When you need some extra cash flow for your business, one of the decisions you’ll need to make is whether to pursue a personal loan or look into professional loans instead. There are advantages of each to consider when making this decision. Personal loans are generally easier to obtain and have a less complicated application process, which means you can often get the funds more quickly, and you may not need any collateral depending on your personal credit score and history. The drawback of personal loans is that you generally won’t be able to borrow as much as you would with professional loans, and you might also find the terms less favourable, such as a higher interest rate and shorter repayment period.
It is for these reasons that it is typically advised to consider a personal loan instead of professional loans only if you have been in business a short time and you only need a small amount of funds. If your business has shown sufficient income over two years or more with good revenues that cover not only your monthly expenses but also the projected loan payment, then professional loans make more sense. Also, keep in mind that personal loan lenders can and do put restrictions on how you can use the funds, and some may not allow you to use it for business purposes.
If you would like to know more about professional loans and get solid, straight-forward advice from a professional, give us a call at the BRM Lending Team. We will be happy to meet with you to go over your financial goals for your business and provide you with options that make the most sense for your situation. We can give you access to a wide range of financial institutions, so that the most favourable rate and terms can be achieved. Call today to learn more about putting the pieces together for a sound financial future for your business.