Personal & Business Loan

Personal & Business Loan

A personal loan for business may be an option when other forms of business financing do not work.

A personal loan is money borrowed from one of our partnering lenders that can be used for any number of purposes, including funding a business. Most personal loans are unsecured, which means they do not require collateral, and you pay them back in fixed monthly payments, typically over two to five years.

Each Lenders have they own set of rules for Personal loan.

As long as your lender has no restrictions against using a personal loan for your business, you can use the money to purchase equipment and inventory, kick-start your marketing efforts or put toward other costs you encounter when starting a business.

Benefits of using a personal loan to start a business.

Flexibility

You can typically use the funds you receive from a personal loan however you please, whether it's toward marketing, product development, office supplies, or another purpose. This is especially convenient if you are a sole proprietor operating out of your home; you can split the funds between personal and business use to cover any shortfalls in your day-to-day expenses.

Lower APRs possible

Depending mostly on your credit score, personal loans tend to have lower annual percentage rates than credit cards, saving you money over the lifetime of the loan. They also have fixed payments that ensures your loan is paid back within a certain time frame, avoiding the possibility of letting interest pile up on lingering revolving debt.

Ease of qualification

For a first-time business owner with a brand-new business, you will not have some of the history that small-business lenders are looking for. lenders look at things like your company’s revenue and time in business, along with your personal credit score.

Personal loans, however, are underwritten based primarily on your credit score and your income. That means you can include other income sources.

If you are just getting started on your business venture, you may have more luck qualifying for a personal loan than a business loan, when underwriting business loans,

Small-business loans:

If you are an established or a new business and want to explore the options of business lending, P&J has a list of small-business loans, that are best for business owners. All of our recommendations are based on the lender’s market scope and track record and on the needs of business owners, as well as rates and other factors, so you can make the right financing decision.

P&J Open Doors consultant and Financial Services LLC partnering LENDERS offer consumer-friendly features, including soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau.

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