Financing your own business

[CJ]

If you were starting your own business and needed around $150K, how would you finance it? What are some of the pros and cons of SBA loans, commercial loans, home equity loans etc?

[G-Benz]

Originally posted by narwhal
Home equity loan would be next to crazy.

CJ:

Yo probably just mentioned this as one of the "what ifs", but know better.

First rule of thumb with starting your own business: NEVER mix your personal assets with your business assets!!!

Otherwise if your startup goes under, your creditors can't seize your house, cars, children, etc...

[Kuan]

How you ask CJ? You sell your Cobra.

[CJ]

Why would a home equity loan be crazy? If things are slow you can make interest only payments.

[84300DT]

Originally posted by CJ
If you were starting your own business and needed around $150K, how would you finance it? What are some of the pros and cons of SBA loans, commercial loans, home equity loans etc?

you could just tell your friendly banker that you have a
1974 TLJ Special Edition THE ONLY ONE IN EXISTENCE!!!
as collateral


and they will bring you a sack of $$




seriously - the others are steering you right - do not borrow against your house for the 150k. also make it a "LLC" or an "Inc."
type operation if the business would have any liability exposures at all. that way you could minimize your personal risk.

[ptoro01]

Otherwise if your startup goes under, your creditors can't seize your house, cars, children, etc...

Instead of having your kids taken, sell them to finance your business. Some countries pay top premium for men ages 15 to 25 with a healthy dental record and good eyes. But if they are younger, child labor is the next best thing.