Wouldn't it be more prudent to find a seed capital or Angel Investor? You really don't need to have any fund raising experience, if you engage a company to help you complete your offering documents as well as manage your company’s capital acquisition campaign.
Depending on how much you need, you might try an SBA backed micro-loan. Most loans will st8ll require some typr of collateral; i.e. your house. You alos need to check the HELOC terms as to what you are allowed to use the money for.
If your business is only 2 months old, try to make a profit with the money you have before you go putting your house up for collateral. If you can not make a profit with the money you have invested, what thinks you are going to make a profit with borrowed money?
If you have a proven track record and can rely on a steady income stream from your business, then maybe it wouldn't be such a scary idea.
Figure there is a 95% chance of failing in the 1st 5 years; I wouldn't gamble the house just yet.
I've recently started a business completely funded by myself to this point. I'm at the point now where I require additional funding to offset day-to-day operations (including paying myself) and aquiring new assets. I am considering getting a Home Equity Line of Credit to do this because I have plenty of equity in the home. My only concern is that with this being a new business (2 months old) and I have yet to start producing an income with it, that I might have a problem getting the HELOC from the bank. Is the house as collateral and a good credit score enough to get the HELOC?
Any insight would be greatly appreciated.