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How To Get The Money To Start Your Business Now

You may have long dreamed of starting your own business, but many things might have held you back. After you conquer your self-doubt and your fear of the unknown, one of the first things you will likely want to tackle is getting the money to get things going. Even a small, online business will require some startup, and if you plan to make your new business your full-time job, you’ll need a lot more money to support yourself while you get your business off the ground.

How To Get The Money To Start Your Business Now

Traditional business loans are the first route that most people explore, but they aren’t always the best option. Of course, there is always the option of a personal loan as well. Reputable comparison sites like Credible and NerdWallet make it easy to see and compare different loan providers and rates. Still though, there are other sources of startup capital that are not as commonly thought of as a traditional loan. Here are a few other ways you may be able to get the money you need to start your business:

Reverse Mortgage

If you own your own home, you are sitting on a valuable asset. You don’t have to sell it to get the money you need. You can get a reverse mortgage, and the bank will actually pay you for your home. You don’t have to make monthly payments on the loan. You pay back the amount when you sell the house, or your beneficiaries pay it back when you die. That means that you have a huge chunk of cash to put into your business, and you don’t even have to worry about a monthly payment. You can make your business a success and earn back the money multiple times over.

Home Equity Loan

Maybe you don’t own your home yet, but you’ve been paying on it and have built up a good chunk of equity. You can take out a loan on that equity and use it to start your business. You could get anywhere from a few thousand dollars to tens of thousands of dollars. The longer you have lived in the home, the more equity you are likely to have. Or, if you live in a hot real estate market, the value of your home might jump, netting you more equity.

Car Sale

If you don’t own a house or you aren’t able to get as much as you need from the house, you should look to your next most valuable asset, which is likely your car. Maybe you and your spouse have your own cars. Instead, you can sell your car, and the two of you can share a car. The sale could give you enough to start a small online business while you are still working on the side, or it could just help you bridge the gap with other financing.

Investments or Retirement Accounts

No financial advisor would recommend that you cash out your retirement account. They might be a little hesitant to tell you to cash out your investments, such as stocks or bonds. But if you really believe in your business idea and you have a solid plan, then you can feel relatively certain that using that money to start your business is a better investment in your future. Considering many folks are living to see their 90s, your business could earn you the extra boost needed to properly save for this amount of time in retirement. That’s a big risk you’re taking though, so make sure that you are sure about your vision.

Family Loan

If you have a wealthy family member, you might be able to get a little loan interest-free. Just make sure that you discuss all the specifics of the loan before you accept the money. You don’t want a misunderstanding to hurt your relationship. For example, you might think that you don’t have to pay back the loan until you get the business going, but your relative might expect you to start paying it back right away and could get angry and resentful when you don’t. Discuss all the terms up front, and be specific. You’ll save your relationship and a lot of hurt feelings later.

Don’t let the fear or intimidation of financing keep you from fulfilling your dreams. You have options outside of the traditional business loan to realize your vision. Once you clear that hurdle, you can start growing your business and creating the financial freedom that you have always wanted, as well as steer your life in the direction you want it.

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