I want to get $20,000 to start a home-based business. I don't own my own home, my car is only worth $2,500, but I have a great credit rating and credit cards at my disposal. What do you figure the best way to come up with the $20,000 would be? Cash advance from the credit card? Try to get a personal loan from a bank? Or what?
2006-12-14 08:48:36 · 8 answers · asked by ? 3 in Business & Finance ➔ Personal Finance
I am very financially conservative so my advise may surprise you a bit. I would suggest looking into an SBA loan or personal loan but without any secondary sources of repayment it may be tough for you to qualify...contact you local bank and ask them for information on any SBA classes that may be available in your area to help you with your business plan and SBA loan application (it is a very extensive process...but a good tool to think through your business even if you don't go the SBA route). Another good source is family. If that's not possible I would encourage you to seriously think about how passionate you are about the endeavor you are considering. Of course no one goes into business thinking they will fail but a very high percentage of small businesses do fail. If this is your life dream however I would advise you to raise the cash however you can even if that means you need to draw on your credit cards. You only have 1 life to live and if this is really what you want and you feel you have a competitive advantage over your competitors then I say go for it and a good luck.
2006-12-14 11:31:46 · answer #1 · answered by SmittyJ 3 · 1⤊ 0⤋
Never ever ever borrow that much from a credit card as a cash advance. You'll end up paying about 25% interest, probably. Read the fine print on your statements to see what the interest rate is for cash advances. It's always sky-high. Borrow from the bank, if you can.
2006-12-14 08:51:50 · answer #2 · answered by bibliophile31 6 · 0⤊ 0⤋
Do you have a business plan? If not WRITE ONE FIRST. Not only will this increase your business's chance of success, but with it you can go to a bank for a business loan. If they are not interested in your business, then go for the personal loan. Here's a couple sites you should visit and good luck!
2006-12-14 08:56:01 · answer #3 · answered by Anonymous · 0⤊ 0⤋
cash advances are the stupidest things. Don't do that. they start charging interest as soon as the money is off your card and trust me it adds up fast!
go to the bank and try to get a loan....if you have good credit you shouldnt be denied!
best of luck!
2006-12-14 08:51:30 · answer #4 · answered by Anonymous · 1⤊ 0⤋
There is a new place on the web for just this sort of thing. Follow the link below and it will take you to my Group. If your are interested we can endorse your idea and you may be able to get funded. Good Luck!
2006-12-14 13:05:41 · answer #5 · answered by RichDaddy 2 · 0⤊ 0⤋
No to credit card.
No to personal loan from a bank.
Yes to borrowing from family.
Yes to waiting until you have saved that much so you can pay cash.
2006-12-14 08:51:12 · answer #6 · answered by Texan 6 · 0⤊ 0⤋
I would suggest a small business loan. Check out smallbusinessloans.com for more info.
2006-12-14 08:52:02 · answer #7 · answered by Dan 3 · 0⤊ 0⤋
hera r ur options
a) steel ( u may not want to do tht!) jking
b.) brw from reletive
(wrk hard and make your own money and then brw more frum ur parnts.
2006-12-14 08:59:12 · answer #8 · answered by Anonymous · 0⤊ 1⤋