Where To Get Money For Your Home Based Business

A home based business does require some money to cover necessary expenses whether it be for start up, maintenance, or expansion. While a home based business can be relatively inexpensive to own and operate, having the necessary funds is very important. Fortunately, there are plenty of options out there to help.

Have You Considered an SBA Loan?

The U.S. Small Business Administration is designed to help people start and operate their own small business. Keep in mind that the SBA will guarantee a loan made by private lenders to help you get the loan. They don’t give away money or make the loan themselves. They also have numerous informational resources to help you operate your home based business successfully.

Just like most other loan situations, the SBA has criteria that must be met in order to obtain the loan. Particularly, they examine the ability to repay the loan from business profits. They will also expect you to personally guarantee the loan and they will examine what assets you may have. Other considerations are your character, management capability, collateral, and equity.

The SBA expects you to use your own assets first. They also expect your small business to be For Profit meaning that you intend to operate your home based business to generate a profit. Your business must also be conducted in the United States and there must be some owner equity meaning that the owner has a monetary stake in the business.

There are also rules about how you can use the money from an SBA loan. Items such as equipment, inventory, and working capital qualify. You cannot use the money to pay existing debts or make payments to business owners. Check the SBA website or your local office for further details at www.sba.gov (Alexa)

Have You Considered Private Grants?

While there are not any grants at this time offered by the U.S. Government for Small or Home Based Business endeavors, there may be sometime in the future. Check your local library for books authored by Matthew Lesko or visit http://freegovmoney.cjb.net/ (Alexa) He has made himself an authority on government based money programs. Also, some corporations may make grants available for small businesses. For more information, visit www.fdncenter.org/funders/grantmaker/index.html (Alexa)

Have You Considered a Conventional or Signature Loan?

If you think about how relatively inexpensive starting and operating a Home Based Business really is compared to a conventional business, you may opt to just borrow the money from a local or national lender. Now a days the competition to make loans is much greater than before which may mean good terms for the borrower. It is definitely worth looking into. You may want to inquire from the following:

American General Finance
www.agfinance.com (Alexa)

Washington Mutual
www.wamu.com (Alexa)

Citi Financial
www.citifinancial.com (Alexa)

Beneficial or Household
www.householdfinance.com (Alexa)

Lending Tree
www.lendingtree.com (Alexa)

Have You Considered Other Alternatives?

1) Borrow From Someone
2) Bring in a Business Partner
2) Use Your Credit Cards
3) Cut Your Budget and Save The Money You Need
4) Take a Second Job

Regardless of how you obtain the funds that you need for your Home Based Business rest assured, Where there is a will, there is a way. Owning and operating a Home Based Business can be very rewarding. For many, it is a means to a much higher income and a lot more freedoms. It is well worth the hunt for funds.

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The Rise Of Credit Mastercards.

Credit has become a pillar of the American economy. When people began to look for ways to increase convenience in transactions, credit cards became popular as an effective way to exchange money in a ‘cashless’ environment, making transactions faster and avoiding the problems associated with dealing in cash. The rise of credit merchants and the widespread use of credit for household transactions has made large financial groups such as MasterCard into catalysts for the daily flow of money between clients and businesses. With this power, though, comes responsibility, and now people are wondering how to respond to problems of credit fraud and identity theft, and where the responsibility lies for these safeguards.

In a recent attempt at technological piracy, unauthorized parties got access to data held by millions of MasterCard holders. Financial data was taken from databases and a kind of general concern ensued. MasterCard named the third-party data firm CardSystems as the point where security was breached. The problem caused a lot of confusion as consumers wondered how their personal finances would be effected. The credit companies have issued warnings regarding the possibility that individuals could have their credit information used by thieves who gain access to the pilfered information.

Still, MasterCard has made clear that cardholders themselves are not generally responsible for unathorized charges. Consumers have a responsibility to report unauthorized charges promptly, and credit companies like MasterCard work to identify the problems and stop the cash flow. Cardholders enjoy the safety of non-liability agreements that limit their personal exposure to credit theft.

In addition, MasterCard and other credit corporations have come up with new ways to safeguard credit information in order to alleviate customer concerns. New products such as MasterCard SecureCode help cardholders to protect themselves from credit fraud. SecureCode is a product that deals with a growing type of credit use: the use of credit cards over the internet. With so many cardholders putting their card numbers on the web to buy online, and a growing number of unsafe connections through ISPs, it’s essential to address the problem. ‘Open’ connections like wi-fi and cable increase the chances that hackers will somehow gain access to card numbers and be able to use them for illegal activities. Use of tools such as SecureCode helps MasterCard holders to make sure that their card numbers are safe; another important point for those trading online is to protect their connections from vulnerability using firewalls, anti-virus programs and other general network tools.

MasterCard has long been a familiar name in the ‘realtime’ market, in advertising and active in daily transactions. Now it is common online as well. If consumer trust continues, MasterCard will continue to manage finances and financial data for a long time.

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Credit Card Blues

For the average American family, debt, and especially credit card debt is spiraling out of control at a record pace. The average household credit card debt has risen dramatically from $3000 in 1990 to over $8000 today. Personal bankruptcies are also at an all time high, prompting Congress to consider a radical bankruptcy law overhaul, designed to weed out those who are merely taking advantage of the system loopholes while directing many to more palliative alternatives such as a debt management program.

Of course some debts are considered necessary and indeed wise choices. For instance, few if any could afford a house if we had to wait until we could buy it outright. Generally speaking, a home is an asset that, over time, appreciates in value. Another debt that makes sense is a student loan. All data points to a direct correlation between income and educational level. However, what about that big screen TV you really didnt need, or that new car when a used one would have served the same purpose and not have created a financial nightmare. We need to start telling ourselves NO!

According to the experts at The Credit Counseling Foundation, Inc. (www.GoDebtFree.com), statistics show that about 60% of all credit card holders do not pay off their entire balance each month. With average interest rates still hovering around 15%, this increases the cost of everything you buy by at least 15%. And if you are only making the minimum payment, you could be looking at 20-30 years to pay off that balance depending on your interest rate. Minimum payments are designed to cover mostly interest, thereby keeping the holder chained to their credit card debt. One may ask with interest rates at 30 year lows why are credit card interest rates still so high? Simply put, there are no regulations on credit card interest rates requiring that they mirror prevailing interest rate indexes. Along with late fees, user fees and penalties, these interest rates, which can be greatly increased due to just one single late payment, are all implemented to generate tremendous revenues for the issuers, while at the same time creating a situation of unwanted indentured servitude for the debtor.

When faced with this overwhelming problem, what is one to do? Well the first line of attack is to cut up all credit cards. Only buy what you can afford to pay for in full. If you decide to keep a credit card, pay it off every month. This may sound like basic, common sense advice, but what about the average Joe who has already accumulated too much debt and cannot pay it off? If you are extremely disciplined and have the extra cash, you may want to formulate a plan to pay off the higher interest cards first. For most us who neither have the cash flow nor the self-discipline to adhere to such a plan, or dont want to lose the built up equity in our home by taking out a line of credit or re-financing which, by the way, could put the family home at risk should future financial setbacks occur, a good alternative would be to use a non-profit 501 (C) (3) credit counseling service. These companies can afford their clients many benefits that they could not ordinarily accomplish on their own. Interest rates can be reduced, accounts can be brought back to current status through re-aging, and maybe best of all, can stop those annoying and embarrassing creditor calls. It can get you a workable monthly payment while shortening the payoff term to typically 4-6 years. This can save thousands in interest costs! Another overlooked benefit is that all credit cards put into a debt management program are closed, thus eliminating all temptation no matter how hard you find it to say NO! All this without the trauma and stigma caused by bankruptcy or settlement.

Since there are literally thousands of these debt management companies out there, how does one go about choosing the right one? In addition to using a non-profit agency, check factors like the companys Better Business Bureau report, are they accredited by a nationally recognized certifying agency such as ISO or COA, are their counselors certified as well, how long have they been in business and word of mouth recommendations. Another consideration is whether to use one of the local community funded agencies or a private one. Although the local agencies have the advantage of being able to meet you face to face, due to limited budgets they can lack the expertise of private companies as they are often staffed predominately by volunteers and dont offer the array of modern on-line and technological services which todays consumers deserve and most large creditors demand in order to extend the debtor their most favorable terms. Moreover, many locals encumber their clients with restrictive guidelines, going as far as limiting the number of haircuts you can get or movies you can view.

If you have reached the point where you are transferring balances just to keep afloat, making minimum payments and getting nowhere or getting harassed by creditors and view bankruptcy or settlements with your creditors as both far too damaging and morally unacceptable, you may want to consider contacting a reputable credit counseling/debt management organization. A good starting place besides the BBB, would be one of the debt management organizations that belong to the American Association of Debt Management Organizations (AADMO). Most of all, dont despair! Help is out there, just do your homework and choose wisely. With the right agency to guide you combined with a true commitment to getting out of debt once and for all, there is indeed light at the end of the tunnel

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Why Using Credit Cards Can Be An Advantage

There are many types of credit cards available that can be used depending on your circumstance. These include pre-paid, gas, small business, travel rewards, air miles, hotel points, student, unsecured or secured credit cards.

Pre-paid credit cards are more less like debit cards except that they do not come with a bank account, gas cards are usually used most times for the purchase of gas. Discover provides very competitive gas card rates. Secured credit cards are usually provided for people who want credit cards but have bad credit or no credit history. A deposit is usually required up front as a guarantee in the event of non-payment. Usually background checks are made, but due to the competitive nature of the credit industry, most providers offer guaranteed approval without credit checks. Student credit cards are designed specially for college students. With very competitive rates by different providers, there are many to choose from. It is a great way to build credit history if used appropriately.

Some of the major credit card providers are American Express, Mastercard, Visa, Discover, Chase, Advanta and many others. Such is the competition amongst providers that, credit can be obtained at unprecedented low rates these days

Credit cards are here to stay and it is hard to imagine them not being part of our normal lives. There may be negatives but credit cards are useful in many different ways. For instance, using money form your bank account to pay for your holidays can cost you a lot of money should things go wrong and your holidays not materialize. Using a credit card for the purchase however means you can have your money back due to the general Terms and Conditions written into most credit card contracts. There are many instances where people have benefited from using their credit cards for purchases instead of using money directly from their bank accounts.

Take for example the Mrs Bretton, who booked a party venue for her toddler’s party three months in advance only to be told six weeks before the date that the company had gone bankrupt! She however, received her money back after making this known to her credit card company. For others in her shoes who avoided using a credit card, they would have to wait for the administration accounts to determine whether the are likely to get their money back.

Credit cards are also a great way to start a business. Banks can be intransigent these days and lend nothing or very little to people looking to start businesses. This is where a credit card can help. Unlike a loan, payments are not fixed and depending on how much you borrow you and so long as you make at least the minimum payment, a credit card can be used to make small purchases for your business. It is important to pay attention to detail if you do so and pay your balances or payment due on time.

Even for people who have no debt, using a credit card for certain purchases is much wiser especially if buying on the internet. Goods and services such as holidays are better acquired using a credit card for reasons already mentioned above. In addition, it is better to have a credit card and pay of the balance every month so as to have some form of credit history than to have no credit history. This can hamper any future need to borrow a big loan whether for business or for a home.

Ideally we would all like to live debt-free, but such is the invasiveness of credit cards that it is nearly impossible to avoid them. It is also a way of measuring the credit worthiness of people. All in all, if used properly, using a credit card can be a positive rather than a negative experience.

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The 7 Immutable Laws Of Building true Wealth”

Wealth (old English) from weal – Well-being,” O.E. wela wealth,” in late O.E. also welfare, well-being,” from W.Gmc. *welon, from PIE base *wel- to wish, will” (see will (v.)). Related to well (adv.). – Online Etymology Dictionary, 2001 Douglas Harper

Given my new found focus, clarity, and vision, as touched upon in my recent post An Epiphany of Wealth and Prosperity, I have recently developed a system for building what I have labeled True Wealth” (copywrite, trademark, and patent pending, all rights reserved… lol) that I will feature in a series of posts dealing with the separate tenants of this new system. It’s called The Wealth Accelerator Strategy�.

I have come to realize that my core beliefs about economics, finance, capitalism, business, money, consumerism, and the like, are all contrary to how our world functions today. Now, the questions to ask are rather simple; Does that make the Worlds” way of functioning wrong?, Are those who make their livelihoods through this way of functioning, bad for doing so?, Are you an anarchist?

The simple answers to these three questions are no, no, & NO!

You see, fist of all, it’s not the way of functioning itself as much as what the inevitable outcome is sure to be, but more on that later. Also, the people who have to make their livings in this functional system may know of no other way. Even if they both enjoyed and preferred it, they themselves may not necessarily be a bad person, it’s simply their choice, and, they are free to choose. And, finally, I too am free to choose the direction in which I want to steer my life… I have no desires to cause an upheaval of anything… It will be what it will be, and I will be me.

Now, that put aside, let’s touch upon these laws” of true wealth” and the contrasting general world views. Note: this is not for everyone, nor do I expect anyone to agree, this is simply a difference of opinion.

The 7 Immutable Laws of Building True Wealth”

1) Seek God’s Kingdom

2) The Road to True Wealth” Begins at Home�

3) Real Money is Gold & Silver Coin

4) Live Debt Free

5) Live Simply

6) Be Generous

7) Exchange Paper Money for Real Assets

While these Laws” as I call them, seem to be rather straight forward and self explanatory, we will be gin to explore the individual tenants themselves in upcoming posts. But for now, I will give a topical sneak peek” as it were into each.

Seek God’s Kingdom

But seek first his kingdom and his righteousness, and all these things will be given to you as well. Matt 6:33 NIV

Everyone (for the most part) agrees that there is more to life that Money, Fame, & Power. The difference only comes into play concerning what is the most important thing, and if or who is the Supreme Creator(s). For me it’s obvious. However, many in our society struggle with a desire for the recognition and approval of centers of power that can be defined as both temporary and trivial at best.

Oh, and by the way… I’m not referring to Church. But, that’s a whole other blog.

The Road to True Wealth” Begins at Home�

The core of this principle deals with the fact that we desire too many things that extract us from our homes, families, and communities. We should strive to draw closer to home with Home businesses, localized investing, and maintain our Family Bank�. Also, the double meaning applies to Owning Real Estate, specifically your own home.

Real Money is Gold & Silver Coin

This is simply a direct reference to the Constitution of the United States of America that refers to not only Congress’ ability to coin money and regulate its value, but also that no state had permission to render anything but gold and silver coin as payment for debts.

$20 in face value of gold coinage has maintained its relative purchasing power against inflation. A 1 once $20 Gold Eagle has an intrinsic value of $673 USD.

Live Debt Free

It’s really simple… If you have to finance it, then you can’t afford it. Consumer debt, unlike mortgage debt, carries ZERO incentive to execute. The only benefit to individual or corporate debt is instant gratification.

Live Simply

Building off of the debt free rule, this speaks to the very core of what we feel is necessary for us to live and exist in true joy and happiness. This begins with the question; What do you really NEED in order to live in happiness?” The problem is that we really believe that all of the creature comforts” that we enjoy are really necessary for a happier life.

Be Generous

The real focus here is the power of community. The ability to have relationships that we can not only go to when we have needs, but, also to produce enough resource to be able to be a source of generosity to our trusted communal relationships.

This is not communism” or the redistribution of wealth, but, simply an elevated since of true community in which the responsibility for caring for the needs of those with whom we have primary or secondary relationships with, i.e. friend, family, religious affiliations, etc.

Exchange Paper Money for Real Assets

This probably makes more since when you put the concept into its lowest common denominator, or simplest terms.

Currency, as is the official term for printed or electronic money, is made from 25 cotton and has an intrinsic value of less than 4 cents. Electronic currency has no intrinsic (or real) value.

So here’s the exchange:

Cotton/Linen/Ink for Gold & Silver (7 $100 bills X .04 = .28) for 1 once of gold

Cotton/Linen/Ink for Real Estate (100 $100 bills X .04 = $4) for 1 acre of land

Now, the key to focus on here is not the exchange rate or the ROI, but on the preservation of value and the inevitable hedge against inflation.

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