Now that you have developed a fabulous idea for a new business startup, you just have to find the funds to get started. If you don’t have extra money just waiting to be used, here are a few tips for securing the needed funding.
Home Equity Credit
If you own a home where you live or a rental property, check to see if it has enough equity built up to borrow from. A home equity line of credit may come with a special introductory low-interest rate that will make the monthly payments easier to manage until your business starts turning a profit. Check with your accountant to see if the interest can be deducted on your annual tax returns. Keep in mind that if you default, you may be subject to losing ownership of your home.
You may have opened an investment account to build long-term funds for education, retirement, or other purposes. Consider borrowing from this account in order to start your business. As the company begins earning money, you can repay the self-loan with interest if desired. Since you won’t actually need the money from your investment account for some time, you can use it now and repay it later without great risk. Talk to an investment adviser about your options.
Compare small business loans among several lending groups, such as Liberty Lending Group, to get the best terms based on your company’s credit standing and borrowing needs. Depending on the size of the loan you want to apply for, you may be able to apply for a personal signature loan. If your company has assets like machinery, equipment, or a vehicle, you might prefer looking into the details of a collateral loan. A credit card account with a low introductory rate could also be an option. You just have to be sure you don’t over-extend your credit, and you want to be sure to make monthly payments on time to protect your credit score and avoid fees or penalties.
Sell Personal Items
Many people have old or forgotten items lying around the house or packed away in the attic that they no longer want. Coin collections, childhood toys, and antique books or furniture may be deteriorating without being used. Get them priced by an expert and then consider selling them to a local shop or on the Internet to earn needed cash for your startup.
Several sources of income may be available to get your small business up and running. Check out options like these to find the cash flow you need.