Home Equity to Fund a Small Business
Many “Main Street” business purchases are well under $500,000, and for many buyers of small businesses using the equity in one’s home is a great source of funding. By utilizing a home equity loan for the purchase of a small business a Buyer can reap the additional benefits of increased cash flow resulting from the longer amortization period of a home loan. With home equity not where it once was in Wisconsin many potential buyers of small businesses are not able to tap this form of financing. If you are able to borrow against your home equity, it is a good idea to plan ahead when purchasing a business before you get to the offer stage since the approval process can take some time.