Get a Personal Loan for Your Business Fast

As consumers, most people are familiar with personal loans. You may have taken out a personal loan to consolidate debt, pay for a wedding or vacation, or to cover medical expenses. But as a small business owner, have you considered taking out a personal loan for your business? Personal loans offer advantages for certain business owners, but may not be right for everyone. Understanding your funding needs and knowing your personal and business credit ratings are essential in determining if using a personal loan for your business would be the right move.

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LendRev can provide access to capital fast because we offer a direct path to the lending marketplace, empowering businesses like never before. Just complete one free application and LendRev gets to work, searching our network of lending partners where they compete for your business.

Apply Today. Get Funded Tomorrow.

Fill Out a Free Online Application

Step 1

Fill out a single, free online application*

Speak With a Funding Coordinator

Step 2

Speak with your personal funding coordinator

Receive Same-day Approval

Step 3

Receive same-day approval with proper documentation

Receive Funding in 24 Hours

Step 4

Receive the funding you need in as little as 24 hours

What are the advantages of using a personal loan to cover business expenses?

This type of financing provides a range of advantages over traditional loans.

  • Personal loans are less expensive than business loans.

    A personal loan typically has a lower interest rate than a business loan, particularly if it’s secured with collateral.
  • It’s quicker and easier to get a personal loan.

    As long as you have a strong personal credit score, a personal loan will be quicker and easier to obtain than a business loan. A personal loan requires far less documentation, typically just your pay stubs, tax return and credit score. For a business loan, a lender may require several years’ worth of financial statements, tax returns, credit report, business plans, and even contracts with your vendors, suppliers, and customers. Additionally, funds from a personal loan can be delivered within days of approval. A business loan may require several weeks.
  • Approval for a personal loan doesn’t take your company’s credit score into consideration.

    Because personal loans are approved based on your personal credit score, they can be an excellent option for start-ups and younger companies that have yet to establish their credit history. They can also be a great option for more established businesses with bad credit.
  • Unlike business loans, personal loans aren’t earmarked for a specific purchase.

    If the growth and success of your business requires a unique or unusual purchase, or you do business in an industry viewed as undesirable or high-risk by traditional lenders, a personal loan will enable you to spend the funds as you see fit.
  • Personal loans don’t require follow-up from the lender.

    Unlike a personal loan, a business loan may require an annual business review to make sure your company is financially healthy enough to continue meeting its obligation to the lender. With a personal loan, as long as you make your payments on time, it would be highly unlikely that your lender would require any further proof of your creditworthiness.

What are the disadvantages of personal loans for business?

  • Personal loans require a good credit score.

    If your personal credit score is below 600, taking out a personal loan to fund your business might not be the best option. Although it’s possible to be approved with a lower credit score, especially if you can provide collateral, the higher interest you’d be required to pay would make this type of financing less desirable.
  • Some business owners prefer to keep their business and personal finances separate.

    When using a personal loan to fund your business, it takes diligent record keeping to keep your personal and business books in order, and for some business owners, that’s a complication they’d rather avoid. If you do choose to use a personal loan for your business, be sure to keep accurate records and start establishing separate credit for your business as soon as possible.
  • Maximum amounts for personal loans typically top out at $50,000.

    This type of financing works best for companies seeking smaller loan amounts. If you need a larger influx of working capital to purchase real estate, procure heavy equipment, or expand into a new market, a personal loan may not be able to deliver enough funding.
  • Personal loans may come with closing costs – and interest on those costs.

    When considering taking out a personal loan to access capital for your business, keep in mind that you may have to pay closing costs. Closing costs are fees charged by the lending institution in addition to the interest rate. The amount of the closing costs is deducted from the funds you receive, yet you are still obligated to pay interest on the full loan amount. For instance, if you take out a personal loan for $10,000 and the closing costs are $500, you’d receive $9,500 – but you’d still be charged interest on the full $10,000.

About Personal Loans for Business

Personal Loans for Business at a Glance


Personal Loan for Business Amount

Amount
Maximum amounts $35,000-$50,000

Personal Loan for Business Repayment Term

Repayment Term
3-5 Years

Personal Loan for Business Interest Rate

Interest Rate
5.99%-36%

Personal Loan for Business Credit Score

Credit Score
600+ for most lenders

Personal Loan for Business Payment Frequency

Payment Frequency
Regular, monthly payments

Personal Loan for Business Funding Received

Funding Received
As little as 4 days

Personal Loan for Business versus Traditional Business Loans


Personal Loan Business Loan
With a good credit score, you may be able to secure a personal loan without collateral. Business loans require collateral, regardless of your company’s credit score.
Personal loans rely on your personal credit score for approval. Business loans rely on your company’s credit score.
Documentation required for personal loans typically includes your pay stubs, tax returns and credit reports. In addition to your business’s credit history and tax returns, lenders will also want to see several years of financial statements, and possibly business plans and contracts with vendors and customers.
Funds from approved personal loans may be available in a matter of days. It can take several weeks, or even months, to receive funding.
Personal loans don’t require follow-up from the lender, as long as payments are made according to the loan’s terms. Lenders may require annual reevaluations of your company’s financials.
Interest rates are typically lower and terms longer, depending on your personal credit score and availability of collateral. Business loans have higher interest rates and shorter terms, depending on the collateral pledged and the maturity of the business.
Personal loans don’t typically require a guarantor who will assume responsibility for the debt if you default. Business loans usually require owners to sign as guarantors, putting both their personal and business assets at risk in case of default.

Common Questions About Personal Loan for Business


What is a personal loan?

Simply put, a personal loan is funding provided to an individual by a lending institution at a cost (i.e. interest). Personal loans are also referred to as consumer loans.
Personal loans may be secured or unsecured, meaning that you may/may not be asked to put up collateral to secure the loan. Secured loans have the benefit of lower interest rates because the risk to the lender is reduced. If you fail to pay, the lender can take possession of your pledged assets to cover their loss.
If you’re willing to pay a higher interest rate, an unsecured personal loan does not require collateral to secure the loan. Although you won’t forfeit any assets in the event of a default on an unsecured personal loan, defaulting on either type of loan will impact your personal credit score, making it more difficult for you to be approved for credit cards, car loans, apartment rentals and home mortgages.
As with any financial product, it’s extremely important to research your options. Be sure that you fully understand the terms of your loan and the repercussions of default. If you have any reservations or questions, consult a licensed legal and/or financial professional.

How does a personal loan work?

To apply for a personal loan, you would submit your application along with documentation of your income and debt, including pay stubs and tax records. The lending institution will evaluate that information alongside your credit score. If approved, you will be provided the agreed upon amount, minus closing costs. You then make regular, monthly payments on the principle and interest, according to the terms of your loan, until the balance of the loan is paid off.

How can Lendrev help you get a personal loan?

LendRev can help you get a personal loan to use for your business by connecting you with our extensive network of vetted lenders – all by submitting a single, free application. You’ll be able to speak one-on-one with one of our personal funding coordinators to go over your offers, have your questions answered, and receive assistance with completing the funding process.

Is a personal loan hard to get?

As long as you have a personal credit score of 600 or above, a personal loan is easier to get than a traditional business loan, and it requires far less documentation. However, if your personal credit score is below the 600 mark, alternative lending products would typically be easier and faster to obtain, although they may come with a higher price tag.

When is it the right choice to take out a personal loan for business funding?

Using a personal loan to cover business expenses works best for owners who have a personal credit score of 600 or more.
Personal loans are also a good option for start-ups and younger companies that have yet to establish their credit history. Likewise, relying on the owner’s personal score for approval is a good move for more mature companies with rocky credit histories.
Because personal loans have lower maximum amounts available, they might not be the right choice for your company if you need a large influx of capital to cover major expenses.

* In order to secure funding, LendRev requires at least three months in business with a minimum of $10,000 in monthly revenue.

† With the appropriate information and documentation available, it’s possible to have your application approved in as little as one hour.

‡ Many of our term loan and merchant cash advance providers can be very fast, providing funds in as little as 24 hours. SBA-backed lenders may take two weeks or more because Small Business Administration loans require significantly more documentation.