Household Finance Loan to Start Up a Small Business

by HomeLoan.com

Household Finance is owned by HSBC Bank, a British banking giant.
Household Finance was established in the early 20th century. However, due to the 2008 credit crisis and the financial meltdown that followed, Household ceased all lending activity permanently. Existing customers can still get customer service through Household and all open accounts will remain on the books until repaid. However, Household Finance is a division of HSBC Bank, where customers can get a variety of business loans.

Existing Borrowers

Existing Household customers need not worry about their accounts--business loan customers or otherwise. These accounts will be fully serviced until they're repaid. Household is still handing all aspects of customer service on its open accounts.

Partnership with HSBC Bank

HSBC Banking Corporation purchased both Household Finance Company and Beneficial Finance in 2002. This was one of the largest and most controversial subprime purchases ever. Household Finance had just exited from a massive class-action lawsuit, and as a result has paid over $400 million to customers who had been overcharged for loans. HSBC brought an air of legitimacy to the scorned finance company.

HSBC Business Loans

HSBC Bank offers a wide variety of business loans. First, for business customers, HSBC has a line of credit that can be used as start-up capital for a small business. A line of credit business loan can be effective as the terms are flexible and borrowers can take advances when needed.

HSBC SBA Loans

HSBC bank also offers SBA (Small Business Administration) loans. These are government-insured loans financed by private lenders. The goal of the federal government's SBA program is to stimulate new growth in the economy and encourage citizens to innovate and create jobs. An SBA loan at HSBC can offer a new business owner as much as $350,000 for start-up costs.

HSBC Term Business Loans

A term business loan is similar to a closed-end mortgage. The terms of the loan are fixed and there is a standard payment based on the full advance. Once all payments are made on the loan, it is repaid in full. Borrowers cannot re-access these loans.

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