Many people are under the impression that funding their own business is an impossible feat. They believe they can’t do it because of lack of funds, but this couldn’t be further from the truth! There are many different ways to fund your business, and one of these methods is using equity release money.
Equity release loans have been used for years by older people who want to help their children or grandchildren with a start-up capital for a new business venture. That’s why so many entrepreneurs look outside of their company for other ways to fund their dreams, to find an alternative source of money that will allow them to do what they love without sacrificing financial security.
The Benefits of Using Equity Release for Your Business
The benefits of becoming self-funded by using equity release money are numerous. If you’re thinking about starting your own business, why not think outside the box and use equity release money for funding? In this article Jason Stubbs, a specialist in equity release sector from EveryInvestor will provide top 3 benefits of using equity release for your business. He can also help you calculate how much you will gain from your property using equity release scheme.
1. The Continuation of a Business
Equity release is an apparent answer for a shareholder working in the business who is approaching retirement and wants access to the monetary value they have helped build up. If the business is family-owned, this form of finance may also provide an incentive to the following generation.
2. Lowering Risk Exposure
Shareholders that want to lower their risk exposure may seek equity release. However, it is not only the infusion of capital that is critical in this case. Some funders will bring complementary skills and ideas to the table to add value to the company, and it is critical that the investment be serviced without jeopardising future corporate growth goals.
3. Keeping the Business Under Your Control
Existing stockholders’ major concern in these scenarios is maintaining overall control.
When a private equity firm buys a minority position in a company, this problem is frequently solved. Existing owners retain control over strategic choices and bank borrowing – cashflow or asset-based loans to enable a lump sum withdrawal.
When you are starting your own business, it is important that you have the capital to get started. You may be thinking about how to generate this money. With Equity Release, you can fund your business venture while also enjoying the comfort of knowing that if anything happens to you or your spouse, all your assets will be safe and secure.
Equity release is a way to access cash that’s locked up in your home without having to sell it. It works by refinancing the mortgage with an income-only lifetime mortgage and then releasing some of the capital tied up in your property as cash. This means you could use equity release money for anything from starting or expanding a small business.