As companies grow, there may be a need to expand office space. But what if your growing company is a home-based business? Perhaps, despite family objections, you’ve not only taken up the home office, but also the guest bedroom — with the basement also full of inventory. Building codes and HOAs may eliminate the notion of building an addition to house your expanding operations. The only viable option left if you’re going to keep your home as a base for your business is to buy a larger home.
While homebuying is an everyday occurrence, you may need to consider some additional issues — from qualifying as an entrepreneur to whatever debt you’ve incurred. Small business owners often struggle with financing their businesses, and those struggles can lead to crippling debt. BSI helps families and business owners alike extricate themselves from the payday loan cycle. These short-term loans can seem like a fast and easy way to quickly cover business expenses, but they, and other debts, could also derail your plans of buying a larger home for your growing business.
Itemize your debt.
One of your first tasks is to itemize your debt and see if you have the capabilities to pay it off. If you took out a home equity line of credit, or HELOC, to help finance your business, this can be paid at closing when you sell your current home. Get a copy of your free annual credit report and review it carefully so there are no surprises.
Note that if you have payday loans and they are not showing up on your credit report, this does not mean that you don’t have to pay them. Many payday lenders don’t report to major credit reporting agencies. However, some do use other credit agencies and, if you don’t pay your payday loans, they can be sold to third-party collection agencies. Once that happens, they will likely be reported.
Get help instead of agonizing.
If you don’t see an option for paying off your debt in a timely fashion, don’t waste any additional time or energy worrying about it: Seek help! Many consumers and small business owners get overwhelmed with debt at some point in their lives, so don’t feel embarrassed. A professional debt relief and management provider will understand your state’s debt collection and relief laws and will act on your behalf. By examining your credit report and your records, they can determine if any creditors are attempting to illegally collect on old debts. They can also see if any of your debt qualifies under the state forgiveness programs.
Your options will vary based on the amount of debt and your ability to pay it back. In some cases, such as with credit card debt, it may make sense to explore debt consolidation options. Professional debt management can help you navigate the ins and outs of the process to get you on your way to buying that larger home.
Line up your ducks.
Once you’ve handled your debt situation, it’s time to review the other items on the homebuyer’s checklist. With your credit situation managed, you need to assess what your maximum purchase price will be or how much you can afford to pay for a home. Since you are a small business owner, make sure you have your business financial documents in order.
A mortgage lender or broker can help get you pre-approved, which will make you more attractive to sellers and facilitate your closing. In situations where a buyer is dealing with some credit or down payment issues, a broker can approach several lenders to help you find the best option for your circumstances. Contact a real estate agent to get your current home on the market and help you in your search for your next home and business base.
Free yourself to grow your business.
At Big Solutions, we have watched our clients emerge from under the heavy cloud of onerous debt and go on to pursue their dreams and ambitions. You have managed to come so far in your business that you outgrew your current home. Once you have the information and guidance to loosen the grip of debt, you will be astounded at how far you can go in a new home and living space to accommodate your business and your family.