Please note, this post is sponsored by Diamond bloggers. All opinions expressed are my own. Thank you.
While you can start a home business on a budget, it’s not likely you’ll build a profitable one without incurring some expense. Especially for the self-employed. Which makes taking the previous five elements into consideration as you are calculating your startup costs. Everything from the amount of money you need to open up shop to daily petty cash funds. While it’s okay if you don’t know specific costs, but you want to get as close as possible, perhaps even over-estimate expenses.
Once you have your financial cost list in-hand, look for ways you might be able to cut costs and fund your business without going in debt. And always remember to factor in expenses such as how much will you need to pay your bills until the money starts coming in from your home business. Will you be keeping your full-time job or is there another breadwinner in the family that can help you until you develop an income stream? As you move closer to starting your business, keep a tally of expenses you didn’t anticipate and add them to your list.
And as the old saying goes, it takes money to make money, look for funding sources for your business that ideally won’t put you in debt. All important factors to financially consider when starting your own at-home business this season at home. This is why many small businesses may need to turn to lenders to help make their business goals a reality this season. Three types of business loans small businesses may want to consider include:
Term loans from Associates Home Loan
A term loan is a common form of business financing for those seeking self-employment loans. for the purposes of home buying or business-centric loans. You get a lump sum of cash upfront, which you then repay with interest over a predetermined period. With various online lenders offer term loans with borrowing amounts up to $1 million and can provide faster funding than banks. The pros of these types of loans include access to upfront funding to invest in your business, typically higher borrowing amounts, and faster funding provided borrowers utilize an online lender rather than a traditional bank. As online banks typically distribute funds within a few days versus up to several months with traditional banking facilities. But do keep in mind that term loans may require a personal guarantee or collateral to secure funding and terms costs can be high. These types of loans are best for small businesses looking to expand practices and operations as well as borrowers who have good credit and a strong business and who don’t want to wait long for funding. Such as lending houses such as AstroFlipping.
StreetShares loans
StreetShares loans are a funding source guaranteed by the Small Business Administration, offered by banks and other lenders, that allow borrowers terms of repayment based on the loan’s funding will be used. Typically ranging from 7-10 years for buying equipment and 25 years for real estate purchases. Some of the benefits of these types of loans include some of the lowest interest rates on the market, high borrowing amounts, and long repayment terms. But as might be expected, these loans are harder to qualify for and require a longer and more rigorous application process. Making these loans a better option for small businesses looking to expand or refinance existing debts, borrowers who can wait for longer periods prior to funding disbursement, and borrowers with established businesses of 4 or more years.
Business lines of credit
A final type of funding that might be a great benefit to small business owners this season may be lines of credit. A business line of credit provides access to funds up to your credit limit, and you pay interest only on the money you’ve drawn. It can provide more flexibility than a term loan and is typically unsecured, so no collateral required. However, these types of loans may carry additional costs, such as maintenance fees and draw fees, and often require better credit scores to qualify. These types of loans are best for small businesses looking to finance short-term financing needs, managing cash flow or handling unexpected expenses, or for businesses that are seasonal in nature.
Friends, not only do you need money to start, but you’ll need money to stay open. The goal is to earn enough to cover your operating expenses and make a profit. With this in mind, how will you better financial plan for your own at-home business or home buying expenditures this season? Leave your plans and tips in the comments below!
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