My question involves business law in the state of Oklahoma. My daughter is about to graduate from college and wants to pursue her dream---opening a business in a metro area she knows well. She has potential partners, a great business plan, a possible location (with a tax break), and a niche product that has already drawn some interest. However, she has no start-up funds, and I'm uneasy at the prospect of her taking out a loan and starting adult life in debt---something we have always avoided as a family. (She has no college debt.) She is considering a business line of credit and says that I can co-sign that without being liable for how it's used---effectively, lending her my good credit rating for this purpose.
My questions are...
1. Is this wise? Are there better options, or is a business line of credit the best way to go? Is it safe for me to "lend" my credit rating*? We know nothing about these things.
2. What about the businesses---from all over the country---who are now contacting her to offer loans. How can she tell the sharks from the legitimate businesses?
3. What kind of legal safeguards does she need to have in place regarding her partners---friends who are enthusiastic, but young and cash-poor? What are the prudent ground rules?
*I should add that my credit rating is very good but that I have only PT employment now---like so many others, I'm looking for FT work.
Thanks for any advice you can offer! My own preference would be that she get a FT job first to save up money, but the window of opportunity for this niche business seems likely to close quickly.