07.27.06
Show Me The Money
Starting a business doesn’t come cheap. Finding the money can be a challenge. However, there are options to consider for raising the needed funds. Some of the more common options include:
Borrow Against Your Home – borrowing against the equity in your home is one of the most popular ways in which people raise the money to start their business.
Borrow Against Your Life Insurance – if you have a whole life insurance policy, chances are you can borrow against its value. Typically after three years most people have built up some level of cash value.
Borrow Against Your Investments – if you have a prior 401(k) plan or investments with a brokerage, you can borrow against those investments at a specific interest rate.
Family and Friends – another great source for funding as many people who know you and believe in you are more likely to lend you money.
Credit Cards – it may be a quick and easy way to pay for your business, but mind the interest that will add up if you only pay the minimum amount each month.
Of course, each of these financing options has their advantages and disadvantages. Be sure to research the pros and cons of each one before pursuing.
