What to Do If Your Home Business Is Running Low on Funds

Guest Post by Brooke Chaplan

Operating a business from home can be highly rewarding in developing creativity and establishing professional independence doing work that you enjoy. However, sometimes funding can run short due to various factors, like decreased productivity due to personal illness or equipment failure. Knowing that financial shortages can occur, entrepreneurs need a backup plan to keep the budget healthy.

Supplemental Income

If you have some extra time and opportunities are available, you may be able to earn extra income temporarily by taking on a second job that works with your business schedule. For example, you could walk neighbors’ dogs, pick up groceries and prescriptions for shut-ins, or write articles and ads for other people’s websites. These are just a few of the many kinds of work you may be able to do for a few hours each week to earn additional income to cover your business shortfall.

Savings or Investments

Long-term investments, retirement funds, and savings accounts could also be tapped short-term to ease your home business over a bumpy stretch of commerce. As soon as things pick up again, pay your accounts back, with interest if possible, and everything should be fine.

Of course, an emergency savings account is a good idea for times when business is slow. Explore your options for the best way to replenish low business funds temporarily without getting further into debt.

Home Equity Credit Line

If your business is located in your home that you own or are buying, you may be able to quality for a home equity line of credit. Depending on the amount of equity in your property, the available credit may be able to cover your business operating expenses until operations are back on schedule. You can sometimes get a low-interest introductory rate on a new home equity credit line, so ask about current or upcoming special rates.

Business Loan

You also may be eligible for a small business loan. Ask local lenders about the type of loan that would best suit your needs based on varying factors, such as interest rate, loan terms, and any collateral requirements. Prepare a business plan if you do not already have one, and take it with you to discuss loan options with your preferred lender. Make sure you get approved for monthly payments that are affordable and won’t put your company in worse financial jeopardy. Late payments and penalties could set you further back and lower your credit score.


Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most of her time hiking, biking, and gardening. For more information, contact Brooke via Facebook at facebook.com/brooke.chaplan or Twitter @BrookeChaplan

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