Knock Knock Knock? Hey, it's the lucky break you've been waiting for! You've just seen a chance to put together a great deal for yourself, a "can't miss" opportunity. Or you've got a chance to invest in someone else's business from "the ground floor." Or maybe you've found the ideal property on which to build your new home. But can you afford it? The challenge is that you need $10,000 cash, and right away! Could you raise it overnight? Could you raise it at all? Actually, raising thousands of dollars in hours is easier than it sounds, and you can do it right now by using any of the ways shown here.
This step assumes you already have more than a couple no-fee credit cards like Master Charge and Visa which enable you to buy things when you want them even if you're temporarily short of funds. The "cash advance" privilege that these cards extend is the best way to raise the cash you need immediately, and with no questions asked. If you have reasonably good credit, your credit limit on each of your credit cards should be $500 to $1,000 at least, with premium credit cards offering $2,500 limit. If you have ten cards with the cash advance privilege of a $1,000 credit limit, you can simply go to the banks involved, and draw out your $10,000!
Aside from no-fee cards, there are also the travel and entertainment cards like American Express, Carte Blanche and Diners Club. These cards charge a yearly fee for holding them, and are more difficult to get (your annual income and your credit standing must be higher), but the amount of cash advances they allow you to draw on are higher, running as high as $2,000 or $2,500 each.
Most bank accounts today come with automatic overdraft arrangements whereby you can write checks for more than the balance you have in the bank. The bank will honor the overdrafts by merely automatically adding loan money to your account, and charging you the interest due for that loan. In effect, this is an immediate and automatic loan to you, without any current credit check. So go ahead and write a check for the full amount that you're allowed to draw upon, which is seldom less than $1,000, and which, in some banks goes to $5,000 or more.
If you're stuck for sources of capital for the business you have in mind, give some careful thought to whom you could ask to help you. Almost all of us have a favorite relative or two, and, if we're lucky, at least one of those may have money. Draw up a simple agreement on paper for both of you. You might even offer them a stake or percentage in your new business, if that's possible for you to do.
If your relatives are friendly to the idea, but they want to hold on to their funds, don't overlook another good idea. One of them can co-sign with you on a bank loan, and this almost always ensures that your bank will go along with a loan that they might otherwise have refused, or give you a loan for a much larger amount than they would have granted you on just your own personal credit. There little for your relative to worry about, just so long as you keep up the payments on the loan. Of course, co-signers are not restricted to relatives. You can have your best buddy, your girlfriend or a fellow employee co-sign for you.
Insurance policies can do more than just protect you. Depending on the type of life insurance policy you now hold, and especially if you've had it for a number of years, you may be eligible to borrow against its cash value. In most cases, this money is available to you at a very low rate of interest, and also, generally, you can keep the money out, providing you pay the interest, without having to repay the principal at any set time.
If you're buying the home you're living in, and have a conventional home mortgage, you may have a considerable equity built up that you can borrow against, or take a second mortgage out from either your bank or from professional lenders. In addition, your house may now be worth more than you originally paid for it. You might consider refinancing the original mortgage on your home.
While looking around for sources of cash, consider what you might have right in your own home. Some of those heirlooms, paintings or other antiques which you or your wife may not care for and which you may have stashed in the spare room or the attic may be worth a lot of money. Get appraisals to be sure of current values. Show them to a knowledgeable dealer or an antiques buff, ask about consignment sales in their store if they're not willing to pay you immediately. Post adds online for buyers of antiquities.
If you don't hold any credit cards now, you should begin to establish the credit that will enable you to get them in the near future. This will give you access to the fastest and easiest way to raise thousands of dollars in hours. Using the overdraft option can be especially handy if, at the moment you need the money, you happen to be unemployed and won't stand a credit check for a loan. It can also be helpful in getting start-up capital for a new business. Some banks look upon new business owners with disfavor, and might refuse to loan any money to you until you're big and successful. If you haven't done so already, you should begin to establish two or three bank accounts, each with automatic overdraft arrangements, for the next time you need to raise thousands of dollars in hours.