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How to Finance a Business: Thinking Outside the Box

Faith Stewart
By Faith Stewart
on June 11th, 2014
 

Faith Stewart is a wife, mom, and freelance writer. She earned a BBA with a major in accounting and spent 10 years working in the fields of finance and accounting before pursuing her passion for help

How to Finance a Business
Financing a business is typically the first hurdle one must jump when getting started. Launching a company is expensive, and the whole process can be overwhelming. Sometimes it may seem that you are met with brick wall after brick wall when trying to get a lender to see what a winner you have and make a startup loan. There are other options however, if you just think outside of the box a little.

Retirement

If you have a 9 to 5 job, and are currently contributing to a retirement plan, you may be able to borrow from it to start your business. There are all kinds of terms and regulations that apply, but if you believe in your business enough, it is an option that could work.

Loans Against Luxury Assets

Do you have boat, a cabin at the lake, or a motorcycle? Any of these and other luxury items can be used as collateral on a loan to help you start a business. These are personal loans, so that there will be no need to sell a lender on your business idea. You simple get the loan personally and use it however you wish.

Investors

If you get enough people — or one person with plenty of money — interested, you may be able to secure enough capital to get your business off the ground. Of course, terms such as how the profits will be split, how much responsibility and input they will have, and how the funds will be drawn will have to be discussed.

Crowdfunding

A relatively new take on getting investors is crowdfunding. This is where many “investors” or members of a “crowd” each invest, or donate, a much smaller amount. These amounts add up to major funds if you are successful, and you can then get started on the business of startup.

If you choose to go the financing route, whether through traditional business loan means or with loans against luxury assets, Biz2Credit can help. Our network of over 1,300 lenders is standing by to be matched with borrowers just like you. Visit Biz2Credit.com today to get started.

  • Gracie stawert

    People can borrow upto $50,000 from their IRA savings accounts but then it needs to be paid back within five years, with interest. However, one can also borrow an interest free amount for a period of 6 months. Though, if one fails to pay back these loans within the stipulated time frame, income tax plus a 10 percent early withdrawal fee is levied on the loan amount.

  • meganvaughn269

    People can borrow upto $50,000 from their IRA savings accounts but then it needs to be paid back within five years, with interest. However, one can also borrow an interest free amount for a period of 6 months. Though, if one fails to pay back these loans within the stipulated time frame, income tax plus a 10 percent early withdrawal fee is levied on the loan amount.

  • meganvaughn269

    Life insurance policies can be used as a great business financing options as well. Upto 90 percent of the cash value of the account can be borrowed at comparatively lower interest rates. Once the business is off the ground the borrower can replenish the policy amount to put it back on track.

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