement for a member who owns a minority share of the LLC. We would be happy to discuss your situation in more detail, please give us a call at 800.627.5263.
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