Issue link: http://cp.revolio.com/i/142672
finance your vision When All Else Fails Depending on the size and economic health of your practice, the only source of expansion money available to you may be what you can dig up on your own. Be advised, though, that each of these money sources carries special risks. Friends and family members. If you have a friend or family member able to help with financing, you may find this to be the easiest type of loan to obtain. Use caution, however. Most financial experts agree that mixing business and personal relationships can lead to destructive problems in both your business and personal life, especially if you aren't aware of the pitfalls. If you do take a loan from a friend or family member, make sure that all details are carefully spelled out in a written contract. Home equity financing. If you have enough equity in your home, a second mortgage may provide all the money you need. While the interest rate on this type of loan may be among the most favorable, keep in mind that it also puts you at risk of losing your home if your business falters. Credit card financing. You may have credit cards with lines of credit substantial enough to fund all or part of your expansion plans. While it can be tempting to simply charge everything, this is arguably the riskiest and least desirable of all financing methods, especially in today's volatile economy. The burdensome interest rates charged by credit card issuers can become impossible to meet if your practice hits even a minor bump in the road. The result could be a severely damaged credit rating—or even the loss of your business. When you need to raise money for your business, say most experts, a thorough and detailed business plan is the key to the safest and most desirable types of financing. While other conventional sources of money may seem the easiest to find, they are seldom the wisest choice. SPH William J. Lynott is a former management consultant and corporate executive who writes on business and financial topics for a number of consumer and trade publications. He is the author of Money: How to Make the Most of What You've Got.