Working from home saves you a lot of money on initial costs of establishing a business. You don’t have to pay for office space, extra staff, supplies, etc. However, almost every kind of business requires a small initial capital. So, what do you do if you don’t have any?
You get small business financing, of course!
Note that the loan doesn’t have to be labeled that way. You can get some extra cash from many lending sources and not even mention you’re to use it for establishing a business. However, sometimes that might help to get a better rate with lenders. So, be sure to have your business plan on hand.
In This Post:
4 Ideas for Home Business Financing
Small Business Credit Cards
Note that your personal credit card will do as well. However, credit cards for small business are created specifically with entrepreneurs in mind and will have better terms or handy cashback offers. Therefore, it’s best to look for a card with a rewards program that will work best for your chosen niche. Take a look at some of the small business credit cards available today and see the differences for yourself.
The trick to dealing with this type of financing is to always make your scheduled payments on time. Missing a deadline, usually, brings the rates up, which can be very hard on a startup business.
Auto Title Loans
If you have a vehicle, getting a car title loan will be a great solution. This way, you make this asset work for you even when working from home. Depending on the lender, this kind of loan can provide you with up to 100% match of the vehicle’s Manheim value. The best lenders will allow you to use the car while you’re paying off the loan, so you won’t be inconvenienced by the deal at all.
You can get this type of loan not only on cars but also boats and RVs. The cash is usually provided within hours and this kind of loan rarely requires a credit check.
SBA loans are the loans guaranteed by the Small Business Administration. Note that it doesn’t give you money directly. Instead, it acts as a guarantor for you with qualified lenders. This solution will be great if you have a good idea and lots of ambition. However, SBA lending programs are quite specific, so you might not qualify.
On the good side, the SBA offers some counseling and education options for young entrepreneurs. Be sure to check them out and see how these programs can help you run your business long-term.
Imagine having a rich uncle, who gives you an initial capital because you are the favorite and have lots of talent. Angel investors are that ‘uncle’. If you don’t have a family member or friend who can provide you with financing, you can look for these investors elsewhere.
When dealing with angel investors, be sure to outline the terms of your deal extremely well. This will prevent a lot of legal problems in the future.