Another way to raise funds for a business you own a home are home equity loans.  Many people will react by saying, “I don’t want to risk our home” but if you own a home with equity the bank will probably ask for a lien in order to make the loan.  In either case your home is at risk.


Home equity can be utilized in one of two ways.

  1. Take out a home equity loan to use as a down payment, or
  2. Use the equity in the home as collateral and have a larger business loan


Each back will set this up differently, but in either case home equity can be an effective way to provide funding for a business.