Borrowing TroubleLeave loans alone, taxing matters, factoring facts.
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Before incurring onerous debt likely to plague your bottom linefor years, ask yourself if getting that loan is really necessary.Could you start your new business with personal savings? Wouldliberal credit terms from vendors help carry your existing businessthrough downturns? Might improved cash flow be enough to fundexpansion?
Fact is, most small businesses are funded by savings, leavingowners with no loan repayments, no partners, no one to shareprofits with and no exorbitant interest to pay. But if youabsolutely must look elsewhere, ask friends and relatives to helpwith start-up capital. Or investigate borrowing against yourretirement plan (if you're currently employed), stock-marketholdings, life-insurance policy, certificates of deposit or home.(Be aware that a home-equity loan is risky; in a worst-casescenario, you could lose your house.) Other options:
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