As some of you know, earlier this year a friend and I started a small business venture with a direct sales company. Unlike some companies where the sales of the merchandise are purchased through a website or catalog, the one we are working requires consultants to purchase the inventory outright at wholesale, to have on hand. We researched a few ways to fund a small business start up; a vehicle and title loans El Paso, a no interest credit card, and a loan against a 401K were some of the options we saw.
When calculating the rate of return on the money we were investing, we ended up dipping into some savings that we had. People who want to start a small business like we did but don’t have that amount in savings or have a poor credit score might find it a bit more difficult to find the funds to start up. The resources may seem just out of reach for them, but there are ways to get funds to pay off debt or just have extra income.
Getting a small business loan is no easy task, but borrowing against collateral you already own is one way to do it. Auto Title Loans are one way of doing that. Always be sure to read the fine print when finalizing any loan agreement from any lender to make sure you understand what you are agreeing to.
A no interest credit card is another way to fund a new business venture. Many cards have an introduction rate of 3 to as many as 9 or 12 months of no interest on balance transfers and/or charges. If you know you can pay off any purchases placed on the card before any interest fees kick in, it’s a great way to float some money to get up and running.
Of course you can always ask a relative to be a silent partner in your venture and invest some of the needed funds, or check out a home equity line of credit if you own your home.
However you decide to fund the start up of your new business taking the time to talk to a CPA or tax attorney to get the necessary paperwork is a good first investment of your borrowed money. They will help you repay any loans as quick as you can and hopefully maximize your tax deductions for any interest and fees paid toward them as well.