 |
«A website where you can find the lowest interest rates on home loans with absolutely free quotes from multiple lenders» |
| • Home Equity Loan • Home Refinance Loan • Home Purchase Loan • Second Mortgage Loan • Debt Consolidation Loan | ||
|
 | |
| |
| Home Equity Loan Store :: Loans | |
|
|
|
Finance Your Home Business: Six Ways Under Your Nose
There are lots of ways to get additional capital to expand a home-based business. But before you look outside for financing, leaving the decision about your company's progress and merits to someone else, consider these six ways under your nose to finance your home-based business: Personal Savings Savings are easy to tap and involve no paperwork. The negatives: if you use the money in your business, it eats into your safety reserve and is no longer there for emergencies. It diverts funds from a very low risk investment to a high one. Whole-Life Insurance Whole life policies accumulate tax-deferred cash value that you can tap for your business. But the only way you can tap this cash without paying taxes is to borrow against your policy. As long as you keep your policy intact and pay premiums when due, loans remain tax-free. The negatives: you will be converting a low risk investment into a high one; if you decide to terminate your policy or if you default on repaying your loan, taxes will be due on all cash value accumulated under the policy; if you die before your loan is repaid, any distributions to your beneficiaries will be reduced by the amount of your outstanding loan. A Loan from Your 401-K Plan You can borrow up to $ 50,000 of the money you have saved under many 401-K plans. There are no credit checks. Interest is usually a percentage point or two above the prime rate and the interest that you pay back to the plan will be tax-deferred to the plan. Most loans are repayable out of salary deductions over five years. The negatives: you will have less money invested toward retirement; the dollars used to repay the loan will be after-tax dollars withheld from your paycheck; if you fail to repay the loan, the IRS considers your failure a premature distribution -- you will be charged taxes on the borrowed amount plus you may be assessed a 10% early-withdrawal penalty. A Home-Equity Loan These loans do require that you apply and be reasonably credit worthy. You generally can borrow up to 80% or 90% of the equity value of your home. Interest on these loans is generally tax-deductible. The negatives: you will reduce the equity value of your home by the loan amount; you will be diverting funds from a relatively safe investment to a high risk one; if you default, you put your house at risk of foreclosure. Think very carefully before using this form of financing. Personal Credit Lines and Credit Cards They are convenient, versatile forms of financing. You can borrow and re-borrow up to the line limit as needed. The negatives: you will pay relatively high interest rates-- rates range from 12% to over 18%; the minimum monthly payment on many of these arrangements will repay the outstanding balance within 42 months; it is easy to dig yourself deep into debt using credit lines and credit card debt; high outstanding balances against your line can negatively impact your personal credit rating. A Margin Loan You can use margin loans for purposes other than buying additional securities. Any margin loan will be secured by your equity shares. Rates are often below prime, applying is relatively easy, and these loans have very flexible repayment terms. Loans are initially limited to 50% of the purchase price of your equity securities. Loan repayments are triggered when the value of your stock falls below the margin limit. The negatives: Because borrowings are predicated on volatile stock values, a margin loan can be a risky proposition; if you default in repaying, the brokerage firm can sell your securities to satisfy the loan; an untimely sell-off can have a devastating effect on your portfolio and negative tax consequences. The only safe way to consider a margin loan to finance your home-based business is to limit advances to a relative low ratio of your stock portfolio value - say, 25% or less. Most of these financing methods are under your control and don't require business plans or company financials to qualify. Although each of these methods has risks and disadvantages, so do most external methods of financing. Before proceeding with one of these financing methods, carefully consider the potential benefits, risks and consequences. Whatever you decide, it helps to know the options right under your nose. George Parker is a Director and Executive Vice President of Leasing Technologies International, Inc. ("LTI"). He is responsible for overseeing the company's marketing and financing efforts. One of the co-founders of LTI, Mr. Parker has been involved in secured lending and equipment financing for over twenty years. Mr. Parker is an industry leader, frequent panelist and author of several articles pertaining to equipment financing. Headquartered in Wilton, CT, LTI is a leasing firm specializing nationally in direct equipment financing and vendor leasing programs for emerging growth and later-stage, venture capital backed companies. More information about LTI is available at http://www.ltileasing.com.
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
Guide to Secured Loans Here is a useful guide to secured loans. A secured loan is a loan that a lender provides on the understanding that a property is secured against the loan. First Time Buyer Mortgage -Key to your First Home Living in a rented apartment since long. Ever thought of the disadvantages of staying as a tenant. Should You Get A Pay Day Loan? Whether you have good credit, bad credit or no credit, you are still eligible for pay day loans. Pay day loans come in all shapes and sizes. Guide to Personal Loans Here is a useful guide to Personal loans. What is a personal loan? A personal loan is money lent to an individual by a financial institution for a specific personal purpose. The Average Profile of Customers Opting for a Payday Loan Cash Advance Payday loans are loans of a small amount, taken for a short duration of time. Payday loans are generally meant to be paid off on the next payday. SBA Loan: Qualifying and Applying According to federal government research, small businesses provide about 75% of the net new jobs added to America's economy. They also employ fully one-half of America's private sector workforce. Boat Loans - Steering Way Towards a Bon Voyage In the full moon night, on a lovely morning you would like to take your craft, your boat where the cool wind blows. How it steers slowly along the fine film of transparent blue waters. See What Your Home is Worth If you thought your home is worth nothing except for living purposes, then think again. It might be holding a treasure, still waiting to be explored. UK Loans Guide - Channelising Your Rising Budget in a Productive Mmanner Every unknown road needs a milestone to configure where it leads. Every loan type in UK requires a guide to steer through the loans market. What are Personal Loans? As the term implies, Personal loans are simply loans for any personal use. They're known as personal loans because the money is for personal use, such as buying a car or home improvements. Where to Get Your Military Signature Loan Military signature loans are easy to come by. When looking for a military signature loan you might even get overwhelmed by what seems like an endless supply of lenders, APRs and added perks. Online Payday Loans Offer Quick or Instant Approval For a Fast Cash Loan Online payday loans companies offer quick approval with their online application process. Once you have entered your personal information and source of income, you can be approved for a payday loan in as little as five minutes, and a cash advance can be deposited in your checking account the next day. Short Term Loans...are they right for you? With less than a week before she was to receive her next paycheck, Roni was faced with a problem that millions of Americans experience at some point in their lives: bills that are due and not enough cash available to pay them. Faced with a dilemma of late fees and a lower credit rating, many consumers with no options left turn to credit card advances as a stop-gap resolution for their problems. Lions and Loans: Why Finance Should Always be Personal Different types of loans are available for almost every aspect of your life: personal loans, car loans, secured and unsecured loans, home loans, homeowner loans, student loans, graduate loans and career development loans (CDL). If you've suffered from credit problems in the past and now hold sub-prime characteristics, then you will be eligible for adverse credit and adverse loans. If You're Looking For Low Cost Car Finance, Loan Companies Offer Some Great Deals These days having a reliable and safe vehicle to drive is more important than ever. With public transport packed to the hilt and often unreliable, many people have learned to rely on their vehicles to get to college or work, pick up the kids, do the shopping and even to perform their jobs. Devising Newer Ways of Repayment How good would it have been had there been no obligation to repay the loan or mortgage? This is what most people think when required to make the monthly repayments. But try as much as they can, they are never able to change the situation. Finding an Auto Loan with Bad Credit Finding an auto loan online is easy regardless of you credit score. By simply completing a simple one page application hundreds of online lenders who will compete for your loan business. Applying For a Student Loan Studying at college can be an expensive business and you are likely to be considering taking out a Student Loan to help you meet all our costs. Before you make a decision on which of the thousands of Student Loans that are available is right for you it is important to weigh up all your options. Student Loan Limits Not Keeping Up with Tuition Rates As tuition rates at many colleges continues to rise, the limits that students may borrow each year has stayed the same.Dependent undergraduates may borrow up to $2,625 their freshman year, $3,500 their sophomore year and $5,500 for each remaining year in Stafford Loans. Bad Credit Business Loans - to Exchange Bad Credit for Monetary Benefaction You want to raise a business on your own or you want to expand it further. You have a plan and the vigour to make your mark in this field.
|
