Equity in your home to start a business

[thohome]

If you are thinking of using the equity in your home to start a new business be sure to cover all the bases and be sure its the best thing for you to do.

The equity in your home can be a valuable tool for starting a new business or for providing additional financing options to cover your existing business needs.

Start-up Businesses
Although the SBA (Small Business Administration) is available to aid new businesses, qualifying can still be difficult and most lenders are looking for a business to be established a few years before they will consider offering a business loan. Those of you who feel you have bad credit or fair credit may want to stay away from the business loans for now. The lack of time in business, plus higher credit requirements, will greatly affect the decision made on the loan.

Using your assets to help your business
By Alan Galatian

I would be so scared to lose my home if the business doesn't pan out. I would really have to think hard about going this route in starting a business. But if you feel the business is worth the risk you might want to go this route.

[flip_it_fast]

I too would be really afraid of losing my home if the business failed. I don't know if I could feel comfortable going this route with the sinking economy. I guess if you feel that it's a sure thing then by all means go for it. I would certainly suggest taking a long hard look at all of your options first though.

[flippinout]

I am not sure that I would even consider this route in todays economy. The possibility of loss of my home would be too great to even consider this, but as a last resort, some might consider it a good idea.

[badmomma]

I too am unsure of doing this. It is not a good idea you may
need that equity to bail you out if your business doesn't do
well. You should really consider some other options first. If
all else fails then maybe then but never use all of your homes
equity for anything.