In the movie Office Space, the character, Peter Gibbons, muses that "Human beings were not meant to sit in little cubicles staring at computer screens all day, filling out useless forms, and listening to eight different bosses drone on about mission statements." If you've experienced Peter's plight personally, you may desire to go into business on your own. If self-employment is on your horizon, it pays to know how your home equity can support your vision.

Self-Employment Financing

More and more of America's employees are turning in their badges and venturing into the exciting world of self-employment. The reasons behind the trend are clear: Established entrepreneurs often enjoy higher earnings potential and greater personal satisfaction and freedom than those who punch a time clock.

You may have a start-up idea, or the opportunity to purchase an established business. Or you might already be self-employed and in need of additional capital to take your business to the next level. Traditionally, entrepreneurs look to the Small Business Administration and the business lending market to obtain needed funds. But these sources usually require you to make a personal contribution to your business before the loan is funded.

The helpful home equity loan

A mortgage refinance or home equity loan can help you on three levels. If the business loan requires a personal contribution, you may be able to fund some of it through home equity financing. Or, if you've drained your personal bank accounts to come up with the cash contribution, your home equity funds can cover any unforeseen personal or business expenses until you're making regular profits.

The difference between the success or failure of your business often depends on whether you have enough capital to support it. Give yourself every advantage in this regard. Just be sure to plan ahead. It's easier and less expensive to obtain a mortgage refinance or home equity loan while you're still gainfully employed.

If the budding entrepreneur in you is ready to break out of your office cubicle, consider your home equity your first and most flexible investor. It can help free you to thin-and live-outside the box.