Have you considered using your savings as a resources for the funds you need?
Dipping into your savings (assuming you have some!) is a time-honored way to bootstrap your fledgling new business into existence.
There are many examples of those who've gone before who have invested their life savings into new businesses that went on to become some of the companies you deal with in your everyday life today.
Obviously, the advantages to this type of startup financing are huge.
You have no one to answer to but yourself, (and your spouse, if you have one!) and you can entertain as wildly imaginative a dream as you can dream.
If you are taking out a loan against retirement assets, such as a 401k, remember that there are rules you'll need to abide by or get hit with hefty penalties and the loss of potential tax benefits you may want down the road.
Remember, this is your savings. If you're going to need this money for something important shortly, such as your 16 year-old’s college education, just know that you may not be able to pay it back it time.
Also, borrowing from yourself has a built-in advantage of only drawing down as much as you need at a given time. (Borrowing from retirement accounts not included here.)
For example, you may have money in CDs, and you use them as you need them, in the hopes that your new business will soon cover what you've had to so far.
If this money you're borrowing isn't only from yourself; that is you have a spouse or significant other with a stake in this, make sure you are not only in agreement, but that there is full disclosure.
An off the cuff “I'm going to put a little cash into the business” may get you in hot water when it turns out that $50,000 of your retirement assets are now supporting your goldfish enterprise!
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Credit Cards - A Cautionary Source For Startup Cash
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