This is a collaborative post by Rosana Beechum.
Finding funding is one of the biggest challenges facing home-based businesses today. Obtaining funding for any business is always going to be a challenge, but for a home-based one, it can seem that much harder to get your business up and running and find that source of cash. Chances are, even if you’ve saved as much as possible, you are still short on funds and need to access more, but where and how will you do that?
The good news is that a lack of funding doesn’t have to mean the end of a dream when it comes to your home-based business, instead, there are options out there. Here’s a look at some of the best ways you can go about obtaining those much-needed funds.
How to Obtain Funding for a Home Based Business
Consider a Partner
One way you can go about obtaining financing is to bring in a partner, who also provides cash. This can instantly double what you’ve already got, plus you’ll have the expertise of someone else that can help your business to succeed.
Partnerships can also be set up in different ways. Perhaps they are a partner just in the financial sense, or then again maybe they will be just as involved in the operations and decisions as you are.
Get a Home Equity Loan
If you own a home that has equity in it, you can also consider a home equity loan. The equity is the amount that you have already paid off against your mortgage, so depending on how long you’ve been paying for your home, it could be a substantial amount. These loans can be given in a lump sum or you may wish to set up a home equity line of credit.
Unsecured Business Loans
This type of loan is ideal for small businesses as they are fast to approve, and they are meant to be a short-term or one-time solution. The advantage of these types of loans is that you don’t have to put up any collateral since it is unsecured. Now, keep in mind that typically means that the interest charged is usually higher.
If you’re not sure if you will be approved for an unsecured loan you can always use a service like Become. Become works by showing businesses the options available to them, improving their funding odds.
If you aren’t looking for a large amount of cash, then you may just want to apply for a credit card for your business. Credit cards are best used for expenses and purchases that you’ll be able to pay for within 30 days so you don’t have to worry about the interest adding up.
This is just a small look at the many funding options that exist for home-based businesses. When you’re tight on cash and feeling overwhelmed it’s easy to let the negativity take over, but in reality, there are viable solutions out there.
Rachel is an Austin blogger, educator, mom, wife, young breast cancer survivor writing about health, saving money, and living a happy life in Austin, Texas.
Rachel has written for HuffPost and Hometalk and has been featured on KXAN, Studio 512, Fox 7 Austin, and CBS Austin.