Take Cash Out

to Start a Business

Take Cash Out to Start a Business

What is the Benefit?

Whether you are currently a business owner or getting ready to take the leap to start your business, a cash-out refinance may be the solution to help you grow. A cash-out refinance is an ideal choice to gain access to large amounts of funds to start a business, often with a lower monthly payment.

For business owners: a cash-out refinance can help you gain the capital to scale and grow, invest in new equipment, inventory, infrastructure, or even increase marketing spend.

For those looking to start a business: most business ventures requires an initial capital investment. Banks are more reluctant to loan funds to consumers with no business history. A cash-out refinance is one of the easiest ways to borrow a large sum of money without significantly increasing your monthly payment.

Here’s the breakdown on benefits of taking advantage of a cash-out refinance to fund your business versus getting financing elsewhere:

Business Loan, Personal Loan, or Credit Card

M

High Interest Rates: Interest rates with personal loans, credit cards, HELOC’s, or 2nd mortgages are typically higher

M

High Monthly Payment: Personal loan, HELOC’s, and 2nd mortgages have shorter terms, so you may be required to pay a higher minimum monthly payment

M

More Difficult to Get Approved: Many banks may be reluctant to loan money to consumers to start a business with no history

M

Possible Limited Funding: Many times, a business or personal final loan amount does not cover the necessary start up costs

Cash-Out Refinance

N

Low Interest Rates: Mortgage Interest Rates are typically lower than a business loan, personal loan, or credit card

N

Low Monthly Payment: With a cash-out refinance, you can have a term up to 30 years. A 30 year term means a lower monthly payment for you

N

Avoid an Additional Monthly Payment: The funds you borrow for your business will be consolidated into your mortgage loan so you don’t have to worry about making payments to another lender