Credit financing is another viable, albeit riskier, option for your business. It’s possible to acquire credit financing from a home equity loan or directly from your credit card.
A home equity loan puts your house as collateral against your business. This means that if you’re unable to pay back your loan, you can lose your home. We would not recommend taking out a business line of credit or loan against your house because it’s extremely risky and you stand to lose a lot.
A safer credit option comes from business credit cards. You can use these credit cards to pay expenses that are directly tied to your business. Once you’ve accrued the revenue from a project, you can use it to pay off your credit card debt. While still risky, business credit cards can be invaluable for businesses that don’t need much money.