Private business loans are available from a number of providers including banks and lenders who specifically provide loans for businesses. As with personal loans, the loan provider will lend you or your business money on the agreement that you will pay the amount back over a specified amount of time, with interest.
The amount of interest you’ll have to pay will depend on many factors including the type of business you run, how likely it is you will consistently turn a profit and, often, your personal or the business’ credit score. Interest will also be determined by how much you want to borrow and how long you plan to borrow the money for.
It is wise to shop around for the best interest rates and deals on loans for your business. However, if you look for a deal online, be sure to check all of the comparison software tools because not all of them will show the same options. You should also check that every deal you look at includes the same terms and rates as different deals will offer different things.
Start-ups often need a cash injection to help them get started and so you will not automatically be denied business loans simply because your business isn’t well-established yet. However, if your business is new, the loan provider will need to see your personal credit history and your eligibility for a business loan will depend on your personal credit score.
You will also need to show exactly what you plan to use the money for and your current plans and projections for the business.
Our team of money experts are available to talk to you and give you business loans advice if there is anything you’re unsure of. Talk to them today to make sure you’re getting the right type of loan for your business.
Did you know that if the person who takes out a business loan dies or is seriously injured, the business is often liable to pay back the entire loan in full immediately? Unfortunately, if the worst should happen and a loan needs to be paid back, this can cripple some businesses. To prevent this from happening, you can protect your business loans with business loan insurance. Ask our team about business loan insurance today to find out more or get a quote.
Mortgage Risk Warnings