In business, you don’t give up on your dream just because you have a nightmare. To save your business, you may feel desperate enough to risk everything, including your home. However, you don’t need to get a home equity line of credit (HELOC) for your business.
While you might have to make sacrifices for your company, your home should not be one of them. That’s why a home equity line of credit (HELOC) for your business may not be the best option.
The Pros and Cons of a Home Equity Line of Credit (HELOC) for Your Business
Purchasing a home is not something to take lightly. You put a lot of time, effort and money into finding one that is perfect for you, your family and lifestyle. Over the years, you are rewarded with the equity gained from your investment.
Thankfully, you can use that equity as collateral to qualify for a fast small business loan. This will allow you to meet the bank’s strict criteria for a loan when you might have otherwise not been eligible. It gives you a supply of fast cash, typically up to 85 percent of your home’s value, to help save your business. The interest might even be tax deductible.
Taking out a home equity line of credit (HELOC) for your business puts everything you’ve worked for in jeopardy. If for some reason you are unable to repay this short term business loan, the bank can force you to sell your house. Additionally, rates are variable. This means that you are subject to rising interest rates that could significantly impact your payments.
Why Financing Solutions is better than a Home Equity Line of Credit (HELOC)
Don’t put your home at risk. Financing Solutions (www.financingsolutionsnow.com) provides business lines of credit for businesses with sales of $350,000 a year to $10 million a year and your home will not be in danger. Plus, their business line of credit is so much easier to get in place than what you can get from a bank.
Additionally, they do not charge for applying, set up or for when the line isn’t used. With an unsecured line of credit or business cash advance, you can get the money you need in less than 48 hours.
Experts recommend that you only use a HELOC for items that will improve your home’s value, such as a kitchen remodel or to add a garage. If you are already struggling to make payroll or make ends meet, a HELOC for your business is not for you.
Mistakes You Don’t Want to Make in Your Business
Don’t rest on your past successes. You must continue to grow and innovate. If you are not moving, you will be overtaken by the competition.
Don’t ignore trends. Always pay attention to what’s going on in your community and industry. This will help you prepare for change and never be taken off guard.
Don’t wait too long before asking for help. Contact Financing Solutions now to get the fast business funding you need.