Site Loader
111 Rock Street, San Francisco

Often people ask us whether there are loans for starting their own businesses. And from time to time we receive inquiries about work-at-home business loans. In order to understand whether these loans exist and what are the requirements to get them, there are several concepts that need to be clarified. Some terms that have to do with the loan industry are used without caution and thus, generate much confusion. Following, some clearing up:

Business Loans Are For Running Businesses

The business loans that banks and financial institutions offer are for running businesses with at least three years of existence. Though there are loans for starting up businesses, these should not be called business loans. Moreover, business loans are granted to the actual business that needs to be legally constituted and subject to all the federal and estate regulations on the matter.

Government Loans and Grants For Starting Up a New Business

Though there are government grants and loans for starting up a business, when it comes to work-at-home businesses, there is not much government aid. The reason is simple; the government needs to foment businesses that generate income and jobs and work-at-home businesses can not provide that. Nevertheless, for those with physical difficulties or home-confined relatives, there are solutions provided directly by government agencies.

Personal Loans for Starting Up A New Business

Therefore, if you are thinking about starting up a new home based business, the best solution to your financial difficulties is to apply for a personal loan. Personal loans can be used for any purpose and so, they can also be used for setting up a new business. The loan amount you can obtain is never too high but for a home based business, you can get enough money to get you started.

Getting approved for a personal loan is not a complicated task. Personal loans are awarded according to your income and credit rating. If your credit is not that good, you may want to consider applying with the aid of a co-signer or resort to secured forms of financing like the one explained next. If you have a bank account and a history with a financial institution, your chances of approval with that particular lender will be higher. Hence, your bank or the financial institution you work with more often should be your first choice for a lender.

Home Equity Loans for Starting up a New Business

If you need a higher amount to finance your work-at-home business project, home equity loans are the best solution. With just a little equity left on your property, you can obtain inexpensive financing for your home based business. Moreover, the repayment program can be a lot longer than with personal loans and the costs will be significantly lower because the rates associated with these loans are very competitive.

Furthermore, there are also home equity lines of credit available that provide more flexibility for your business because you can repay the amount owed as you want and withdraw money again as you need it without worrying about fixed monthly payments.

Post Author: Mary Anderson