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There are lots of ways to get additional capital to expand a home-based business. But before you look outside for financing, leaving the decision about your company’s progress and merits to someone else, consider t

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

hese six ways under your nose to finance your home-based business:

Personal Savings

Savings are easy to tap and involve no paperwork.

The negatives: if you use the money in your business, it eats into your safet

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

y reserve and is no longer there for emergencies. It diverts funds from a very low risk investment to a high one.

Whole-Life Insurance

Whole life policies accumulate tax-deferred cash value that you can tap for y

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

ur business. But the only way you can tap this cash without paying taxes is to borrow against your policy. As long as you keep your policy intact and pay premiums when due, loans remain tax-free.

The negatives: yo

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

u will be converting a low risk investment into a high one; if you decide to terminate your policy or if you default on repaying your loan, taxes will be due on all cash value accumulated under the policy; if you d

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

e before your loan is repaid, any distributions to your beneficiaries will be reduced by the amount of your outstanding loan.

A Loan from Your 401-K Plan

You can borrow up to $ 50,000 of the money you have saved

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

under many 401-K plans. There are no credit checks. Interest is usually a percentage point or two above the prime rate and the interest that you pay back to the plan will be tax-deferred to the plan. Most loans are

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

repayable out of salary deductions over five years.

The negatives: you will have less money invested toward retirement; the dollars used to repay the loan will be after-tax dollars withheld from your paycheck; if

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

you fail to repay the loan, the IRS considers your failure a premature distribution -- you will be charged taxes on the borrowed amount plus you may be assessed a 10% early-withdrawal penalty.

A Home-Equity Loan

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

hese loans do require that you apply and be reasonably credit worthy. You generally can borrow up to 80% or 90% of the equity value of your home. Interest on these loans is generally tax-deductible.

The negatives:

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

you will reduce the equity value of your home by the loan amount; you will be diverting funds from a relatively safe investment to a high risk one; if you default, you put your house at risk of foreclosure. Think

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

very carefully before using this form of financing.

Personal Credit Lines and Credit Cards

They are convenient, versatile forms of financing. You can borrow and re-borrow up to the line limit as needed.

The nega

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

ives: you will pay relatively high interest rates-- rates range from 12% to over 18%; the minimum monthly payment on many of these arrangements will repay the outstanding balance within 42 months; it is easy to dig

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

yourself deep into debt using credit lines and credit card debt; high outstanding balances against your line can negatively impact your personal credit rating.

A Margin Loan

You can use margin loans for purposes

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

other than buying additional securities.

Any margin loan will be secured by your equity shares. Rates are often below prime, applying is relatively easy, and these loans have very flexible repayment terms.

Loans

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

are initially limited to 50% of the purchase price of your equity securities. Loan repayments are triggered when the value of your stock falls below the margin limit.

The negatives: Because borrowings are predicat

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

d on volatile stock values, a margin loan can be a risky proposition; if you default in repaying, the brokerage firm can sell your securities to satisfy the loan; an untimely sell-off can have a devastating effect

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

on your portfolio and negative tax consequences.

The only safe way to consider a margin loan to finance your home-based business is to limit advances to a relative low ratio of your stock portfolio value – say, 25

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

or less.

Most of these financing methods are under your control and don’t require business plans or company financials to qualify. Although each of these methods has risks and disadvantages, so do most external m

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

ethods of financing. Before proceeding with one of these financing methods, carefully consider the potential benefits, risks and consequences. Whatever you decide, it helps to know the options right under your nose

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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In its annual report on the biggest billionaires of our time, the authoritative Forbes magazine once again named Bill Gates as the richest man in the world with a net worth of $50 billion.

Immediate annuity is a type of annuity in which the contract owner starts getting payments after a single premium is paid. Payments can be made on a monthly, quarterly, annual or semi-annual basis. The rate of payment in immediate annuity is of two types, fixed rate and variable rate. The fixed rate guarantees a set income that will not fluctuate, whereas in variable rate payments will fluctuate according to the performance of selected investment the annuity is based on.

If you thought home party business opportunities was a thing of the past, you’re wrong. They are alive and making more money than many people can imagine. It isn’t just Tupperware anymore either.

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