Borrowing Money?
I want to get $20,000 to start a home-based business. I don't own my own home, my car is only worth $2,500, but I have a great credit rating and credit cards at my disposal. What do you figure the best way to come up with the $20,000 would be? Cash advance from the credit card? Try to get a personal loan from a bank? Or what?
I am very financially conservative so my advise may surprise you a bit. I would suggest looking into an SBA loan or personal loan but without any secondary sources of repayment it may be tough for you to qualify...contact you local bank and ask them for information on any SBA classes that may be available in your area to help you with your business plan and SBA loan application (it is a very extensive process...but a good tool to think through your business even if you don't go the SBA route). Another good source is family. If that's not possible I would encourage you to seriously think about how passionate you are about the endeavor you are considering. Of course no one goes into business thinking they will fail but a very high percentage of small businesses do fail. If this is your life dream however I would advise you to raise the cash however you can even if that means you need to draw on your credit cards. You only have 1 life to live and if this is really what you want and you feel you have a competitive advantage over your competitors then I say go for it and a good luck.
