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Posts Tagged ‘Home Equity Line’

Getting a startup loan for your small business can be a pretty daunting experience. You need the loan to get the business started, but the bank needs you to be in business for 2 years in order to get the loan in the first place. Talk about a catch 22! As much as we like to bash on bankers, you have to look at it from their point of view. They are not in the ‘investment’ business, but they lending business. Their job to their investors is to make sound investments in solid companies so they can appease the shareholders of the bank. Having said that, here are some tips for finding the financing you need to get your business off the ground and going.
1. Find a partner-You bring the knowledge and he brings the cash. Don’t get too excited and forget about the big picture though. If you need $10,000 and your partner puts in $9,000 and you $1,000, remember that if that business grows to 10 million that he is entitled to 90% of those profits. Keep a situation like this in mind when you are thinking about bringing a partner on board.
2. Go to family-Your family, hopefully, will be a little more willing to lend you money than a bank. Plus, you won’t have to answer as many questions! Just make sure that you have an understanding family and make it a point to make a formal arrangement to repay them.
3. Home Equity Line-Really, this is many times the only way that a business will give you a loan. Your equity is probably your most substantial asset so its only natural that it makes sense to utilize it. Qualifiying for a Home Equity Line is a quick and easy process, much less so than a commercial loan.
4. Credit Cards-Not always the best option, but it will at least get you the capital that you need to get started. Make sure you shop around for the best deal and have a plan for repaying it. Its probably easier to do this on the personal side as well and then just make a loan to your new company for the amount that you put on the card.
5. Bank Loan-I know we already talked about this being a tough option, but if you go into the bank with a plan, you can probably get them comfortable. Just be aware that you are going to have to do some bending to get them comfortable. If you can get them to consider doing the loan, then its all negotiation at that point. They might insist on convenants, shorter terms, or pledging of all available personal assets.
Hopefully these tips can help get your small business off and running!

While buying a used car you can not only save thousands of dollars in depreciation, taxes and factory costs, but also wind up spending more on your financing. As new car manufacturers lure buyers with 0% interest rates and no-money-down offers, it’s hard to find a better deal when you’re purchasing a used vehicle. If you’re planning to buy a used car, keep reading for some financing tips that will save you money. 1. Shop Around for a Better Rate If you need to obtain financing for your used car purchase, try shopping around for the best rate. While the dealership may often offer you a good financing option, you should to check with your bank and other lending institutions to see if they can do better. Other car financing options that may get you a better rate include a line of credit, which can sometimes be as low as 5%, or simply offer a low-interest home equity line of credit loan from your lending institution. A slight drop in the interest rate can save hundreds – sometimes thousands – of dollars over the life of the loan, so this is a worthwhile investigation. 2. Be Ready to Walk If you’re obtaining financing directly through the used car dealership and you’re not happy with the offered rate, be ready to politely walk away from the deal. Most dealerships would rather lower their interest rate by a half point or full point than see a potential sale walk through the exit door – especially in tough economic times like today when gasoline prices are so high and car sales are low. Additionally, if you are able to wait until the end of a month to buy from a dealer, you may have some additional leverage with salesmen who are under pressure to meet a monthly or quarterly quota. 3. Pay in Cash The best way to save on financing costs is to avoid financing and credit all together. If you can do it, pay in cash. Let’s say you’re buying a five-year-old Civic for about $10,000 – that can be saved up in a year at a rate of about $833 per month or two years at $416 per month. Rather than taking out a car loan, put that money in a high interest-yielding savings account and you’ll reach your goal even faster. 4. Pay it Off Fast If you can afford to do it, the faster you pay off your car, the less you pay in interest and financing costs. While it would be unwise to stretch your family budget too tight in an effort to pay off your vehicle, you should avoid long-term financing that drags on for four or five years. 5. Refinance Down the Road Let’s say you need a new used car this year but you’ve just put money in the house, perhaps had a baby, had a dip in your credit rating and money is tight. Well, you might accept a higher interest rate now, but in a year – once things improve – you should investigate the prospect of refinancing that loan with another lending institution that can offer you a lower interest rate.