Personal Loans For Business
Personal loans can be used for business as they are easy to get. These loans are unsecured because of which you don’t have to put collateral to get loan.
Why Use Personal Loan For Business?
Personal loan rely on credit of an individual and its rules differ from business loans. There is rare chance that you have to provide collateral to get personal loan.
Personal loan for business is a great option when your business is new and don’t have any established track record. This is the fastest and more convenient option than small-business loans.
Deciding For Personal Loan
The decision of using personal loan for business is dependent on various factors those need to be looked carefully.
When amount of money needed for your business is small than you can choose personal loan. Personal loan is hassle free as it requires less documentation than business loans.
Repayment And Time Period
If you need loan for short period of time than you can choose personal loan. You should be sure that you are able to repay your loan in the stipulated time or maybe early if you are choosing personal loan. The interest rates for the personal loans are high so it is better to repay early.
Personal loans are of unsecured nature which means you don’t have to provide collateral to get this loan which is beneficial if you don’t have collateral as security. This loan is good choice for you to raise cash .
Personal loan can be sanctioned in couple of days and require less documentation in comparison to business loans. If you are in urgent need of money for your business you can always go for personal loan.
Other Options Are Exhausted
If you have exhausted all other options of getting fund for your business you can go for personal loan. It depends on credit history of an individual.
Depends On Individual Borrower
Personal is dependent on the credit profile of an individual borrower. If you have other active loans than you may or may not get personal loan based on you income.
Benefits Of Personal Loans For Business
No requirement of collateral
Easy to qualify
Flexible repayment terms
How You Can Get Personal Loan For Business.
The borrowers who want personal loan for business should have good credit history and stable income. For getting personal loan you should have credit score above 600.The application process for applying depends on the type of lender. You can get personal loan from your bank which have longer process of application or you can apply online to a lender which will have more efficient process for application.
Drawback Of Using Personal Loan For Business
Personal loans have limit on how much you can get loan. You have to personally stick with repayment issues as in case your business is not much profitable or you decide to close the business, you still have to repay the loan. You get less support from the personal loan lenders than business loan lender.
Alternatives To Personal Loans
Business Line Of Credit:
The business line of credit gives you the access to funds from where you can draw the capital when you need. You have to repay only what you use.
These tend to be more open in offering personal loans, if you are recognized as repeat customer.
Business Credit Cards:
Business credit card can be a great means to get the large amount of fund when you need. These credit card are useful if you are going make big purchase.
Angel investors can provide you funding in exchange of a portion in your business. This type of funding has its own risk and benefit so it can be used alongside the personal loan.
What Our Clients Say?
Here are few reviews and comments from our clients.
The Financing Compass worked extensively with me to help me anticipate some of the issues that my business may face. Not many lenders would go to that length. They’ve been extremely supportive and a great resource.
Financing Compass enabled me to take advantage of an incredible opportunity to relocate and expand my business, at a pivotal time. The support I received from Financing Compass staff was priceless.
Working with Financing Compass helped me develop my business plan, ideas, and brand before getting started so that I was prepared to open a successful business when I received my loan.
Are You Looking For Our Services?
If you want personal loans for business you can contact us. We will provide you with the best service that will benefit your business.