Getting credit approval is extremely difficult, even for small business owners. The strenuous lending requirements that the banks are enforcing have made it difficult to get any type of loan. But, business owners over 62 years of age have options. Their best chance at obtaining financing is a reverse mortgage. Entrepreneur Magazine cites the potential risks. These are some things to consider when looking into reverse mortgages to finance a small business:
Reverse Mortgages and Home Equity
Home equity can be converted to cash, which will give you access to capital to start and develop a business. That cash can be issued in a lump sum or a line of credit. The credit line can be useful if you just need a secondary source of cash flow if you don’t need the large sum up front. The money is yours and doesn’t have to be paid back until you sell the home or pass. The best way to pursue details about reverse mortgages is to contact a reverse mortgage counselor to crunch the numbers. Click here to compare reverse mortgage quotes.