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Seasoned home business owner John Roney offers some advice for obtaining start up funding.

How to Obtain Financing to Start a Home-Based Business
By John Roney

How to Obtain Financing to Start a Home-Based Business
Home based businesses are often inexpensive to begin, some
starting at just a couple hundred dollars. Some
businesses, however, that can pay more substantial
commissions of $1000 and more per sale can cost several
thousand dollars to get started.

The majority of those who are engaged in finding a
home-based business are simply not able to reach into their
savings accounts and pull out $3000 or more to get started
in this high-ticket business.

There are several solutions that exist for the man, woman,
couple or family who are looking for the start up capital
for such a business.

Traditional Bank Loan: This can be a pretty good way to
go, but requires good credit and often requires a number of
hoops to jump through. The advantage here is the generally
lower interest rate that can be obtained as compared to a
credit card.

Credit Card: This option will work for most as long as the
credit is available. Sometimes an increase of credit is
possible. The disadvantage here is often a high interest
rate, although a successful business can produce a much
greater positive return than the fees associated with its

Borrow from Family, Friends and/or Relatives: This option
is sometimes available to people. Often ego will play a
part in the decision to go this route and an individual may
not want to ask for the help.

I've started two home-based businesses before and I've
borrowed the money to get started each time. Each time
I've borrowed about $4000 in order to get started, but in
each case it has paid off and I've earned that money back
with just a few sales made. Both times I borrowed the
money to get started in my business it was a no interest
loan and I was able to obtain the money within a very short
amount of time with just a call to a friend. This can be
one of the easiest ways to go.

Rummage Sale/eBay: Some find that they don't have any
other options, and the only way they can get started is to
sell some of the extra things they have. I've even heard a
story about a time when someone sold a cow to get started
in their business. That's what I'd call commitment.

Company Financing: There are a select few companies that
provide financing or payment plans to its members to get
started. The business I work with, for example, offers its
members financing to purchase their lifetime vacation
membership (the product that members also sell) for just
$85 a month to approved credit. However, the challenge can
be if the applicant has a very low credit score which can
restrict approval.

I've personally always been surprised by how little money
most people actually keep in their bank accounts as liquid
cash. When I go to the ATM (and I live in a wealthy area)
I'm always surprised to find a receipt left in the machine
from the previous user and the balance reflects just a few
hundred dollars.

This is an important lesson to learn – the power of simple
savings. Savings is one of the things that American's are
the worst at, but it is an important thing to do. I
believe that the more money I have in my bank account the
more I believe I am able to earn a higher income.


John Roney is the author of The Everyday Apprentice (Morgan
James 2008) and a leader in the home business industry.
John teaches how to start a home-based business that pays
$1000 per sale with zero up-front investment. For more
information, visit .

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