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Transfer my business line of credit?

Author: admin | Posted: 09-03-2010 | Category: Line of Credit Business

I started a company with another person and he questioned me to apply for business line of credits for the company to use. He then max-ed out the money on the credits. I’m now no longer with the company, but that person is not responding to my requests of him taking over the line of credits responsibility. What I can do? Thanks

You can TRY to get the bank to release you. Assuming the line of credit is in the BUSINESS name, you have a shot at that. In the very likely chance they won’t release you, your ONLY option is to pay off the existing balance and sue him for repayment. You CAN inform the bank you will not be liable for any FUTURE borrowing against the line. If they allow your partner to keep using the line, they must pursue HIM for those amounts.

Category: Line of Credit Business by admin

One Response to “Transfer my business line of credit?”

  1. STEVEN F, on March 9th, 2010 at 9:14 pm Said:

    You can TRY to get the bank to release you. Assuming the line of credit is in the BUSINESS name, you have a shot at that. In the very likely chance they won’t release you, your ONLY option is to pay off the existing balance and sue him for repayment. You CAN inform the bank you will not be liable for any FUTURE borrowing against the line. If they allow your partner to keep using the line, they must pursue HIM for those amounts.
    References :

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