I have been contemplating applying for a line of credit so as to quit my
secure 40-45 hour a week job. It is very difficult to market and get your
business started at night. My question: Is it better to get a line-of-credit
to keep you going while you get the work or stick it out part-time?
I would love to hear what the voice of experience (you) has to say on the
issue.
Thanks,
TPF
jtowbin | Community Moderator |
10/18/2012 - 4:08 pm
HI, in addition to the informaton provided from BizResearcher and rateguide, you might want to check out the resources available in our Starting a Business section, including information about exploring loans, grants and funding. Good Luck.
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Work full-time and your business part-time. You have to find a way to make it
work - if you can't overcome this - you might not be able to overcome many of
the other obstacles you will face by being in business.
Plus, not taking a loan and self-funding is less risky on your part -
especially if they require a personal guarantee. Lastly, as stated, you might
not get your loan approved without having some form of income at time of
application.
Just an FYI: Your ability to get financing might decrease if you were to stop
working and dedicate yourself to starting a new business specially if your
business has very little revenue or deficient cash flow. Most small business
loans given by banks look at "global cash flow". Therefore, it is normally
easier to get financing if you can show that there is money coming in from a
job.
BizResearcher | Window Shopper |
10/10/2012 - 11:02 am
It really depends on your business. Is it something you can operate in the
evenings and on weekends or do most of your customers expect to reach you
between 8 and 5? Personally, I would cut back to part-time hours while
devoting more time to making a go of your business. It might take longer, but
it is far less risky.
jtowbin | Community Moderator | 10/18/2012 - 4:08 pm
cashloans | Window Shopper | 10/18/2012 - 7:33 am
BMT | Window Shopper | 10/17/2012 - 10:08 pm
work - if you can't overcome this - you might not be able to overcome many of
the other obstacles you will face by being in business.
Plus, not taking a loan and self-funding is less risky on your part -
especially if they require a personal guarantee. Lastly, as stated, you might
not get your loan approved without having some form of income at time of
application.
rateguide | Window Shopper | 10/10/2012 - 9:19 pm
working and dedicate yourself to starting a new business specially if your
business has very little revenue or deficient cash flow. Most small business
loans given by banks look at "global cash flow". Therefore, it is normally
easier to get financing if you can show that there is money coming in from a
job.
BizResearcher | Window Shopper | 10/10/2012 - 11:02 am
evenings and on weekends or do most of your customers expect to reach you
between 8 and 5? Personally, I would cut back to part-time hours while
devoting more time to making a go of your business. It might take longer, but
it is far less risky.
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