How to apply for home equity loans for your company?

It is very common to find freelancers who have a very low liquidity, even zero at times. At this point, it is common for many freelancers to have numerous unpaid assets, which they cannot cope with due to the absence of liquidity.

This issue, although it mostly affects freelancers, is also comparable to other types of companies. Although it is not easy to get out of a situation like this, in the following lines we will try to give you some tips on how to save a company without liquidity.

My company has no liquidity, what do I do?

My company has no liquidity, what do I do?

The first thing you should do is a rigorous analysis of the situation and establish whether the lack of liquidity is persistent or is a timely moment.

If we are in the first case (without liquidity on an ongoing basis), the most viable way of subsisting as a company will be the capital increase.

To increase capital, a highly recommended option may be home equity loans, provided you have a property such as offices, an industrial building or a home.

How to save a company without liquidity?

Liquidity problems are one of the major concerns of freelancers and small businesses. However, there are currently numerous routes or exits that can give you some air during these difficult times.

Therefore, if your concern is how to save a company without liquidity, you should know that one of the most recommended and most viable options is to obtain this liquidity from a loan with a property guarantee .

How to apply for home equity loans for your company?

How to apply for home equity loans for your company?

As we have said, if you have a property your liquidity problems can be solved. Through home equity loans, you can get quite high amounts of liquidity.

You have the possibility of putting different types of collateral for the mortgage loan for companies:

➤ Housing

➤ Offices

➤ Land

➤ Industrial building

And you will also have, unlike a conventional business loan, in a home equity loan you will have to meet very few requirements:

✔ Be of legal age

✔ Be the owner of the property that you put as guarantee

✔ That said property does not have economic charges or that is at least paid at 80%

How much money can I get with a home equity loan?

How much money can I get with a home equity loan?

Applying for a loan with a property guarantee for your company is one of the most favorable options if you are thinking about how to save a company without liquidity. This is because you can get very high amounts through this type of financing.

The maximum amount you can get with a loan with a property guarantee will depend directly on the appraisal and the value of the property, the maximum being 40% on the appraisal or, where appropriate, up to a maximum of $ 500,000 .

Tips on how to save a company without liquidity

In addition to home equity loans, there are other solutions, such as the advance of invoices by the bank or the discount of promissory notes. It may be a correct solution for a while, but it is not something that can be maintained for a long period of time .

Other of the solutions that have gained the most popularity are the renegotiation with extension of the maturities or the search for other capitalist partners , giving in return a participation in the business according to the contribution made.

All of these solutions, such as business loans, have intrinsic risks that must be analyzed, allowing the decision to be deliberate and adapt to the characteristics and needs of our business .