Invest in Yourself: When a Personal Loan Makes Sense

Whether you are trying to sell your boss on the merits of working from home, or you’re already there—maybe doing eldercare or raising kids—you may need a little financial help setting up a first-rate home office.

It may be as simple as upgrading your network connection or getting a new monitor, or as complex as hiring a graphic designer to create your online identity. But there are costs to calculate. Do you need to print marketing materials? Purchase a website domain? Advertise?  Maybe you’re sorely in need of a professional office chair. Or perhaps you’ll need to purchase inventory for your multi-level marketing business.

Naturally, there are a number of ways to cover these costs. You may have saved money from your day job. Or Aunt Heather has a soft spot for your promising venture and loves giving you a hand up.

Most likely, you’ll need some sort of loan. Understanding your business financing options for a home-business loan can be complicated. As small business lenders evaluate your company, they’ll be looking for essential elements including time in business, your assets, and business credit history. Not every home-based business has these.

You can find great advice online. Companies like Fundera break down all you need to know about a home business loan, the reasons they’re a bit trickier to secure than traditional financing, what your borrowing options are, and what to expect from the loan application process.

Another route that may make sense for you is a personal loan. Look for personal loan providers like SkyCap Financial, which offers a quick and easy online loan application process that in most cases can be completed in just five minutes. Short-term loans range from $500 to $10,000—which may be more than sufficient to get your business started—and you won’t need to create a business plan for investors.

In addition, the company offers SkyCap University, a free online course aimed at improving financial literacy for SkyCap Financial clients. The course covers everything from creating a budget and dealing with credit to preparing for retirement.

After securing financing, your next step will be setting yourself up for success. Again, whether telecommuting or branching out on your own, you’ll find numerous ideas online and at your local library.

Moneycrashers has a concise guide on how to handle everything finding space and upgrading software to emotional considerations like dealing with isolation, getting motivated and drawing boundaries between work and family time.

You’ll also need to plan ahead for taxes and decide how to cover health insurance and retirement expenses.

Still, there are reasons that home-based businesses are quickly becoming the fastest growing form of business start-ups. Growing your company out of your home allows for flexibility and the benefits can be substantial. Just take some time to look at your needs, find the proper financing, and do your homework.

Check out this article from Entrepreneur for more on starting a home-based business.

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