Many Americans are having difficulty obtaining credit of any kind, in today’s economy. Business owners are certainly no exception to this rule. So, what do you do if you can’t get a business line of credit? We’ll be discussing some of your options, in today’s article.
If you are a homeowner, you can get a home equity line of credit much more easily than a business line of credit. This is especially true if your company is relatively new. Your home is a secured asset. As such, it works great as backing capital, under most circumstances.
You must have equity in your home, and you can typically only borrow up to the amount of equity that you have. However, if you have a decently good credit rating, this may be a viable option for you. Keep in mind that you will be risking your home. If your venture goes under, and you aren’t able to repay the credit line out of your own funds, you’ll lose your home. Thus, use this option with caution.
Let’s assume you are currently retired or semi-retired. If you are trying to start a side business, you have the option to borrow money from your 401k. This can be an expensive option, depending on how you go about it. However, you should be able to avoid the penalty for early withdrawal if you are already retired.
Of course, you will be reducing your retirement income. Thus, you should weigh that against the potential benefit of your new venture when deciding to use this option as an alternative to a business line of credit.
For more information, go to Business Line of Credit at http://www.unsecuredbizloan.com/business-line-of-credit/