Use your home equity to fund business expansion, startup costs, equipment purchases, or working capital. Mortgage rates are typically 3-5% lower than SBA loans and 10-20% lower than business credit cards. Dream Financial Management since 1994.
| Feature | Cash-Out Refinance | SBA 7(a) Loan | Business Credit Card | Business Line of Credit |
|---|---|---|---|---|
| Interest Rate | 6-7% | 8-13% | 18-29% | 7-15% |
| Term | 15-30 years | 10-25 years | Revolving | 1-5 years |
| Collateral | Your home | Business assets + personal guarantee | None (unsecured) | Business assets |
| Funding Speed | 30-45 days | 60-90 days | 1-2 weeks | 2-4 weeks |
A cash-out refinance uses your personal residence as collateral for business funding. If the business fails and you cannot make mortgage payments, you could lose your home. This is the most important risk to evaluate before using home equity for business purposes. Consult with a financial professional to evaluate whether the business opportunity justifies this risk.
Dream Financial Management connects you with lenders offering cash-out refinance for business funding — at mortgage rates far below business loan alternatives. Since 1994.
Fund Your Business — Free Consultation