In a perfect world, when a prospective business owner is ready to purchase a business they simply would head to their local bank and ask for a business loan.
Though it’s a nice thought, the real world works a little differently. Almost all startup businesses need to seek funding through external sources. Though obtaining funding can sometimes be complicated, no one should be dissuaded from pursuing their dreams simply because they aren’t sure where they can obtain funding. The truth is there are a number of ways that smart entrepreneurs obtain funding in order to kickstart their plans and set their dream into motion. Here are 5 of the most practical methods of acquiring “fast cash” that can work to fund your project.
1. $150K Working Capital Loan
The United States Small Business Administration (SBA) offers working capital loans of up to $150,000 in order to assist small businesses when they need it most.
2. Home Equity Loan
Home equity loans allow borrowers to take out money using their house as a guarantee of repayment. If you own a home, (especially one with a good loan-to-value ratio,) then you stand to benefit from a home equity loan.
3. IRA rollover
If you have an IRA (Individual Retirement Account,) you most likely will be able to use this money in order to fund your business ventures.
4. 401(k) rollover
Much like an IRA, a 401(k) can also be tapped into in order to acquire funding. Though there is usually some type of fee for taking money out of a retirement account early, these losses can be offset enormously by the future success of your new business.
5. Stock Portfolio Loan
A stock portfolio loan is a great way to tap into the value of your investments without selling them. With this kind of loan, you simply place your fully-paid securities as collateral, and obtain funding immediately.
When working with Franchise Logic, part of the educational process is connecting you with real funding resources that understand all the rules and regulations surrounding self funding. Ready to take the next step towards business ownership and true independence? Contact Careyann Golliver today! just visit www.franchise-logic.com or call 303.359.4021.