Home Business Start-up Funds

By: Demetrios Tzortzis

If you're planning to launch your own home-based business, you have a lot to think about. After you have developed a solid business plan, you are going to need funding. No business operates without cash. It is erroneous to believe that starting a home-based business doesn't cost anything. It's true that may not cost as much as a brick-and-mortar business, but it does still have its own costs.

It's only logical to assume that if you want to begin a business home-based or not you're going to have to have investment capital. There are expenses to be dealt with. At a minimum, you will need phone lines, fax lines, a computer, a printer, office furnishings, office supplies and at least a little bit of capital to begin advertising with. It's not that big of a deal to come up with funding. Here's a helpful list that will get you going in the right direction:

1)You can use your credit cards. That's what they're for. Credit cards are convenient and easy to manage. You have to be smart about using them though; interest rates can be high.

2)If you qualify, get a personal loan. One of the best reasons to use your good credit rating is to enhance your life by launching a home-based business. Getting your business off to a good start will enable you to generate the funds necessary for repayment.

3)You can also apply for a business loan. These are difficult to get though, especially for home-based businesses. This is because a home-based business has little or no equity and most likely no proven record of success. If you can obtain one though, interest rates are normally easier to deal with.

4)Consider a home equity loan. Although you have to provide adequate collateral, these loans can provide larger sums of cash if needed. Repayment terms are also quite lenient. Repayment terms of these loans often extend for 15 years or more.

5)Apply for an SBA loan. Home-based business entrepreneurs often have great luck obtaining SBA loans. The U.S. Small Business Administration backs these loans as well as 75% of individual loans made by banks. This means that the lending bank incurs less risk. The website is http://sba.gov. Check it out.

6)You can also use your personal savings. You can either withdraw your funds directly or use their value to obtain a loan. What better to spend your savings on than launching your own business?

Regardless of the method that you choose, launching a new home-based business will require funding. That is a given and you need to think about it. You will hear all kinds of claims that it is not true that you can start a thriving business for just pennies. The reality of the situation is different. Explore your options for funding your home-based business launch today. When you have the freedom that investment capital can afford to you, you will be better able to concentrate your efforts on creativity and customer service.

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