Entrepreneur Mark Cuban says, “Sweat equity is the most valuable equity there is.” While that is of course important, there is another type you should be aware of and that’s an equity line of credit for your business.
Every business owner has the right to run your business as you see fit and to compete equitably. One type of equity that is not so easy to come by us an equity line of credit for your business. Find out more about this business tool to determine if it is right for you.
Definition of an Equity Line of Credit for Your Business
There are several different types of equity. In short, equity is any kind of collateral or assets you own minus your liabilities.
For example, if you own a vehicle that cost $20,000, but you still owe $5,000 on your loan, then it is worth $15,000 in equity. Many small business owners use whatever equity they have to help their business.
Most commonly, this involves a home equity line of credit. That means putting your home on the line to back up your business bank loan. The main problem is that if you have any difficulties repaying the money, you will lose both your business and your home.
An equity line of credit may be easier to get than a traditional small business loan. However, with so much at risk, you must think long and hard before choosing this option. In addition, you should try to avoid mixing your personal finances with your business finances.
Are There Alternatives to an Equity Line of Credit for Your Business?
You can get a business line of credit from both commercial banks and alternative lenders. These come as either secured or unsecured. An equity line of credit is secured by your collateral. It is next to impossible to get an unsecured line from a bank.
For a better alternative, many businesses are turning to business cash advance companies, like Financing Solutions (www.financingsolutionsnow.com). They work exclusively with small and medium size businesses. As a result, they understand your unique challenges and struggles.
In fact, Financing Solutions is one of the leading providers of fast small business funding in the nation. They built their reputation by making it quick and easy for small businesses to get the money they need to compete and succeed.
Getting your money is simple and straightforward. You apply by answering a few questions on their online form. They will send you an offer letter detailing how much you are eligible for. If you decide to move forward, they will check your credit and ask for some supporting documentation. When everything checks out, you get your cash.
How to foster equity in your business
Give everyone an equal opportunity to succeed. This includes recognition, promotions and professional development options.
Be transparent. When you keep employees in the dark, rumors and speculations are inevitable. Whether it’s your compensation system or benchmark goals, everyone should know how you operate.
Get the right source of immediate business funding. With help from Financing Solutions, you can stop stressing about finances and focus on growing your business.