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Starting a New Business? How Secured Homeowner Loans for Business Development Can Help Your Company Take Off

Britain has a strong entrepreneurial spirit. Recent figures from Companies House show that the UK saw a 51 per cent increase in the number of new businesses opening their doors in the first six months of 2010 compared to the same period in 2008.

The data also showed that 204,361 new businesses were founded in the first half of 2010. This is the largest number of new businesses opening in over a decade.

So, if you are starting a new business, you are likely to need a commercial loan or finance to start your business. For many people, secured homeowner loans for business development are the ideal way to fund a start-up company.

Secured Homeowner Loans for Business Development

Secured homeowner loans allow you to borrow a sum of money secured against the equity in your home. The lender takes a legal ‘charge’ over your property which means they have a stake in your property if you fail to keep up your repayments. The cash that you borrow can be used to finance your business start-up and to invest in new capital, machinery, stock or premises.

Remember that you have to keep up repayments on your secured homeowner loan otherwise your property is at risk.

Starting a New Business

The costs of setting up a new company can be significant. Depending on the type of business you are starting, common set-up costs include:

  • Deposits and rent on new premises
  • Furniture including desks, chairs and office equipment
  • Computer hardware and software
  • Commercial vehicles including a van or truck
  • Your raw materials for production or the cost of your initial stock
  • Financial considerations such as insurance

There are various different ways to borrow the money that you need to fund your new venture. Commercial loans are one possible options although banks are ever increasingly choosy about who they lend to. Credit cards can charge in excess of 15 or 20 per cent interest and unsecured loans might be difficult to agree if you are newly self-employed.

Helping Your New Business Survive

The initial few months and years are generally the most vital to a new business. Without the necessary financial support and backing in the early period of a new business it is easy for it to fold.

If you are thinking of starting a new business, it’s key that you make the investment your venture needs. Recent figures showed that only 0.6 per cent of businesses founded in 2009 have gone into receivership or liquidation, compared with an average of 4.5 per cent of those businesses set up between 2000 and 2008.

However, it is also vitally important that you have a sensible, carefully constructed business plan. If you are planning to consider secured homeowner loans to fund your new company then you have to be sure that your plan will work. If you don’t, you may run the risk of losing your home if you cannot keep up the repayments on your secured loan for business development.

So, whether you plan to open a bakery or butchers, or whether your business is involved in computers or chocolate, a secured loan could be the ideal way for you to join over 200,000 other Brits starting new companies.

To use your home to raise money at a competitive APR, please fill this homeowner loan form.

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