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Business loans 'are an option'
02/05/2007
Small-business loans are an option for people looking to invest in their own companies, an expert in the US suggests.
Writing in the Los Angeles Times, business expert Karen Klein indicates that this type of loan involves putting up some assets as a guarantee.
She also warns that using home-equity loans to raise funding, as a number of entrepreneurs do, can be risky if a venture fails. This is because it is putting home-ownership in the balance.
"Along with traditional lenders, such as banks, credit unions also make small-business loans," states Ms Klein.
"Credit unions, which are non-profit institutions geared toward lending relatively small amounts of money, are increasingly giving loans to entrepreneurs."
She adds that the average credit-union business loan in the US is $175,000 (£87,685), which can be important to small businesses which are often in need of no more than $100,000.
Writing in the Los Angeles Times, business expert Karen Klein indicates that this type of loan involves putting up some assets as a guarantee.
She also warns that using home-equity loans to raise funding, as a number of entrepreneurs do, can be risky if a venture fails. This is because it is putting home-ownership in the balance.
"Along with traditional lenders, such as banks, credit unions also make small-business loans," states Ms Klein.
"Credit unions, which are non-profit institutions geared toward lending relatively small amounts of money, are increasingly giving loans to entrepreneurs."
She adds that the average credit-union business loan in the US is $175,000 (£87,685), which can be important to small businesses which are often in need of no more than $100,000.