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Can a Business have Financial equity in it as a House as equity in it?
If a Business is operated and existed for years, does it have equity in it just like a House does when the mortgage on a house is paid on?If so,can the equity in the Business be borrowed against just like a House?
1 Answer
- ?Lv 49 years ago
It's not a matter of how many years the business has been in operation. If the business has assets that can be sold for cash then it has equity. If there is more debt than there is equity then the business may be worth less than what it owes. If this is the case it may be very difficult borrowing against it.
You can get a business loan. Different lenders have different requirements. Interest rates are different depending on where you go. Sometimes the terms can be tied to how well the business is doing so you need to be careful and read any documentation before taking out a loan.
There are lenders that specialize in that type of lending.