BD Nationwide will match you with brokers that offer second mortgage loans for financing a new business. We provide unique home equity financing with 2nd mortgages that were designed to offer cash injections for a new business. Too often new business owners are unable to raise capital with a business loan because their business has not been established long enough. The SBA loan process can be daunting and time consuming for someone who just started a new company, but an equity home loan might provide a clearer path to funding your new business.
Take Out a Second Mortgage to Finance Your New Business
BD Nationwide continues to be a friend to the self-employed and small business owners throughout the United States. We offer premiere home equity loans to borrowers seeking limited documentation and stated income loan programs. Consider the “NINA” no income – no assets loan option when your assets are not liquid or cannot be documented.
BD Nationwide is the perfect company to help you access fund quickly while maximizing and leveraging your home equity. Second mortgage loans offer capital with affordable terms and this is critical for new business cash flow
• Quick Cash Injections for your Business
• Fixed Rate Second Mortgage Loans
• Self-Employed Home Equity Lines of Credit
• Raise Capital with 2nd Mortgages
• Consolidate Outstanding Debts
Minimum 2nd Mortgage loan/line Amount: $20,000
Maximum Second Mortgage loan Amount: $1,000,000
6 Reasons to Take Out a Second Mortgage to Fund a Business Start-Up
Starting a new business is an exciting venture, but one of the biggest challenges for entrepreneurs is securing the capital needed to get things off the ground. While traditional business loans are an option, many entrepreneurs turn to alternative sources of funding, including a second mortgage. Taking out a second mortgage allows you to tap into the equity in your home to finance your business. Here are six reasons why a second mortgage could be a smart choice for funding your new business.
1. Access to Large Sums of Capital
Starting a new business often requires significant upfront investment. You may need money for office space, inventory, equipment, or marketing. A second mortgage allows you to leverage the equity you’ve built in your home to access a substantial amount of money. Whether you choose a home equity loan, which provides a lump sum, or a home equity line of credit (HELOC), which offers flexible access to funds as needed, a second mortgage can provide the capital required to cover initial expenses or to fund business expansion.
2. Lower Interest Rates Compared to Other Financing Options
One of the primary advantages of using a second mortgage to finance a business is the lower interest rates compared to other types of loans. Second mortgages are secured by your home, which makes them less risky for lenders and often results in lower interest rates than unsecured business loans, credit cards, or personal loans. Lower interest rates mean more affordable monthly payments, freeing up cash flow to invest back into your business.
3. Flexible Financing Through a HELOC
A home equity line of credit (HELOC) offers a flexible financing option for new business owners. Unlike a lump sum loan, a HELOC works more like a credit card, allowing you to borrow money as needed up to a certain limit. This flexibility is particularly beneficial for businesses with variable expenses or those that require ongoing investments in inventory, staffing, or marketing. With a HELOC, you only pay interest on the money you withdraw, making it a cost-effective way to manage your business’s cash flow.
4. Retain Ownership and Control of Your Business
Many entrepreneurs seek out investors or venture capital to fund their business, but this often means giving up equity or control. By using a second mortgage, you can retain 100% ownership of your business. You won’t need to answer to investors or give up a portion of your profits. A second mortgage allows you to finance your business on your terms, without giving up control over decision-making or long-term growth.
5. Potential for Tax Deductible Interest in Future
In certain cases, the interest you pay on a second mortgage used to finance a business can be tax deductible. This can lower your overall costs and provide additional savings as you grow your business. However, it’s important to consult with a tax professional to ensure that your business expenses qualify and to understand the specific rules that apply to your situation. Taking advantage of this tax benefit can make using a second mortgage for business funding even more attractive.
6. Build Your Credit and Financial Profile
Using a second mortgage responsibly to finance your business can help you build your credit and improve your financial profile. As you make consistent, on-time payments on your second mortgage, you demonstrate financial responsibility, which can improve your credit score. This, in turn, can make it easier to secure additional financing for your business in the future, such as a business loan, line of credit, or other forms of capital.
Taking out a second mortgage to finance a new business can be a strategic way to leverage the equity in your home to secure the capital you need. With access to large sums of money, lower interest rates, and the flexibility of a HELOC, a second mortgage can offer the financial stability needed to get your business off the ground. Additionally, the ability to retain ownership, potential tax benefits, and the opportunity to build your credit make this a viable option for many entrepreneurs. However, it’s crucial to evaluate your financial situation and ensure that you can comfortably manage the payments before pursuing this route.