Finance Your Home Business: Six Ways Under Your Nose
There are lots of ways to get additional capital to expand a home-based business. But before you look outside for financing, leaving the decision about your company's progress and merits to someone else, consider these six ways under your nose to finance your home-based business:
Savings are easy to tap and involve no paperwork.
The negatives: if you use the money in your business, it eats into your safety reserve and is no longer there for emergencies. It diverts funds from a very low risk investment to a high one.
Whole life policies accumulate tax-deferred cash value that you can tap for your business. But the only way you can tap this cash without paying taxes is to borrow against your policy. As long as you keep your policy intact and pay premiums when due, loans remain tax-free.
The negatives: you will be converting a low risk investment into a high one; if you decide to terminate your policy or if you default on repaying your loan, taxes will be due on all cash value accumulated under the policy; if you die before your loan is repaid, any distributions to your beneficiaries will be reduced by the amount of your outstanding loan.
A Loan from Your 401-K Plan
You can borrow up to $ 50,000 of the money you have saved under many 401-K plans. There are no credit checks. Interest is usually a percentage point or two above the prime rate and the interest that you pay back to the plan will be tax-deferred to the plan. Most loans are repayable out of salary deductions over five years.
The negatives: you will have less money invested toward retirement; the dollars used to repay the loan will be after-tax dollars withheld from your paycheck; if you fail to repay the loan, the IRS considers your failure a premature distribution -- you will be charged taxes on the borrowed amount plus you may be assessed a 10% early-withdrawal penalty.
A Home-Equity Loan
These loans do require that you apply and be reasonably credit worthy. You generally can borrow up to 80% or 90% of the equity value of your home. Interest on these loans is generally tax-deductible.
The negatives: you will reduce the equity value of your home by the loan amount; you will be diverting funds from a relatively safe investment to a high risk one; if you default, you put your house at risk of foreclosure. Think very carefully before using this form of financing.
Personal Credit Lines and Credit Cards
They are convenient, versatile forms of financing. You can borrow and re-borrow up to the line limit as needed.
The negatives: you will pay relatively high interest rates-- rates range from 12% to over 18%; the minimum monthly payment on many of these arrangements will repay the outstanding balance within 42 months; it is easy to dig yourself deep into debt using credit lines and credit card debt; high outstanding balances against your line can negatively impact your personal credit rating.
A Margin Loan
You can use margin loans for purposes other than buying additional securities.
Any margin loan will be secured by your equity shares. Rates are often below prime, applying is relatively easy, and these loans have very flexible repayment terms.
Loans are initially limited to 50% of the purchase price of your equity securities. Loan repayments are triggered when the value of your stock falls below the margin limit.
The negatives: Because borrowings are predicated on volatile stock values, a margin loan can be a risky proposition; if you default in repaying, the brokerage firm can sell your securities to satisfy the loan; an untimely sell-off can have a devastating effect on your portfolio and negative tax consequences.
The only safe way to consider a margin loan to finance your home-based business is to limit advances to a relative low ratio of your stock portfolio value - say, 25% or less.
Most of these financing methods are under your control and don't require business plans or company financials to qualify. Although each of these methods has risks and disadvantages, so do most external methods of financing. Before proceeding with one of these financing methods, carefully consider the potential benefits, risks and consequences. Whatever you decide, it helps to know the options right under your nose.
George Parker is a Director and Executive Vice President of Leasing Technologies International, Inc. ("LTI"). He is responsible for overseeing the company's marketing and financing efforts. One of the co-founders of LTI, Mr. Parker has been involved in secured lending and equipment financing for over twenty years. Mr. Parker is an industry leader, frequent panelist and author of several articles pertaining to equipment financing.
Headquartered in Wilton, CT, LTI is a leasing firm specializing nationally in direct equipment financing and vendor leasing programs for emerging growth and later-stage, venture capital backed companies. More information about LTI is available at http://www.ltileasing.com.
Marriott workers' lawsuit says inconsistent schedules and credit union loans are a predatory mix - Philly.com
Marriott workers' lawsuit says inconsistent schedules and credit union loans are a predatory mix Philly.com
Hourly Marriott workers in Philadelphia are in the midst of a lawsuit against the Marriott Employees Federal Credit Union, saying that the credit union's $500 ...
All the Ways You Can Get Your Student Loans Forgiven Lifehacker
With the average student loan balance hitting $29800 for the Class of 2018, you're probably looking for any help you can get paying off your debt. And if you ...
Regulating Payday Loans The New York Times
A reader says a well-intentioned regulation could actually harm those of limited means for whom these loans are a last resort.
Croatia central bank warns about risks of rising cash loans Reuters
Croatia's central bank is concerned about a recent sharp increase in cash loans and may introduce measures to limit those risks, it said on Monday.
SBA Loans: December 2018 BizTimes.com (Milwaukee)
The U.S. Small Business Administration approved the following loan guarantees in December: Kenosha County D & A Fleming Properties LLC, 6127 Green Bay ...
No-interest loans help individuals, small businesses succeed in Cleveland News 5 Cleveland
It wouldn't have been possible without a no-interest loan from HFLA of Northeast Ohio. Younger already owed a lot of money and other lenders likely wouldn't ...
NY Fed says auto loan delinquencies at highest point since 2010 WPTV.com
DETROIT (AP/WPTV) — Borrowers are behind in their auto loan payments in numbers not seen since delinquencies peaked at the end of 2010, according to the ...
Burden of student loans cause depression, problems for young adults KCTV Kansas City
American student loan debt totals more than $1.53 trillion, according to the Federal Reserve.
The risky 'leveraged loan' market just sunk to a whole new low Business Insider
This is why Mark Carney is comparing corporate credit to the subprime crisis of 2008.
Expensive loans to desperate people built this $90 billion industry GazetteNET
NEW YORK — During the recent government shutdown, U.S. Secretary of Commerce Wilbur Ross wondered aloud why financially stressed federal workers ...
Car Loan Delinquencies Reach New High NPR
Economic pessimists seized on new data indicating an increase in car loan delinquencies as evidence of a looming recession, but a downturn is likely simply ...
Fight Substance Abuse, Get Your Student Loans Paid Forbes
A federal agency will help pay down your loans if you commit to fighting substance abuse.
More Americans are behind on their car loans than ever before CNN
More than 7 million car loans were past due by at least 90 days in the fourth quarter, according to data released this week from the New York Federal Reserve.
Why did your mortgage lender sell your loan? Las Cruces Sun-News
If you've ever taken out a mortgage, there's a good chance the lender who made the loan to you sold it to another bank or investor. Why?
A GOP proposal could snatch your student loan payment right from your paycheck MyTwinTiers.com
Student loan borrowers would have their monthly bills automatically deducted from their paychecks if a Republican-backed proposal becomes law.
Morgan Lewis Principal Weighs In On Payday Loan Debate pymnts.com
As the CFPB has released an overhaul of payday loan regulations, Morgan Lewis Principal Nicholas Gess weighs in on the payday lending debate.
Elections Coming, Greece Will Subsidize Bad Mortgage Loan Payments The National Herald
With Prime Minister and Radical Left SYRIZA leader Alexis Tsipras reneging on promises to help beleaguered homeowners during a more than 8 ½-year long ...
China stocks jump on trade talk hopes, strong loan data CNBC
SHANGHAI, Feb 18- China stocks jumped on Monday after trade talks between the United States and Beijing saw progress ahead of a March 1 deadline, and ...
This start-up is bringing fast home equity loans to your smartphone bank app CNBC
Blend's *service* is the latest example of a tech start-up working with banks, rather than competing against them, to bring easier-to-use digital services to the ...
US secured bond sales jump as red-hot loans cool Financial Times
Corporate borrowers are following the flow of money away from leveraged loan funds.
FSA audit: Oversight of U.S. student loans lacking UPI.com
The U.S. Department of Education's student loans unit failed to oversee and hold accountable the companies it pays to manage the nation's student loan debt.
UPDATE 1-Italy govt to seek renewal of bank bad loan scheme-govt official Reuters
(Adds details, comments from sources). MILAN, Feb 18 (Reuters) - Italy's government will seek to renew a state guarantee scheme designed to help banks shed ...
Ex-Workers Get More Time to Repay 401(k) Loans Kiplinger's Personal Finance
If you leave your job while you have an outstanding 401(k) loan, Uncle Sam now gives you extra time to repay it thanks to the new tax law.
Trade War Update: China Exports Up, Loans Up And U.S. Investments In China Up Forbes
Meanwhile, trade negotiations continue as China hopes to outlast Trump's tariff push.
DBS forecasts stable loan growth this year after record 2018 profit Yahoo Finance
DBS Group Holdings Ltd, Southeast Asia's biggest lender, forecast stable loans growth for 2019 after a robust increase in net interest margin drove an 8 percent ...
Payday Loans Are No Worse Than Avocado Toast Forbes
The CFPB is proposing es to rescind key provisions of its 2017 payday lending rule. Good. The old rule threatens to starve millions of hard working Americans ...
India’s Sleepwalking to Trouble on Builder Debt Bloomberg
Generous loan terms, indolent construction and a lack of market discipline have shielded the nation's developers. That's changing.
Son of Mozambique ex-president arrested in loans scandal Financial Times
Loans financed tuna fishing fleet but funds diverted to kickback, say US prosecutors.
Punjab Budget Live: Loans of farmers who committed suicide to be waived The Tribune India
Tribune News *Service* Chandigarh, February 18. Punjab Finance Minister Manpreet Singh Badal presents the third budget of the Capt Amarinder Singh ...
Bad loan manager Fire to boost assets as it considers IPO: CEO Reuters
Italian bad loan investor Fire is looking to add 1 billion euros ($1.1 billion) in assets under management this year as it works towards an eventual stock market ...
European bank loans some $19M to Turkish firm Anadolu Agency
Non-performing loans firm Hayat Varlik to buy new distressed portfolios from local lenders, financial institutions - Anadolu Agency.
Personal loans 101: How they work and who can qualify for them INSIDER
Unlike credit cards, personal loans offer a fixed interest rate, fixed repayment term, and fixed monthly payment. Read on to learn more.
Federal government not forgiving student loans for Americans working in public service for a decade - KSHB
Federal government not forgiving student loans for Americans working in public service for a decade KSHB
The federal government is not forgiving student loans for thousands of Americans working in public *service*.
BoG chief convenes meeting over loan to gov't official | Kathimerini www.ekathimerini.com
Bank of Greece Governor Yannis Stournaras has called an emergency meeting with officials from Attica Bank to discuss a controversial loan that was issued by ...
Student loan debt in 'serious delinquency' hits $166 billion New York Daily News
Student-loan delinquency rates accelerated last year, topping out at $166.4 billion in the fourth quarter.
Club Loans Tommy McCabe to North Carolina FC FC Cincinnati
CINCINNATI – FC Cincinnati have loaned midfielder Tommy McCabe to North Carolina FC. FC Cincinnati announced the signing of McCabe – along with four ...
Non-Banks Need To Be More Transparent About Their Leveraged Loans And Other High-Yield Exposures - Forbes
Non-Banks Need To Be More Transparent About Their Leveraged Loans And Other High-Yield Exposures Forbes
Non-bank financial institutions' and banks'risks are increasingly interconnected. GettyGetty. As part of its role to monitor systemic risks around the world, the ...
How To Never Get Rejected For Student Loan Forgiveness Forbes
You've read the headlines: 99.5% of people were rejected for student loan forgiveness. Here's what to do about it so you never get rejected for student loan ...
Wall Street Sees No Evil as Junky Loans Surpass $1.3 Trillion TheStreet.com
The Federal Reserve is sounding alarms on the growing risks from loans to companies with poor credit ratings. So are the International Monetary Fund, ...
Want a loan? Better not mention you’re a vegan The Guardian
NatWest has apologised and paid compensation after a woman seeking a loan for a vegan nutrition course was told 'all vegans should be punched in the face'
SBI to waive loans taken by slain CRPF personnel; to expedite insurance payments Economic Times
NEW DELHI: State Bank of India Monday said it would waive all outstanding loans taken by 23 CRPF personnel who were killed in the Pulwama terror attack.
Over 60, and Crushed by Student Loan Debt The Wall Street Journal
Older Americans are struggling under the burden of student loans—their children's and their own.
DBS profit driven by loans as turmoil hurts wealth, trading - Business News The Star Online
SINGAPORE: DBS Group Holdings Ltd. relied on lending to boost fourth-quarter profit as financial-market turbulence hit its trading, wealth and investment ...
Report takes aim at Texas auto loans, which top the nation Houston Chronicle
It's a trope, but true: Everything is bigger in Texas, including the car loans. Texans borrow a nation-leading $6,520 per capita for automobile purchases, ...
Consumer Protection Bureau Cripples New Rules for Payday Loans The New York Times
Payday lenders won a major victory on Wednesday after the Consumer Financial Protection Bureau moved to gut tougher restrictions that were to take effect ...
What Credit Score Do I Need for a Home Loan? Yahoo Finance
You can get a home loan with a surprisingly low credit score, but there's good reason to aim higher.Image source: Getty Images.
Seven Million Americans Delinquent on Auto Loans Could Be a Bad Sign MSN Autos
Think about the impressive number that is $1.3 trillion. That's the total amount of auto-loan debt in the United States today, representing a $584 billion increase ...
Wilbur Ross says government employees should just get loans, but it's not that easy CNBC
Here's the help major banks are offering to government workers affected by the shutdown.
Norway Sets Credit Limits for Booming Consumer Loan Market Bloomberg
Norway stepped in to limit the growth of high interest rate consumer loans and credit card debt to protect the economy from ballooning household leverage amid ...
Witness: Mangano played key role in Singh's loans Newsday
Edward Mangano played a key role as Nassau county executive in securing Oyster Bay's backing for millions in loans for Harendra Singh that prosecutors ...
Young People Are Doomed by Student Loans, Not the National Debt VICE
Rich old people love to freak out about the budget deficit. They are ignoring a much bigger issue.
Consumer crunch: Banks set to crack down on credit cards, car loans Sydney Morning Herald
Banks may make it harder for consumers to get car loans, credit cards and personal loans under proposed rules from the corporate regulator.
For desperate Americans considering a payday loan, here are other options MarketWatch
Consumers have many alternatives when it comes to payday loans — many of which offer lower interest and other benefits.
Government loans helping north Simcoe businesses get started Simcoe.com
Group of local businesses can thank North Simcoe Community Futures Development Corp. for helping them get off the ground.
Kuwait approves $2bn loans to Africa Journalducameroun.com - English
Published on 18.02.2019 at 10h21 by APA News. Share. Kuwait has approved $2 billion as grants and concessionary loans to African countries, the ...
China’s private firms going bankrupt after guaranteeing others’ loans South China Morning Post
Banks reluctant to lend to non-state sector without a guarantor, so cross-guaranteeing is common and one bad loan can trigger multiple defaults.
TSP will allow participants to take loans during next shutdown Federal News Network
The Thrift Savings Plan will allow its participants to request a loan during future government shutdowns, giving federal employees a potential option to alleviate ...
Prominent Republican wants to take student-loan payments out of your paycheck MarketWatch
Senator Lamar Alexander of Tennessee floated the proposal as part of a speech outlining reforms to the student-loan system.
Witness: Singh loans were a 'sham and not legal' Newsday
Jonathan Sinnreich, who served as Oyster Bay's outside counsel, said he objected in 2010 to helping the deputy town attorney draft amendments to two of ...
Proposed change to federal student loan program could make payments automatically withheld - KEYE TV CBS Austin
Proposed change to federal student loan program could make payments automatically withheld KEYE TV CBS Austin
The tuition freshman Cameron Pierrotti pays at the University of Texas is about $40000 a year. "I'm from Louisiana, so I came here out of state," he explained.
'It's A Dog Fight': Banks See Increased Competition For Construction Loans Bisnow
Lenders say the construction financing landscape has become increasingly competitive, leading some questionable projects to receive loans.
How One Woman Paid Off $110000 In Student Debt Before She Turned 30—Without Sacrificing Her Social Life - Cosmopolitan.com
How One Woman Paid Off $110000 In Student Debt Before She Turned 30—Without Sacrificing Her Social Life Cosmopolitan.com
The totally doable way one woman crushed her student debt—and still had a life.
Purdue offering income-share agreements as way to pay off student loans WGN TV Chicago
Purdue University has a creative new way for its graduates to repay their student loans. It's called an income-sharing agreement. Graduates will make payments ...
Student Loans Becoming a Retirement Issue Wall Street Journal
Parents are better off dealing with the temporary tears of a teenager unable to attend a high-cost dream college.
Low-Interest Loan Options for Furloughed Federal Employees U.S News & World Report Money
When you're living paycheck to paycheck, missing one pay period because of a work furlough can derail plans for your budget and overall financial health.
Slippery slope? Unconventional home mortgages are on the rise The Real Deal
Unconventional mortgages — the likes of which were criticized for their role in the financial crisis — are making a comeback. These loans are aimed at buyers ...
Quicken Loans launches new Rocket Mortgage logo Crain's Detroit Business
Quicken Loans Inc. has a new logo for its Rocket Mortgage product, and there are no rocket ships involved. The Detroit-based mortgage lender, which debuted ...
These were the 10 largest Manhattan real estate loans in January The Real Deal
The top 10 Manhattan loans recorded in January totaled just over $2.9 billion, staying more or less flat for the third straight month.
Student Loan Relief or Paid Vacation? These Workers Get a Choice Bloomberg
Starting next year, U.S. employees at insurance company Unum Group will have a choice: The company will put money toward their student loans, if the worker ...
Revealed: How insiders' loans fraud sank Chase Bank The Star, Kenya
Former Chase Bank Kenya chairman Zafrullah Khan awarded himself a three-year consultancy contract for unspecified projects in the bank, 16 months before it ...
Your 2019 Guide to the Student Loan Interest Deduction Motley Fool
If you make student loan payments, here's what you need to know about the tax benefit you may be entitled to.
Guan Eng urges banks to give cheaper loans to SMEs New Straits Times
KUALA LUMPUR: Finance Minister Lim Guan Eng urged banks to extend cheaper loans to small and medium-sized enterprises (SMEs) to ease the cost of doing ...
January’s Stock-Market Rally Revives Appetite for Risky Margin Loans The Wall Street Journal
Margin debt tumbled with shares in December, but a rebound last month indicates investors' taste for risk is recovering.
Heavy Student Loan Debt Forces Many Millennials To Delay Buying Homes NPR
The Federal Reserve says the big increase in student loan debt is creating a noticeable dent in younger people's ability to buy homes. But economists say ...
How to Deduct Student Loan Interest on your Taxes (1098-E) U.S. Department of Education
If you made federal student loan payments in 2018, you may be eligible to deduct a portion of the interest paid on your 2018 federal tax return. Learn more about ...
Unconfirmed: Novogratz’s Galaxy Digital to Raise $250 Million to Offer Crypto Loans Cointelegraph
News. Mike Novogratz's crypto merchant bank Galaxy Digital is reportedly raising at least $250 million to offer loans to crypto-related firms, according to an ...
BayCoast Bank promotes Silva to first VP of loan operations Taunton Daily Gazette
SWANSEA/HALIFAX - BayCoast Bank is pleased to announce that Nancy L. Silva of Halifax has been promoted to first vice president/loan operations.In this role ...
Tax refund advance often too good to be true: What to know Detroit Free Press
Demand for tax refund advances could go up, thanks to the government shutdown. But read the fine print carefully and watch out for high tax prep fees.
Guide to Secured Loans
Here is a useful guide to secured loans. A secured loan is a loan that a lender provides on the understanding that a property is secured against the loan.
First Time Buyer Mortgage -Key to your First Home
Living in a rented apartment since long. Ever thought of the disadvantages of staying as a tenant.
Should You Get A Pay Day Loan?
Whether you have good credit, bad credit or no credit, you are still eligible for pay day loans. Pay day loans come in all shapes and sizes.
Guide to Personal Loans
Here is a useful guide to Personal loans. What is a personal loan? A personal loan is money lent to an individual by a financial institution for a specific personal purpose.
The Average Profile of Customers Opting for a Payday Loan Cash Advance
Payday loans are loans of a small amount, taken for a short duration of time. Payday loans are generally meant to be paid off on the next payday.
SBA Loan: Qualifying and Applying
According to federal government research, small businesses provide about 75% of the net new jobs added to America's economy. They also employ fully one-half of America's private sector workforce.
Boat Loans - Steering Way Towards a Bon Voyage
In the full moon night, on a lovely morning you would like to take your craft, your boat where the cool wind blows. How it steers slowly along the fine film of transparent blue waters.
See What Your Home is Worth
If you thought your home is worth nothing except for living purposes, then think again. It might be holding a treasure, still waiting to be explored.
UK Loans Guide - Channelising Your Rising Budget in a Productive Mmanner
Every unknown road needs a milestone to configure where it leads. Every loan type in UK requires a guide to steer through the loans market.
What are Personal Loans?
As the term implies, Personal loans are simply loans for any personal use. They're known as personal loans because the money is for personal use, such as buying a car or home improvements.
Where to Get Your Military Signature Loan
Military signature loans are easy to come by. When looking for a military signature loan you might even get overwhelmed by what seems like an endless supply of lenders, APRs and added perks.
Online Payday Loans Offer Quick or Instant Approval For a Fast Cash Loan
Online payday loans companies offer quick approval with their online application process. Once you have entered your personal information and source of income, you can be approved for a payday loan in as little as five minutes, and a cash advance can be deposited in your checking account the next day.
Short Term Loans...are they right for you?
With less than a week before she was to receive her next paycheck, Roni was faced with a problem that millions of Americans experience at some point in their lives: bills that are due and not enough cash available to pay them. Faced with a dilemma of late fees and a lower credit rating, many consumers with no options left turn to credit card advances as a stop-gap resolution for their problems.
Lions and Loans: Why Finance Should Always be Personal
Different types of loans are available for almost every aspect of your life: personal loans, car loans, secured and unsecured loans, home loans, homeowner loans, student loans, graduate loans and career development loans (CDL). If you've suffered from credit problems in the past and now hold sub-prime characteristics, then you will be eligible for adverse credit and adverse loans.
If You're Looking For Low Cost Car Finance, Loan Companies Offer Some Great Deals
These days having a reliable and safe vehicle to drive is more important than ever. With public transport packed to the hilt and often unreliable, many people have learned to rely on their vehicles to get to college or work, pick up the kids, do the shopping and even to perform their jobs.
Devising Newer Ways of Repayment
How good would it have been had there been no obligation to repay the loan or mortgage? This is what most people think when required to make the monthly repayments. But try as much as they can, they are never able to change the situation.
Finding an Auto Loan with Bad Credit
Finding an auto loan online is easy regardless of you credit score. By simply completing a simple one page application hundreds of online lenders who will compete for your loan business.
Applying For a Student Loan
Studying at college can be an expensive business and you are likely to be considering taking out a Student Loan to help you meet all our costs. Before you make a decision on which of the thousands of Student Loans that are available is right for you it is important to weigh up all your options.
Student Loan Limits Not Keeping Up with Tuition Rates
As tuition rates at many colleges continues to rise, the limits that students may borrow each year has stayed the same.Dependent undergraduates may borrow up to $2,625 their freshman year, $3,500 their sophomore year and $5,500 for each remaining year in Stafford Loans.
Bad Credit Business Loans - to Exchange Bad Credit for Monetary Benefaction
You want to raise a business on your own or you want to expand it further. You have a plan and the vigour to make your mark in this field.
|home | site map|
|TIGER MEDIA© 2006|