Home Based Businesses Are Not Lendable Businesses

Often times, people wishing to start a business don’t realize the importance of having an office location away from their residence.  To save money, they reason, they can just run it from home for a few years until things “take off.”  Well, this instinct is dead wrong.  Quite often, this choice is an accurate indication that the owner is not serious or knowledgeable enough to run a viable business.  No business credit lender in America will lend to a home-based business, as business credit itself requires any business (big or small) to have a separate physical address from its owner’s home.  Without one, that business will never be able to put the correct credit in place and obtain true business financing—financing in the business’s name only, and not personally guaranteed.  A business owner must actively separate the business from his or her personal assets—by incorporating legally and setting up a separate physical office address.  By keeping the business at home, the owner is risking his or her reputation, as well as personal assets.