The risks, before anything else
Being a credit partner means putting your own signature and credit behind a business's debt. Read this page in full, and have your own attorney read the agreements, before you decide.
The lender can hold you personally liable for the debt.
What can go wrong
9 risks to weigh
You are personally liable
Your liability depends on each lender's documents. A personal guarantee can expose you to the full balance you guarantee, plus interest, fees and collection costs. If the business does not pay, the lender can collect from you, report to your credit and sue you. In community property states, shared household property may be exposed.
Your credit can be affected
Each application can add a hard inquiry. Late payments or a default can lower your scores and stay on your reports for years. Many business cards only appear on personal reports once they are seriously late.
Safeguards have limits
Autopay can fail. A reserve can run out. An indemnity is only as good as the company behind it. None of these changes what you owe a lender. The reserve covers a set number of months of estimated payments, not the full debt, and it can be depleted. The indemnity and reserve top-ups are only as good as BCP's companies.
Lender guarantees are strict
Many lender guarantees ask you to give up defenses against the lender. Your right to be repaid by our companies is separate and only as strong as our agreement with you.
Issuers can close or reduce accounts
Issuers can review, reduce or close accounts and ask for full payment. Leaving does not always end your liability at once: some issuers keep the original signer responsible until they approve a replacement.
Leaving does not end a guarantee
Leaving your officer role does not release a personal guarantee. It ends only when each lender releases it in writing, or the debt is paid and the account closed. After you sign, cancellation depends on the agreement.
Portal data can be late or incomplete
The portal shows available account and payment information, with its last update time. Confirm payment status directly with each issuer; portal information may be delayed or incomplete. A payment shown as scheduled or pending has not posted yet, and autopay can fail.
Taxes
Your fee is taxable, and how it is reported depends on facts our tax adviser decides. Ask your own tax adviser how it affects you. BCP charges no enrollment fee. Any third-party subscription, legal cost or other expense is disclosed before you incur it, along with who pays it.
The program is not final
Interest list only. Enrollment and credit applications are closed. The proposed program is under legal review and may change or may not launch. This site describes a proposed program whose terms may change.
Fit
Who should not join
If any of these is true for you, please do not apply. We will tell you the same in the consultation.
Please do not join if
- You need the money, or could not repay the full debt yourself if the business did not.
- You cannot afford the risk to your credit and savings.
- You want a passive investment or a title without duties. This role has real duties and approvals you must do yourself.
- Your spouse has not agreed, or you live in a community property state and shared property could be exposed.
- You plan a major loan soon, such as a mortgage or refinance.
- You are already a guarantor in another credit partner program.
- You would not have your own attorney read the agreements.
- Anyone, including us, asks you to be listed in a role you do not hold or to state anything untrue on an application.
Household and spouse
We ask whether your household agrees because it is a suitability point. It is not a substitute for any spousal consent the law requires. In community property states, a guarantee you sign may expose property you share with your spouse.
Where that applies, we ask for your spouse's acknowledgment of our agreement only. We never require a spouse to sign a lender's guarantee. Ask your own attorney how your state's rules apply to you. The lender can hold you personally liable for the debt.
Still interested after reading this?
The form is short and does not enroll you in anything. The consultation goes through these risks with you again.
Status. Interest list only. Enrollment and credit applications are closed. The proposed program is under legal review and may change or may not launch.
- The lender can hold you personally liable for the debt. Read the risks
- BCP charges no enrollment fee. Possible costs, such as a credit monitoring plan or your own attorney, are disclosed before you incur them. Costs and who pays
- Read the draft agreement terms