Personal Loan For a Small business?

Personal Loan For a Small business?

We’re very fortunate to live in an era with limitless technology at our fingertips.

At no other point in history has it ever been so easy to start a business:

All it takes is an idea, a laptop with an internet connection, and some good old-fashioned hard work!


Still, even if you do get your business off the ground on your own, you may find saving the money to scale and expand to prove more challenging yet.

If the only thing keeping you from growing your business is money, you may have decided to explore the world of business loans and business financing.

Lenders must use strict qualifying criteria and underwriting processes to avoid investing in businesses that fail.

Although this strategy helps them mitigate their risk, a consequence of such stringent eligibility criteria is that new businesses lacking a credit history can have trouble getting access to funds.

Lucky for us, the same technological advancements that have made it so easy for entrepreneurs to find success are also changing the way we shop for business loan products.

If you do encounter trouble qualifying for a small business loan, you can take comfort knowing you have other options:

A personal loan may be the best loan for your small business.

How Does It Work?

Here’s the key difference between personal loans that can be used for business and business loans:

Lenders put your business under a microscope when you apply for a business loan.

You may be asked to produce a business plan, your personal and business credit histories, multiple years of personal and business tax returns, financial statements, businesses licenses, and more.

Some business loans, called secured loans, require collateral like property or inventory to back the loan in case it goes into default.

Business loan contract terms may even require that you use funds for a specific purpose.

When applying for a personal business loan, your business’s credit history and financial outlook are not scrutinized.

Instead, your personal finances including your income and credit history are reviewed because you are personally liable for the loan.

It’s much like taking out a personal loan for any other big purchase like a home renovation project or a trip abroad.

After getting the stamp of approval, the lender deposits funds into the account of your choosing.

And you can use your loan any way you wish!

If you want to be able to obtain a loan but your bad credit prevents you from doing so, Contact Baby Boomers  Financial and we will be happy to help you on your journey to a better Credit today.