Starting a business is a big step that requires both courage and capital. An Equity Sharing Agreement, often compared to HEIs (Home Equity Investments), can help you access the funds you need to launch or grow your dream without the burden of a new monthly payment.
Instead of monthly loan payments, you share in the future change of your home’s value, paid when you sell your home, buy out the agreement, or after 30 years pass.
The Challenge: A Growth Opportunity
Meet Robert. Robert has worked in the landscaping industry for years and wanted to start his own company. He found the perfect equipment and a small warehouse space, but he needed $60,000 to get everything started. While Robert had a lot of equity in his home, he didn't have enough cash in his savings account to cover these startup costs. He knew he needed a financial partner to help him make the leap into business ownership.
Why Different Loan Options Weren’t the Best Choice
Robert first looked into a small business loan and a home equity loan. Both options required him to start making monthly payments immediately. Robert was worried because he knew it might take a few months for his new business to start making a profit. Adding a $600 or $700 monthly loan payment on top of his existing mortgage felt too risky. He wanted a way to get the $60,000 without increasing his monthly overhead during those critical first months of business.
The Solution: A Modern Approach to Funding
Robert chose to use an Equity Sharing Agreement. Unison provided him with an upfront payment of $60,000 he needed to buy his equipment and secure his lease. Instead of charging him interest or requiring monthly payments, Unison shares a specified percentage of the total future value of the home when he eventually sells his house or the agreement ends up to a 30 year agreement term.
- Capital Without Debt: Robert got the cash he needed without taking on a traditional "debt" that required monthly payments.
- Focus on Growth: He could reinvest his early business profits back into marketing and hiring instead of sending that money to a bank.
- Shared Risk and Reward: Unison co-invests alongside Robert. If his home value increases, Unison shares in a specified percentage of that value; if it decreases, Unison may share in that loss.
The Outcome: Launching with Confidence
Today, Robert’s landscaping business is thriving. He was able to get his equipment and start serving customers right away. Because he didn't have immediate monthly payments, he felt much more secure during his first year of operation.
As Robert noted: "I had the skills to start my business, but I didn't have the $60,000. By partnering with Unison, I was able to use the value in my home to build my future. Not having a monthly payment to worry about while I was finding my first customers was a huge relief."
If you have a business dream, an Equity Sharing Agreement may be the tool that helps you reach it. We are here to help you turn your home’s equity into an opportunity for your future.
Disclaimer: This sponsored content is for informational purposes only and is not financial, legal, or tax advice. Unison’s Equity Sharing Agreement (ESA), offered through Unison Agreement Corp., provides cash upfront with no monthly payments or interest charges. In exchange, you share a percentage of your home’s future appreciation (or a limited portion of any depreciation) when the agreement ends (upon sale, refinance, buyout after 5 years, 30-year term, or death/default). If your home depreciates, Unison typically shares in a portion of the loss, subject to program limits—you may still owe the full advance amount. A lien is placed on your property, which may limit future refinancing options. There may be tax implications (e.g., potential recognition of income on forgiveness of advance if the home depreciates). No guarantees are made regarding home value changes or outcomes. For complete terms, eligibility, and details, visit unison.com. For traditional lending products, see Unison Mortgage Corp., NMLS #2574289. Always consult your own financial, legal, and tax professionals before proceeding.