Start-Up

Is it advisable to get an equity line of credit leveraging your home for use in your business?

Leveraging assets in order to finance a new venture is very common and often times that means leveraging one's home. The risk in doing so is that a default on the loan would likely amount to the loss the house, so it's not a risk everyone is willing to take. However, if you've put together a thorough business plan, including a detailed financial plan addressing a worst-case scenario, then you're certainly reducing the risk.

 

Consult with a financial adviser to ensure your funds are in order before investing in the start up!

Norman Leach
National Business Writer; Instructor, Mount Royal University

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