My Post

Whenever possible, you should avoid co-mingling personal debt with business debt. It can become a nightmare, especially for your CPA at tax time.

 

A personal loan should be your last resort option, meaning you have exhausted all other options, and you have no other choice.

 

While personal loans can offer decent terms, they often require a personal guarantee and may even put your assets like your car, boat, or real estate at risk if you default. Personal loans and business loans offer both benefits and drawbacks, so explore all your options and research alternatives before borrowing funds for your business. Personal loans are closed-ended loans that have a monthly fixed payment and are amortized over a set period of months or years. 

 

Using your personal credit and your personal assets could lead to financial challenges in both your personal and your business. Remember, a personal loan, unlike a business loan, are approved on an individual basis rather than the financial strength of your business. Taking out a personal loan to pay for business expenses means that you are putting your credit at risk if you are unable to pay it back.  Despite these risks, this is sometimes a good route for a business owner to explore until your business is in the position to stand on its own.  If it makes sense for you, it is a great alternative option to explore. 

 

There are many business funding options available to you as business owner, we offer many ways for you to access funding.  Before you make a final decision explore your options, contact a business credit expert at Fast Track Business Capital or schedule a free consultation.