Personal Loans for Business

Last updated 01 Mar 2019
A personal loan is exactly what it sounds like, a loan you as the owner of the business take personally. This is one of the most straightforward ways to fund a start-up or very small company lacking operating history.

Collateral would be your personal assets, often your home, and you are personally liable to pay off the loan. One of the advantages of taking a personal loan to fund your business is that if your credit history is strong, this may be a less expensive way to fund your business.
Key Features
Loan Size
$5k to $50k
Loan Term
1 to 5 years
Interest rate
8% - 20%
Approval Speed
Medium
Common Uses of Personal Loans for Business
A personal loan is often the best option for funding a start-up or small business without sizeable operating history.
If your business is struggling and you believe a cash infusion would help turn things around, a personal loan for business may also be a cheaper method of funding.
Keep in Mind
Be aware that a personal loan will mean that you are personally liable to repay the loan should your business fail.
The amount you are able to borrow as well as the interest rate charged will depend on your personal credit rating.
The cost of this loan can also be minimized if you have personal property or other assets to pledge as collateral.
Who Qualifies for a Personal Loan for Business?
If you apply for a personal loan for your business, lenders will focus solely on your personal characteristics such as your credit score, your income and what assets you own that you can post as collateral.
Lenders will not take your business into consideration so you do not need to prepare financial statements etc related to your business.
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