PERSONAL LOAN TO START A BUSINESS
A business loan alternative
Get business funding even if you can’t qualify for a business loan.
Can you use a personal loan for business?
Usually, you can use a personal loan to start or grow a business. And it might be a good option if you can’t qualify for a business loan or if you want to borrow a smaller amount of money. It’s generally easier and faster to qualify for a personal loan. On the flip side, lending amounts are more limited. And because your personal credit will likely be tied to your personal loan, any issues with repayment could damage your ability to secure future financing.
Lower rates with a strong personal credit score
Your personal credit history is key to qualifying for a personal loan with rates that are competitive with a business loan. While you might not have a proven business credit history, if you’ve been well organized and on time with payments in your personal life, you can leverage that credit strength to get the best rates. Be mindful that you’re likely to find shorter repayment terms with a personal loan than with a business loan.