Is There an Alternative to a Home Equity Line of Credit for My Business
If you are a small business owner, it’s likely that you have (or soon will) go to a bank for a quick business loan. You are then told that the most you can get is a home equity line of credit for your business. This means you must put both your home and your business at risk.
When you need fast cash for your business, your options are limited. At a bank, a home equity line of credit can be obtained quicker than a traditional loan, but there are other alternatives.
What You Need to Know about a Home Equity Line of Credit
How business should work: You own two pieces of property. After selling one, you can use the money to build a factory on the other. Then, you hire workers, make a great product and improve the economy.
The way business actually works: You want to purchase two pieces of property. However, the bank won’t give you a fast business loan because you don’t have any property to put up as collateral.
In short, banks take a risk when providing small business loans. If you don’t pay it back, that’s a loss for them. Banks are, first and foremost, a business and no business wants to lose money.
To protect itself, the bank asks for collateral to cover the cost of the instant business loan. Since most small business owners don’t have the necessary assets in their business, this leave your home as the biggest asset you can offer.
This is fine to get the cash you need in a hurry. The downside is that if you have trouble repaying the loan, they will take your house. You will probably lose your business, also.
Where to Go for an Alternative to a Bank Home Equity Line of Credit
Financing Solutions (www.financingsolutionsnow.com) offers a business line of credit that is unsecured and costs nothing to get in place. Your business needs at least $350,000 per year in sales to qualify.
It takes only a few hours to get a written offer and 24-48 hours to get your money. Best of all, the line can stay in place for up to 12 months.
A line of credit from Financing Solutions is an ideal source for short term working capital. You can use it to make payroll, cover account receivable gaps and ensure that good opportunities for growth don’t pass you by.
Alternative Approaches for Growing Your Business
Some people think of business growth as a goal. You know that today, it’s a necessity. Competition is fierce and you must constantly find new ways to shine.
One of the easiest things to do is to rely on your current customers. Give them an exceptional experience to keep them coming back. Also, reward them for referring others.
You should also consider participating in trade shows. This can be a great method to improve sales and promotion because the audience is already interested in your product. They are not cheap so choose the shows carefully and have a clear set of goals to get the maximum return on investment.
Of course, the best thing you can do for your business is to get immediate business funding from Financing Solutions. They will help you grow and thrive.