Harmony


Hello

Do you think it is a good idea to use a home equity line of credit to expand business?

Harmony,
With prime expected to be on a downward trend, this money will get cheaper as you use it. It tends to be easier to get these loans as compared to an SBA loan as well. I would just make sure that you have your costs down and set a payment plan to payoff the equity line. But with most being interest only required payments, you have access to more cash with a limited outward cash flow which is ideal. In addition, you can write off the interest that you are paying if it is your primary residence. Therefore, your real interest rate should be realistically close to half of what your note rate is. Not a bad option.

Best of luck-

chris

If you have equity in your home, you may be able to obtain a business loan using the equity as collateral. This may be adventageous for bookkeeping, accounting purposes and tax purposes.

Do you have a specific equipment need or just working capital? If you'd share additional details about your business and financing needs, I may be able to assist you.

Why put your house up as collateral? That is very risky. Have you heard about Unsecured Business Lines of Credit? They are in your businesses name(don't effect personal credit) and don't require that you risk your home. I have some info if you need it.
Rich LaMonica
rlamonica@hsfgloans.com