While this is not necessarily a story about a single customer, this applies to many of the customers that come through our doors, or we meet over the years. 

I cannot stress enough how important it is to consult with a business loans company, or a lender before coming to us regarding mortgaging your home if you want to start a business. 

Many customers decide to take out another mortgage within their homes, or a personal loan against their own home when they want to start a business. If you own a home – especially one that is valuable on the property ladder – then it may seem like an attractive offer. However, there are business loans that you can receive that act the same way but for a much lower interest rate. 

If you are looking for a loan to start your own business, then try a business loan calculator and see the results of it. It will help you to understand the rates and types of loans that you may be available for if you want to start your own business against what it could potentially cost for a loan that is not serviced towards what you really need. 

While this may sound like strange advice, I would not suggest someone to take out a loan if the loan does not suit them. There are plenty of lenders who are willing to be flexible, and some even ask for repayments in percentages of net earnings month by month rather than a set fee, helping you with repayments. 

If you are looking to start your own business, there are always better options than risking your own home against. At worst, if you fail to pay off a business loan then they will take your business property or inventory, rather than your own home. Which is a much better option. 

Why not just rest and sit back and sink your head back on a bath pillow and think about one of the biggest decisions you can make.