Check your eligibility with a range of lenders in minutes
- Apply online in as little as 3 minutes
- Check your eligibility for government backed schemes & other finance
- Simple, safe and free with no effect on your credit rating
Starting a business is no small feat. You’ve probably already done the planning and the paperwork. But how do you go about actually getting your products or services in front of the masses?
To be eligible for a business loan, you’re typically required to be in business for a minimum of a year, sometimes two years. Between this requirement and minimum annual revenue eligibility, it can feel impossible to get funding. However, there are loans that are specifically for startup funding, so if you’re starting out, it’s worth comparing providers and checking eligibility.
You might have been considering taking out a personal loan. Because personal loans are made to you as an individual, the state of your business isn’t considered. However, many lenders state categorically that you can’t use their personal loans to fund a business.
Generally, no. There are a few lenders who will allow a personal loan to be used for funding a business, but many don’t allow it. Major banks which offer both personal and business loans, for example, will prefer you to use personal loans for personal use, and vice versa.
In addition, if you find a personal loan that can be used for business purposes, consider the conditions the loan could come with. The biggest one is that your name — not your business name — is attached to the loan. Any missteps could become personal liabilities.
Personal loans also rely on your credit as an individual and play by rules that slightly differ from business requirements. You may have the option of a secured personal loan, but it’s less likely that you’ll need to provide collateral with a personal loan than with a business loan.
You should also be honest and upfront with your lender about the purpose of the loan. Some lenders may order you to pay back the loan immediately if they discover you misled them.
To get the cheapest personal loans, you’ll generally need to have a good credit score. Applying is fairly easy through the lender’s website.
When applying for a personal loan, have your personal information and financial details to hand. Depending on the lender, your application could take as little as five minutes to complete.
You can improve your credit by doing things like paying reducing your debts and keeping up with your payments.
But not everyone has time to raise their credit score. You could also apply for a bad credit personal loan. Bad credit personal loans should be weighed carefully, as they tend to carry higher interest rates and costs. They also may not be approved for business purposes.
With enough documentation, you can treat interest payments on your loan as deductible business expenses when it comes to tax on your profits. Getting this deduction requires keeping records of what you spent the money on and how these payments relate to your business.
When borrowing money, you need to be honest about what you’re using it for, or your lender could demand you repay it all immediately. Most personal loans can’t be used for a business, but there’s a wide range of options within business loans to help you, whether you’re a startup or more established. Whatever you opt for, comparing loans is critical, and always check you’re eligible before you apply.
Find out how life insurance works and what policy is right for you.
While it may look like additional admin work, opening a separate business account is actually likely to make your work life easier and more organised. Here are the pros and cons.
If you’re a small business owner, here’s what you need to know about opening a business bank account.
New research indicates that not everyone may have been using their card less throughout lockdown. The study found that over 2 in 5 credit card holders (43%) used, and are continuing to use, their credit cards more than they did before lockdown started in March.
Second charge mortgages can allow borrowers to finance big projects, like home improvements. However they come with risk, so it’s crucial to read-up, do your sums and work out what’s right for your circumstances.
0% purchase credit cards can help cover the cost of large purchases or expenses, and are often cheaper than a personal loan.
If you’re considering applying for a £200,000 personal loan, check out this guide which explains how to compare lenders and find the best deal.
If you’re considering applying for a £150,000 personal loan, check out this guide which explains how to compare lenders and find the best deal.
If you’re considering applying for a £100,000 personal loan, check out this guide which explains how to compare lenders and find the best deal.
Small World offers competitive rates, instant transfers and multiple payment options to send money to more than 190 countries.
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.