5 Different Loans for Stay-at-Home Parents to Start an Online Business

Starting a new business at home is a perfect idea to generate more income for your family when you are a stay-at-home parent –  especially during this pandemic.

However, you will be needing enough funds to finance the business that you want.

Even though you have an excellent and concrete business plan, you can’t make it happen without the necessary amount of money at hand. 

Hence, for you to turn your “open for business” signage into a reality, you may have access to funds through the form of applying for a small business startup loan. 

A business startup loan is an assistance offered to people who need financial support to start a new business. You can use it to purchase the machinery, equipment, furniture, supplies, and many others that you need for your business. 

If you are a parent who wants another income-generating option for your whole family, here are five different loans you can apply for.

Equipment Financing

Equipment financing is a type of loan that has a similar structure to other conventional loans but has an agreement to process the repayment within a particular period of time.

You can then use the funds to purchase the machinery and equipment that you need for your business. 

The good thing about this kind of financing is that it is less strict than the other loans. The equipment or machinery that you bought using the funds you borrowed will become the collateral for the loan.

It means that the bank has the legal right to seize the equipment in your business if you are not able to pay your loan to cover the total amount of money they’ve lost. 

Short-Term Financing

If you applied for traditional financing and didn’t qualify for it, your other option is getting short-term financing instead.

It doesn’t have a long-term repayment period, but it’ll give you a couple of months or a few years to complete your payments for your loan. 

However, it’ll definitely help you resolve your problem with finances in starting the online business that you want.

You can apply for a merchant cash advance loan or online payday loans. These loans will surely give you so much help to get you started with your business.

Applying for a Business Card

Credit cards are commonly used to conveniently pay bills and make purchases both online and offline. But did you know that you can also access a loan through a line of credit? It is a great alternative to get a startup business loan. 

In order to qualify for a business credit card, the bank will look into your combined income from your full-time job and business, and your personal credit score.

The good thing about it is that it’ll establish your business credit and separate your personal, and business funds in your credit card.

In addition, most business credit card issuers offer sign-up bonuses and great rewards that you can also enjoy when your application gets approved. 

Small Business Administration Loans

The SBA or Small Business Administration Loans will usually approve individual lenders when they apply for loans under SBA programs.

These loans typically have lower interest rates that will surely give immense help to those startup business owners like you. 

In fact, in the 2021 fiscal year, 17% of the funds that SBA lent to small businesses went to startup business owners under the loan program.

In addition, even though the process of the application for the SBA loan will usually take time, many people still want to apply and wait for approval because of the benefits and assistance they can get from the said program. 

Business Line of Credit

This type of loan is different from other traditional business loans. Instead of getting the full amount of your loan upfront, you’ll be approved to receive a particular amount of funds that you need anytime.

So whenever you paid that loan, your line of credit will be available again. It means that every time you pay the amount you borrowed in full, your loan will be closed and you can now go ahead and make one.


Starting a business at home is the most challenging part of your entrepreneurial career. It’s when you gather all ideas, information, resources, and funds to make your business a reality.

However, with the financial struggles brought by the pandemic crisis, if you see an opportunity to earn money, you’ll surely grab it for your family’s future. 

Hence, if you already have the plan for your business on your table but you don’t have enough funds to finance the establishment of the business you want, you can go ahead and consider the options discussed above.

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