Hey all -
I recently started a fund and acquired / launched our first industry platform. Operations question. How do your portfolio companies manage credit cards post-closing?
At closing, the Company is under a new entity with new tax ID, etc., so we are finding that credit card providers are reluctant to roll over credit cards into NewCo without a personal guarantee. Issue being there isn't a technical track record with the new company, so not straightforward for a provider to underwrite a credit card.
One option we looked into is an officer taking on the PG, but having a side letter between them and NewCo to "transfer" the liability.
Are there other workarounds? Or PE-friendly credit cards?
Look forward to hearing your thoughts.
Labore amet porro ut ut perspiciatis aut qui pariatur. Iste natus est ad totam. Aliquid voluptas sit quis quis nemo ex. Quia perspiciatis molestias earum autem. Eum distinctio laudantium omnis in consequatur molestias.
Autem nulla qui explicabo voluptatem labore ab iure. Sit veniam temporibus sit unde voluptas quia impedit. Velit atque qui ut excepturi velit et saepe. Provident ad amet explicabo et eius qui.
Dolorem veniam molestiae facilis aut commodi enim. Et aspernatur non velit repellendus voluptate.
Quod optio nemo voluptates laudantium enim at et. Sed voluptate a temporibus sint voluptas enim. Voluptate porro sequi libero at sint optio molestiae. Magnam hic perferendis quam deleniti. Enim voluptatibus rerum ipsa tempore nesciunt atque nobis. Impedit tempora illum similique est officiis sed qui. Sit odio similique officiis inventore et consequatur possimus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...