So you have reached the point where you know you want to start a home-based business. You recognize you want to do something to secure your financial future, and your research tells you that in the new economy, establishing a home-based business is a very good option for the average person to earn some extra money every month. You are excited, nervous, and perhaps a little scared – all natural emotions to feel at this stage of the game.One of the biggest decisions a person considering a home-based business must make is what business to start. It is easy to get swept up in the hype and glamor many home-based business opportunities promote to attract new people to their company, but beware: while there are certainly great companies out there that have many people succeeding, a lot of the hype you will see advertised is merely that – a means of luring people into what amounts to nothing more than a shell game.Now, almost every company out there uses promotions of one kind or another to attract people to buy its products (this is called advertising) or, in the case of relationship marketing organizations, attract people to join its sales force. There is nothing inherently wrong with promotions – they are part of the fun and many of them are indeed very lucrative. But intelligent home-based business seekers will do whatever you can to avoid this costly mistake when starting a home-based business – you will look beyond the hype and find out who the people are working the business.Once you have found the people and actually talked to them, smart home-based entrepreneurs will then ask these important general questions before making their decision to join a team:o Why are you involved with this company?
o How long have you been with this company?
o What is your experience with this company?
o How will you help me succeed?
o Can the average person like me win with this company?
o Can I meet this company’s management team and top field leaders personally?Like any big decision in life, it is so important to ask a lot of questions up front. In the end, doing so creates a win-win situation for everyone: you win because you feel confident about the company you will join and who you are going to work with, and your sponsor, or mentor, wins because she know you have made an educated decision and will be committed to yourself and your goals with the business.Going into business for yourself is indeed an exciting venture, but it can also be overwhelming, especially in the beginning. As a home-based business entrepreneur, you want to be certain you have joined a team who is there to support you and help you as you get your business off the ground. Because of the special dynamics many home-based entrepreneurs face, such as balancing responsibilities for family and perhaps a job with starting a business, you want to make sure you are working with people like you who have walked your path, so to speak, and thus know how to help you according to your circumstances. The last thing any new home-based entrepreneur wants is to discover too late that the person who sponsored them into the organization is never available or incapable of helping you succeed.Avoiding the costly mistake of jumping into something because it promised big results for little effort or because it seemed like a good deal at the time will save you not only money, but heartache as well. Take the time to get to know the team of people you will be working with first. When you find the right people who have your best interests in mind, you will be rewarded handsomely for many years to come.

If you’re trying to start your own small business, you likely already know that it’s nearly impossible to be approved for a bank loan to secure the funds you need. With increased regulations and stricter lending standards placed on banks after the 2008 financial crisis, they simply aren’t handing out loans to aspiring small business owners like they once were. Thankfully, other avenues have opened up for determined entrepreneurs ready to fire their boss and secure their financial futures.

In fact, last month, Prosper and Lending Club, the two largest peer-to-peer lending sites, were responsible for more than $280 million in loan originations. The rise of peer-to-peer, or P2P, lending has been well-documented, and it’s estimated that the burgeoning industry has generated more than $3.4 billion in loans since being launched in 2006.

While the majority of the loans issued by these sites are used for debt consolidation, Lending Club, Prosper, and other peer-to-peer lending networks also provide credit for small businesses, offering them an additional borrowing option that didn’t exist a decade ago. By matching entrepreneurs and ordinary individuals with investors, peer-to-peer lending networks are able to take banks and middlemen out of the equation, providing low, fixed-rate loans to people to be used however they want.

Thus, if you’re seeking capital to start a small business, peer-to-peer lending has become a premier funding solution.

Who Qualifies for a Peer-to-Peer Loan?

The majority of peer-to-peer lending networks don’t provide business loans. However, if an entrepreneur or a potential start-up needs a loan to pursue a business idea, they can borrow as an individual. Instead of the loan being issued to a business entity, it is issued to an individual, and he or she can use the funds however they want. The loan will simply be categorized as personal debt.

While this is true for most peer-to-peer lenders, peer-to-peer lending networks specializing in funding small businesses in need of $35,000 or more now exist as well. Therefore, budding small business owners can turn to peer-to-peer lenders for any of their financial needs.

Understanding Peer-to-Peer Lending

Peer-to-peer lending is similar to eBay. You simply set up an account at one of the peer-to-peer lending networks, such as Lending Club, read the site’s borrowing guidelines, and review the types of loans they fund. Although Lending Club and Prosper don’t officially provide business loans, they do fund entrepreneurs looking to start a small business.

After registering an account, you simply enter in the loan amount you’re looking for and the maximum interest rate you are willing to pay. Once your listing is created, investors will begin sending you bids stating the amount they’re willing to lend you and the interest rate they would like to charge. As with any type of lending or financing, the higher your credit score, the better.

It’s also important to note that you need a credit score of 640 or above to receive funding from most peer-to-peer lenders. If you have a good credit score and history, you may receive a lower interest rate than you expect, because unlike traditional lenders, peer-to-peer lenders provide loans starting at only 6.78 percent.

Best of all, the monthly payments and interest rate are fixed, and the interest rate is amortized as well. There is also no prepayment charge, so you can pay off your unsecured small business loan as soon as you want without penalty.

As mentioned earlier, since you may need more than the $35,000 maximum loan amount offered by most peer-to-peer lending networks, some peer-to-peer lenders, such as Dealstruck, are now specializing in providing larger loans of $100,000 or more to the small business market. Typically, sites like these offer two to five-year loan terms with low interest rates starting at only five percent.

The Cost to Peer-to-Peer Borrowers

Businesses often find that borrowing from a peer-to-peer lender is much cheaper than borrowing from a bank, because there is no middleman involved. In addition to having more overhead, banks are still struggling to recover the money they lost during the financial crisis.

This added financial stress trickles down to borrowers in the form of higher interest rates, if they are able to get a loan at all. Since peer-to-peer lenders compete with one another to provide you with the loan you need to start your business, you’re able to benefit from the lowest interest rate possible.

From Dream to Reality: Rob’s Story

Two short years ago, Rob Strong dreamed of opening his own landscaping business. Although he pinched pennies and saved for years, he still found himself in need of additional funding to purchase the equipment necessary to finally launch his dream of being his own boss.

Sick and tired of fattening someone else’s pocket each day, one day Rob decided enough was enough. Unfortunately, he still needed $10,000 to buy all of the necessary equipment, so he went to his bank with the business plan; he spent hours upon hours completing in order to get a small business loan for the money he needed. Despite banking there for years, the banker denied his application because his credit score was only five points below the threshold.

“What am I going to do now?” he asked himself. Luckily for Rob, he was browsing online two days later and ran across a major peer-to-lender. “It’s worth a shot,” he thought. After spending five minutes filling out the application and setting up his profile, he turned his computer off and waited. Two days later, Rob signed in and was shocked to see that 50 investors had provided him with bids. The next day, he received the full amount he needed.

Two years later, Rob’s landscaping business is in full swing. He now has 20 employees and earns six figures a year while “working” 20 hours a week.

There are thousands of people who share Rob’s story. Thanks to peer-to-peer lending, people across the country have been able to achieve their dreams of becoming small business owners. With the peer-to-peer lending industry growing each day, thousands more are sure to become small business success stories as well.

There are some very successful home based business opportunities out there. For one of the most exceptional choices, surf right onto Steve’s Website and read what he has to say. For more in depth information, it’s important that you sign up for his list so you can fully explore his business in a box program.Every new and established home based business requires a blueprint to be successful. The blueprint is the business’s framework and direction. It’s the overall structure and plan that needs to be followed to ensure adequate profit and a smooth flow of positive customer and client interactions and suitable everyday transactions.It’s exciting to know that this program has been established for new people to join. It has an exclusive blueprint that you can learn more about by visiting the site and signing up.The blueprint for a home based business, if laid out right, will ensure its successful start up and operations. It’s a sort of formula for establishing the correct methods, strategies and concepts for everyday, ongoing operations.A blueprint for a home based business usually starts with the business model. Next, is the business mission. Then what’s required is a proven pattern for success.The money that needs to be raised is determined as part of the blueprint. Every home based business needs money for an operations area, which could be as simple as furnishing a home office.But this aspect is extremely important, since you’re going to be working in that environment for many hours a day. If you’re operating a service oriented business, you’ll have expenses for the telephone, perhaps the Internet, employees, and even operational supplies, which will vary from each different home based business.The blueprint also will forecast your income and expense projections for the first year or two of operations. This can be easily calculated for a given home based business by studying the financial pattern of past successful businesses in the same operational area of focus.Another element that the blueprint takes into consideration is your cost of acquiring clients. These consist of the specific, individual expenses that a home based business incurs by contacting customers for potential sales leads.This cost can be substantial if not planned out correctly. But with the best business programs, these expenses can be minimized.The projected future profit of the business spanning five or more years should also be a significant consideration in the overall blueprint. This is important because sometimes the longer a business is operating the harder it can be to sustain it, as more and more costs mount from different areas.The best blueprints leave nothing to chance. Every aspect and angle is covered, from something seemingly as nominal as the monthly Internet bill to high utility costs to operate the home based business.