Your Home Business: Getting Money To Grow

Having a home business enables you to start earning money for yourself on your own terms. However, once business gets underway, it's sometimes hard to grow. Getting enough money for good equipment and supplies isn't always easy when you're first starting out. To get the capital you need for your business, consider the following. 

Your Personal Savings Account

The easiest place to turn is your own personal savings account. Whether you purposefully saved up money before starting your business or have been putting away money faithfully for years, the account may have some money to solve some of your business problems. However, it may be quite unwise to use savings for business expenses.

When you use personal savings, if you have a health emergency or another type of crisis, the money will no longer be there. Rather than put you or your family through another crisis later, the savings account should be the last place to look for money, if you can help it.

Your Credit Card

Another accessible source of money is one of your credit cards. This is simple because you won't need to pay the full amount of your purchases right away, and your savings remain intact. This can work in the short-term, but then you must deal with high interest rates and are again diminishing the resources you have if a personal emergency should arise.


Those in your industry who have already "made it" might have banded together to create a peer-to-peer lending organization. This may be a solution that works, depending on how much you'd like to borrow. Interest rates can be low and the monthly payments could be lower than you expect. Because the lending organization is made of other small business owners, however, the amount available for you may be less than you really need to get your business where you want it.

Commercial Lenders

Arguably, the best solution when you need business capital is to go directly to a commercial lender. These lenders give out thousands of dollars a year to businesses like yours and can work with you to find a loan that's suitable. You can consult different banks and online lenders to find terms that seem favorable. You may need to produce a business plan and some financial documents to show that your business is a good risk. When you're granted the loan, you won't be jeopardizing your own financial wellness or straining your personal pocketbook.

Options exist when you need money for a growing business. Discuss your needs and talk with lenders before making your ultimate decision