advisor told that home equity is better. What do you think? Give me some advice.thanks
2007-07-17 06:27:12 · 2 answers · asked by Huynh T 2 in Business & Finance ➔ Small Business
A home equity loan is probably easier to get if you have enough equity. The downside there, of course, is if you don't pay it back, you can lose your home. A home equity loan might have a lower interest rate than an unsecured business loan.
Business loans can be hard to get, depending on your credit, your business plan, and the assessment of the bank on how likely you are to succeed and your ability to pay back the loan.
2007-07-17 06:38:36 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Home equity would probably give you a lower interest rate than a small business loan. I personally wouldn't tie up my personal assets with my business, but if you're opening a sole proprietorship you essentially do that anyway for any liabilities. I suppose it comes down to a matter of preference and what you feel the success rate of the business might be.
Have you checked through the Small Business Administration for any loan suggestions they might have? The organization is dedicated to helping people open and run small businesses, including financing options. The link is below. Good luck!
2007-07-17 06:41:00 · answer #2 · answered by Bridey 6 · 0⤊ 0⤋