Company loan vs personal bank loan: which can be better for the startup?

Company loan vs personal bank loan: which can be better for the startup?

By Kate Anderson

Updated: 7th 2020 october

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In case your company is simply beginning, it may sometimes be tough to secure funding from traditional lenders.

Loans typically come with demands that, as being a startup, your company might neglect to qualify for. However, some loans that are personal restrictions on whether or not you need to use them for business purposes. It can be difficult to understand which option to opt for.

Don’t stress. We’re here to help you through everything you need to know that will help you decide whether a small business loan or perhaps a loan that is personal suitable for your start-up.

Business loan

The biggest problem regarding start-ups and business loans is the eligibility criteria. Business loans, as with any loans, are given considering affordability and a credit check. The process for a start-up company is that they’ve no proven background with no credit rating as yet. Which makes accessing funding that bit harder.

Nonetheless, you can find loans designed for startups. For most of those it is important to offer a company plan and an income forecast included in the application process. Continue reading “Company loan vs personal bank loan: which can be better for the startup?”