People get personal loans for a variety of reasons, including: B. Debt Consolidation, Medical Debt Repayment, or Expensive Auto Repair.
However, there is one more thing the average consumer should know. There are personal loans for small businesses.
Despite the label, a personal loan may be just what you need to keep your business going.
Personal microcredit can be used for certain expenses, such as:
- Equipment (printers, tools, copiers, production equipment, baskets, etc.)
- Office space (purchased or rented)
- Marketing and advertising (digital, promotional, print, etc.)
For all business expenses, personal 소액대출 are a viable option if your business does not have additional capital but needs cash to grow.
Small Business Loans and Personal Loans
Most small businesses that need the resources they need to expand their business often seek out small business loans. This makes sense because business loans are often beneficial to small business owners.
In some cases, small business loans help business owners buy expensive items such as equipment, supplies, or raw materials. However, the industry standard for small business loans is not always the answer.
The biggest problem with small business loans is the stringent requirements. This applies not only to admission requirements, but also to the application process.
The biggest challenges are:
- Long application process that can take hours of your valuable time
- The following documentation requirements. Provide business plan, tax return, reference and financial data
- It can take a long time to get your money back (even after approval) as the entire process can take up to 90 days.
- There are up to 7 different types of small business loans…it may take some time to choose the one that’s right for you.
You may initially think that a small business loan is your best option, but these requirements can be difficult or take longer than you want to complete.
Is the personal loan application process better?
The short answer is that a consumer loan company can submit an application and decide on that application within a day.
With a personal loan, you don’t have to go through many circles. Instead, it’s much easier to get a loan on time (and without the issues mentioned above).
The main advantages of personal loans, especially when compared to small business loans, are:
- Streamlined application process that can be started in minutes by phone or online
- Reduced documentation requirements
- Same-day decisions (most, but not always)
- Less complex issues as key decisions are payment schedule and loan amount.
With its simplicity and convenience, you can learn more about using personal loans for your business.
Make a final decision
Now that you understand that personal loans are possible for your business, you need to decide if this is the right financial solution for your business.
When comparing this option to a small business loan, ask and answer the following questions:
- How do you plan to use the funds?
- Do you need money in the near future or can you wait?
- How much money do you need now?
- Have you gathered all the information you need to apply?
- Which types of loans are more profitable in the long run?
Answering these questions and consulting with your lender for any type of loan will help you make an informed and confident decision.