When you start thinking about opening a business, you are likely to consider all the different ways to finance that business. You want to get money as easily as possible and you also want to be sure you get the amount that you need. So what exactly is the best way to finance a business? A personal loan! Here is why you should use a personal loan to fund your business.
A Faster Loan Option
When thinking about getting a loan for a business, you may automatically think of getting a business loan. Business loans can be good but they also take a lot of time to get. You will need to meet with a bank lender, show your business plan, answer lots of questions regarding the business and then wait days or even weeks to find out about your approval status. You may not have that kind of time! With a personal loan, you can apply and get approved quite quickly and with very little paperwork. You could even opt for instant cash loans which will get you money in the same day- perfect for those once in a lifetime business opportunities that you just can’t pass up! So save some time and get your business up and running sooner by using a personal loan.
In addition to being able to get money quickly, a personal loan offers you complete spending flexibility. Most personal loans will have no restrictions or requirements that delegate how you spend the money. This is not the case with traditional business loans which require you to only use the money on direct business expenses and also provide proof of every expense to your lender. How exhausting is that! With a personal loan, you could rent an office space, buy equipment or just buy yourself lunch- no one needs to know how the money is spent! You are free to make your entrepreneurial decisions on how to spend the money.
A personal loan will be approved based on your own credit history. If you have a strong financial history, this is a great selling point. Those will excellent credit scores should easily be able to get a loan right away. Even if your credit score is on the lower side, many small instant cash loans don’t even require a credit check in order to be approved! If you try to take out a loan using your new business name and number, it may be harder to get a loan since your business has no financial history. Use your personal information and you will have a much easier time getting the cash you need.
Skip the Family
Many people instantly think to ask their family and friends for money to help fund their business however, this is not always a great idea. Sure, people will be willing to help you on your entrepreneurial journey but it may complicate your personal relationships later on down the road. Keep your family and your money separate and just opt for the personal loan- it is a much cleaner way to go! Wondered if a corporation is the best structure for a new business? TRUiC is one of the best guides to explain the process.