Personal Business Loans: Everything You Need to Know
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What is a Personal Business Loan?
Business Loans vs. Personal Loans
Pros of Personal Loans for Business
Applying involves less documentation than business loans typically require. Approval is usually faster than for a business loan. You should be able to get your money in a lump sum, which is not always possible with a small business loan.
Cons of Personal Loans for Business
You may not be able to borrow as much as you would with a conventional business loan. It won’t help build your business credit. If you default or are late with your payments, it can count against your personal credit, and, ultimately could lead to personal financial meltdown. Not all lenders will issue personal loans for business purposes.
Where to Find a Personal Loan for Business
Alternatives to Personal Business Loans
When to Take Out a Personal Loan
Operating during a slow season Expanding operations Purchasing larger orders of inventory Capitalizing on business opportunity
How to Qualify for a Personal Loan
Applying for a Personal Loan
Recent pay stubs, W2s, and/or taxes returns Government-issued photo ID
Social Security number Date of birth Contact information Employment and income details Gross monthly income Mortgage or rent payment
The Takeaway
Frequently Asked Questions
About the Author
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