Buying DVC from Disney with bad credit?

[crisi]

Us, and our credit is a million times better than it used to be. I recognize that maybe we're one in a million (on the other hand, I don't think we're that unique at all), but financing it and then facing a layoff notice after passing the rescission period was the absolute BEST thing that could have happened to us. We finally realized that not only did we look bad on paper, but we were DOING stupid things, too.

Not nearly one in a million. When we bought DVC I think my husband's bankruptcy was still on his record. We didn't finance, we paid cash, but at the point we bought, we had very small risk in buying a timeshare despite him having bad credit.

 

[CraigInPA]

I recall you stating you financed everything you could. One of the reasons it works in business is you can structure it so that when it doesn't work you simply walk away and the business takes the hit.

That strategy only works when you've been in business for a very long time, with lots of revenue. Otherwise, you'll find it impossible to do today. The reason it's impossible is that you can't get a small business credit card, or even a cell phone, without a letter of personal guarantee today. Once you sign that letter, you personally become responsible for the debt if your business defaults. You could, possibly, get credit from a direct lender for inventory or machinery, sell the inventory or unsecured machinery, and then "simply walk away", but that will likely boomerang back at you in a criminal or civil complaint that the lender would undoubtedly file alleging fraud.

 

[Dean]

That strategy only works when you've been in business for a very long time, with lots of revenue. Otherwise, you'll find it impossible to do today. The reason it's impossible is that you can't get a small business credit card, or even a cell phone, without a letter of personal guarantee today. Once you sign that letter, you personally become responsible for the debt if your business defaults. You could, possibly, get credit from a direct lender for inventory or machinery, sell the inventory or unsecured machinery, and then "simply walk away", but that will likely boomerang back at you in a criminal or civil complaint that the lender would undoubtedly file alleging fraud.

This post was from 3 years ago but the point at the time was it generally isn't a good plan to finance as it represents risk. As you note it's more difficult now to have business debt without a personal guarantee but it's still possible in some cases.