The first place to look for financing is your personal savings. Consider all of your accounts, including traditional savings, certificates of deposit, and money market accounts.
While it is often better to borrow against your own funds than from other sources, consider the issues before you start.
Issues to Consider
Assemble recent statements for all of your savings accounts, including traditional savings, money market access, and certificates of deposit.
Prioritize each savings account from lowest to highest earning, and liquidate in that order, as needed.
Thoroughly investigate any withdrawal penalties prior to closing any of your accounts.
Diminished savings may work against you should you seek a commercial loan. Most lenders look at your savings prior to awarding a loan.
Compare:
Advantages
Funds are available immediately.
There are no interest charges or processing fees.
Disadvantages
Withdrawal penalties can be high.
Personal savings will not fully fund most business ventures.
You will not have any fall-back cash in times of emergency.
