Home,Equity,Lines,Credit,NOT,F business, insurance Home Equity Lines of Credit - NOT For Your Business
As we all know to live in this world we have to perform some activity by which we can earn money. There are many activities by which we can earn money and meet the standards to live in this society. And from one of them is franchise. Franc Small offices have unique needs, and thatincludes document shredding. Designed with the smaller business inmind, the Dahle 20314 is a cross-cut shredder that offers Level 3security and brings you into compliance with federal regulations. The
http://www.articlesfactory.com">http://www.articlesfactory.com/author/Pat Gage.html">http://www.articlesfactory.com">http://www.articlesfactory.com/submit.html"> Traditional lending institutions, such as banks, rarely offer a line of credit to a business or individual with less than good credit. Non-traditional lenders will offer a higher-interest business line of credit that may need to be secured with some soft of collateral. An individual can usually get a home equity line of credit regardless of bad credit, since the loan is secured by the equity in your home, but this balance will show up on your personal credit and is not a recommended business credit strategy. This is also a big business practice mistake. You dont ever want to commingle your personal assets with your business assets.A few of the disadvantages of a home equity line of credit are:· This will lower your personal credit score.· The balance will appear on your personal credit report· You will pay a higher interest rate.· You will pay higher fees and penalties.· You are more apt to have a pre-payment penalty.· You will have to put up some form of real estate for collateral.· You will be charged appraisal costs and possibly application fees.A home equity line of credit is usually secured with the house you own. Some people use their home equity line of credit to remodel or add on to their home, thus raising its value and allowing for a higher line of credit. But at the same time they are lowering their personal credit score, which wouldnt happen had they used a line of business credit.You can also get an unsecured business credit line, business credit cards, and other unsecured business credit, if your business has a solid credit history. Individuals can also sometimes get an unsecured line of credit, but businesses with good business credit can get a much higher limit on an unsecured line of credit.A few of the advantages of an unsecured business line of credit are:Balance will not show up on your personal credit reportIncreases your personal credit scoreYou will get a higher credit limit than any personal loan type.You will get lower interest rates.There are no application fees.No appraisals or appraisal fees.There is no collateral required.Funds can be used for any business reason.If you are running your business off of your personal credit history, STOP IT IMMEDIATELY! Find out what you need to do to borrow money as a business successfully. The additional resources business credit can give you are worth the additional steps necessary to start building business credit.
Home,Equity,Lines,Credit,NOT,F