Do HELOCs help businesses?

How's business?

As a business professional, it is important to have many different tools at your disposal and to be able to use them all well. Yet it still surprises me how many people fail to understand the benefit of one of the easiest tools for them to use. Some don't even know what is.

A HELOC is one of the most flexible financial tools available.

When you are in business, especially a small business, it is critical that you have access to resources. These include personnel, materials, equipment and money. If you can't access resources when you need them, your business can not grow nor will you be able to keep pace with your competition.

A HELOC could be the key to the success of your business.

People like HELOCs because they are flexible, re-usable and usually tax deductible.

If you'd like a HELOC, want more information about them, or would like to learn about the many creative ways others use them, please click the link below.

-Mr. HELOC

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Reply to
Dollarsign
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As a conservative CPA, I could never, in good conscious, recommend to any client that they get a home equity loan to finance a business, either startup or existing. On principle, I couldn't advise a client to put their home up as collateral for a risky investment. If the business is a startup, it should be funded with cash, not credit or debt. If the business is already existing, it should fund the growth from internal means, e.g. - profit and cash flow. As a last resort, I would recommend that they should get a loan on the merits / assets of the business. There is just too much risk involved to include someone's home. If the business goes under, they'd at least have a place to sleep.

Just my humble opinion...

Russell Tuncap, CMA, CPA

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Reply to
R

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