When you’re ready to start a small business, you’ve got to be ready to take on financial risks because you’re now heading into territory in which you are responsible for the success and failure of your business.
Why A Title Loan Might Be A Great Loan For A Small Business Owner
Probably the toughest part of running your own business is turning debt into a return on capital because at some point or other, you’re going to need some funding in the form of loans or investments in your business so you can grow it. This usually will mean planning your expenses and usually working to get your own cash savings high enough to get things started, but there are alternative funding options including title loans that might help you.
Tallying Up Your Startup Expenses
So what kind of things do you have to be ready for when you startup a business? The assets you need for your small business will vary depending on what industry or niche you want to go into. But there’s a few general things you want to be ready to pay for when you open up shop according to Entrepreneur magazine. As mentioned here, one expense you don’t want to get into is renting or buying an office or commercial building right away because you can find ways to run a business from your home.
The main things you probably want to know about are different laws and tax codes, insurance, and depending on your circumstances, limited marketing campaigns. At some point you probably will need extra funding as you have more marketing needs, hire more people, and have more overhead costs. But you can save by foregoing the luxuries first and adding them later.
Knowing The Funding That’s Available To You
If a loan isn’t available for your business right away but you’d consider opening it up to small dollar investors, crowdfunding is one way to go. This way of financing your business is explained by Forbes and is basically a way to get investors without needing to solicit a big money venture capital firm or investor. Crowdfunding is a growing trend for younger entrepreneurs.
There are some loans you might be able to apply for backed by the Small Business Administration if you’re working with limited business history or need an easier way to get approved for a loan. There are also peer-to-peer loans out there that have even less requirements than bank loans, but then there’s also vehicle title loans, and there are ways title loans could help successful small business owners if they’re willing to take on some short-term risk.
Vehicle Title Loans Could Get Business Owners Immediate Cash
Now before you do decide to go completely into title loan financing, it is important that you know what you’re getting into because you’re putting your vehicle up as collateral and risking losing it if you don’t pay back the title loan. The Consumer Financial Protection Bureau lists the risks associated with title loans on their website, and it is important to know that if you are going to take out a title loan against your car, you should have a plan to pay it off before its deadline. Also note that these loans are only legal in about half of the 50 states, so make sure your state or local jurisdiction allows them before attempting to get one.
But if a title loan is something you can handle, or if you have a vehicle you would be able to risk losing, you could potentially borrow thousands of dollars to get your business setup. You aren’t asked by the lender what you plan on doing with the title loan funds, and aside from your regular monthly income, you don’t usually have to present too many financial documents.
You just need to prove you are 18 or older, that you own your vehicle outright and that it’s generally kept at your primary residence. Just make sure you have done your due diligence before getting a title loan.