{"id":5546,"date":"2019-03-18T16:04:33","date_gmt":"2019-03-18T14:04:33","guid":{"rendered":"https:\/\/www.lending-express.com\/blog\/?p=5546"},"modified":"2019-09-18T11:52:27","modified_gmt":"2019-09-18T08:52:27","slug":"business-loan-vs-personal-loan","status":"publish","type":"post","link":"https:\/\/www.become.co\/blog\/business-loan-vs-personal-loan\/","title":{"rendered":"Business Loan vs Personal Loan: What\u2019s the Difference, and Which Should You Use?"},"content":{"rendered":"\n<p><span style=\"font-weight: 400;\">Business loan vs personal loan &#8211; it\u2019s one of the most fundamental hurdles that small business owners need to overcome in the early stages of getting established. The question becomes particularly relevant for new business owners who naturally have fewer options when it comes to financing.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Feeling personally invested in the company that you yourself founded is perfectly normal, but sentimental feelings shouldn\u2019t be the deciding factor when it comes to choosing between a personal loan or business loan. Of course, before you can make a decision there are pieces of info that you\u2019ll need to cover in order to make the right choice.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">What are the differences between business loans and personal loans?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">What are the benefits of business loans?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Is there a difference between business loan interest rates vs personal loan interest rates?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">How can you use a personal loan for business?<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s only the tip of the iceberg &#8211; you\u2019ll definitely want to find out what lies beneath the surface&#8230;<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Discover all there is to know about the \u2018business loan vs personal loan\u2019 debate below.<\/span><\/p>\n<p>&nbsp;<\/p>\n<blockquote>\n<p>Of course, the type of business will affect the kind of&nbsp;<a href=\"https:\/\/www.become.co\/loans-by-industry\/\" target=\"_blank\" rel=\"noopener noreferrer\">industry loans<\/a>&nbsp;a business needs,&nbsp;as well as the specific circumstances that business finds itself in. Be sure to weigh your options carefully in order to choose the right funding solution for your business.<\/p>\n<\/blockquote>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Personal vs business loan &#8211; what\u2019s the difference?<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re new to the field of business financing, you may not know what the difference is when comparing a business loan vs personal loan. The answer might be simpler than you expected. In plain English, a personal loan is used for your personal needs (or wants), and a business loan is for business uses.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">But that\u2019s truly an oversimplified look at the two loan types. What if you personally want to start a business and can\u2019t qualify for a business loan? Or what if your business is a personal hobby that you\u2019ve managed to monetize? The lines aren\u2019t always so clear-cut.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">What\u2019s also worth considering is the variety of personal and business loan options, what they are typically used for, what their qualifications and terms are, and so on. Before delving into the differences, what are some of the similarities between personal loans and business loans?<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Both personal loans and business loans:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Can come in the form of a <\/span><a href=\"https:\/\/www.become.co\/business-line-of-credit\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">line of credit<\/span><\/a><span style=\"font-weight: 400;\"> or as a lump sum<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Can be obtained from a bank, online lender, or credit union<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><span style=\"font-weight: 400;\">Personal loan defined<\/span><\/h3>\n<p><b>Personal loan &#8211; <\/b><span style=\"font-weight: 400;\">also referred to as consumer loans, personal loans are a form of financing that is granted for the borrower\u2019s personal use; personal loans can be either secured or unsecured.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">If the loan is secured, the loan provider will require the amount to be guaranteed by your personal assets or by a co-signer who acts as a guarantor on your behalf. In other words, if it\u2019s a secured loan then if you fail to make payments and default on the loan, the lending institution will be able to seize your assets or approach your guarantor and demand the outstanding balance from them.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">If the loan is unsecured, it is also referred to as a signature loan. With unsecured loans, the amount being borrowed is approved based on the lending institution\u2019s assessment of the borrower\u2019s ability to repay.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Broadly speaking, unsecured loans are a bigger risk for the lender than secured loans. Whether it\u2019s a secured or an unsecured loan, repayment is normally made over a specified period of time (and in specified amounts) agreed upon in advance by the borrower and the lender.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span style=\"font-weight: 400;\">Business loan defined<\/span><\/h3>\n<p><b>Business loan &#8211; <\/b><span style=\"font-weight: 400;\">unlike personal loans which are approved for the personal use of the borrower, business loans are provided for specific reasons (more on that below). Getting approved for a business loan will generally require taking a serious and detailed look over your company\u2019s financial history.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">What are the benefits of business loans? Where personal loans are split into secured and unsecured categories, business loans have a bit more variety to them because they are specialized for certain purposes. Lending institutions will want to provide a financing solution that fits the loan applicant\u2019s financial need in order to avoid risky lending practices.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">This means borrowers are a lot less likely to get roped into taking out a loan they can\u2019t afford to pay back.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>What are the different types of <\/b><a href=\"https:\/\/www.become.co\/business-loans\/\" target=\"_blank\" rel=\"noopener noreferrer\"><b>business loans<\/b><\/a><b>?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Startup business loans<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">SBA loans<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Equipment\/vehicle financing<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Line of credit<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Commercial business loan<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Merchant cash advance<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Invoice factoring<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Asset-based loan<\/span><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.become.co\/unsecured-business-loans\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Unsecured business loan<\/span><\/a><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<blockquote>\n<p><a href=\"https:\/\/www.become.co\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Become<\/span><\/a><span style=\"font-weight: 400;\"> makes it easier to choose for the wide variety of business loan types, and loan providers. Advanced algorithms work to match your business with the funding option that best meets your requirements and financial profile.<\/span><\/p>\n<\/blockquote>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">What is a personal loan used for?<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The uses for personal loans are virtually limitless, but a wise and responsible borrower will have a strong reason to borrow money.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Uses for personal loans include:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Medical expenses<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Purchasing a car<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Obtaining an education<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Buying, or repairing, a home<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Starting or funding a small business<\/span><\/li>\n<\/ul>\n<p><br><br><\/p>\n<h2><span style=\"font-weight: 400;\">What is a business loan used for?<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Since business loans tend to be larger amounts than personal loans and are riskier for lenders, they are granted by loan providers for specified purposes. In other words, before giving a sizeable amount of their money to help your business, a lender will want to feel confident that the risk of that investment is minimal.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">By obtaining an exact reason for borrowing the money, the lender\u2019s confidence in your business\u2019s ability to repay the loan increases.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Uses for business loans include:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Purchasing new or used equipment<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Stocking up on inventory<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Paying employees\u2019 salaries<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Covering rent or utilities<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Opening a new location<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Repairs or renovations<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">These are just a few uses &#8211; ultimately, a business loan is used to for financing a business. It should go without saying that \u2018financing a business\u2019 can mean a lot of things.<\/span><\/p>\n<p><br><img decoding=\"async\" class=\" wp-image-5550 aligncenter\" src=\"https:\/\/www.become.co\/blog\/wp-content\/uploads\/2019\/03\/iStock-903735920-1-300x200.jpg\" alt=\"Personal loan for business startup\" width=\"749\" height=\"499\" srcset=\"https:\/\/www.become.co\/blog\/wp-content\/uploads\/2019\/03\/iStock-903735920-1-300x200.jpg 300w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2019\/03\/iStock-903735920-1-768x512.jpg 768w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2019\/03\/iStock-903735920-1.jpg 1024w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2019\/03\/iStock-903735920-1-405x270.jpg 405w\" sizes=\"(max-width: 749px) 100vw, 749px\" \/><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Can you use a personal loan for a business or startup?<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">In short, yes, you can use a personal loan for a startup business. But just because you can doesn\u2019t mean you necessarily should.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">If you haven\u2019t actually established the business yet and it\u2019s still in its early stages, it\u2019ll likely be difficult to obtain a business loan. For this singular reason, personal loans are among the most useful financing solutions for startups.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>What other reasons are there for you to take a personal loan for business purposes?<\/b><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Perhaps you only need a very small amount, say a few thousand dollars. In that case it may be worth investigating the option of taking a personal loan even if you can obtain a small loan from alternative lenders, since the interest rates are lower for personal loans.<\/span><\/p>\n<p>&nbsp;<\/p>\n<blockquote>\n<p><span style=\"font-weight: 400;\">Business loan interest rates vs personal loan interest rates can be a bit tricky to give an accurate assessment on since they range so widely depending on the loan provider, sub-type of the loan, the loan amount, your financial history, and so on. Generally speaking, personal loan interest rates can range <\/span><a href=\"https:\/\/www.merchantmaverick.com\/business-loan-vs-personal-loan\/#Business_Loan_vs_Personal_Loan_How_To_Qualify\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">4%-99%+<\/span><\/a><span style=\"font-weight: 400;\">, and business loans can range 5%-36%.<\/span><\/p>\n<\/blockquote>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Or maybe you don\u2019t feel comfortable placing your personal assets in jeopardy of being seized in the event that you default on the loan. Much of the time personal loans won\u2019t require you to put your assets up as collateral the way secured business loans do.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">But again, personal loans may still not be the best option if your goal is to finance your already-established business. Keeping your personal and business finances separate is one of the most fundamental steps in staying organized as a business owner.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">In fact, even though many personal loans don\u2019t require collateral, if you don\u2019t separate your personal and business finances then your personal assets may still be at risk if your business were to be sued.<\/span><\/p>\n<p>&nbsp;<\/p>\n<blockquote>\n<p><span style=\"font-weight: 400;\">It\u2019s crucial that you weigh the costs and benefits of all financing options available to your business, and assess them in light of your business\u2019s financial situation. There\u2019s no \u2018one-size-fits-all\u2019 answer when it comes to business financing.<\/span><\/p>\n<\/blockquote>\n<p><br><br><\/p>\n<h2><span style=\"font-weight: 400;\">Personal loan requirements<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Compared to business loans, the qualifying requirements for personal loans are very relaxed. The reason for that is personal loans are much smaller on average compared to business loans; the average personal loan amount is roughly <\/span><a href=\"https:\/\/www.finder.com\/personal-loans-statistics\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">$7,500<\/span><\/a><span style=\"font-weight: 400;\"> (the absolute maximum being <\/span><a href=\"https:\/\/www.merchantmaverick.com\/business-loan-vs-personal-loan\/#Business_Loan_vs_Personal_Loan_How_To_Qualify\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">$100,000<\/span><\/a><span style=\"font-weight: 400;\">).<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Even if you explain to the loan provider that your intentions are to put the borrowed funds towards financing your business, only your personal financial situation will be taken into consideration when determining your fitness for approval.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Qualifications for personal loans:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Have a good to excellent credit score\/history (680+ FICO)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Have a healthy <\/span><a href=\"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">debt-to-income ratio<\/span><\/a><span style=\"font-weight: 400;\"> (around 30%)<\/span><\/li>\n<\/ul>\n<p><br><br><\/p>\n<h2><span style=\"font-weight: 400;\">Business loan requirements<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Qualifying for a business loan is more complicated than qualifying for a personal loan, although your personal financial history will certainly play into the assessment.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The reason the requirements for a business loan are stricter is that the loan amounts are larger than personal loans, and so the risk is higher as well; the average business loan amount from alternative lenders is roughly <\/span><a href=\"https:\/\/www.valuepenguin.com\/average-small-business-loan-amount#alternative-lenders\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">$50,000-$80,000<\/span><\/a><span style=\"font-weight: 400;\"> (the maximum being <\/span><a href=\"https:\/\/www.sba7a.loans\/sba-7a-loans-small-business-blog\/what-is-the-sba-7a-loan-maximum-amount\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">$5 million<\/span><\/a><span style=\"font-weight: 400;\"> through the SBA).<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Since different lenders have different qualifications, it\u2019s always advisable that you do your due diligence before making any decisions, particularly when it comes to your finances. But here are a few general qualifications for business loans.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Qualifications for business loans:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Have a properly detailed outline of how you intend on using the borrowed funds<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Be in business for at least 3 months earning a minimum of $10,000 in monthly revenue <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">OR at least 6 months in business earning a minimum of $2,000 in monthly revenue<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Have a good credit score (640+ FICO)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Provide tax returns &amp; bank statements<\/span><\/li>\n<\/ul>\n<p><br><br><\/p>\n<h2><span style=\"font-weight: 400;\">Personal vs business loan &#8211; which is right for my business?<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">With all of the factors that need to be taken into consideration, making the decision in the \u2018business loan vs personal loan\u2019 standoff can still be difficult to do. As far as business loan interest rates vs personal loan interest rates go, the latter tend to offer a better deal for borrowers. And, the qualifications are clearly much easier when it comes to personal loans.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>To simplify the process, here\u2019s a shorthand look at how to choose between personal loans and business loans when it comes to financing your business:<\/b><\/p>\n<p>&nbsp;<\/p>\n<p><b>When to take a personal loan:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">When you have a high credit score<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">If you make a good salary<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">If you don\u2019t mind putting your personal credit history in jeopardy<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">If you\u2019re either not in business yet, or have only been in business for a very short time<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><b>When to take a business loan:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">When your credit score is rated as fair<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">If your business is your primary source of income<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">If you don\u2019t want to risk your personal credit getting damaged<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">If you\u2019ve been in business long enough that you can comfortably offer business assets as collateral<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">If you\u2019re exploring financing options other than term loans (i.e. line of credit, merchant cash advance)<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Settling the score<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">We\u2019ve taken a full three-sixty of the business loan vs personal loan question, and we\u2019ve answered a few important questions for you.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">What needs to be considered when comparing business loans vs personal loans?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Can you use a personal loan for business startup?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">How can you use a personal loan for business?<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The short answer is, if your company has been around long enough, you should check to see if you can qualify for a business loan. But that is not the final word on the matter &#8211; there\u2019s no universal answer when choosing which sort of loan is right for you and your business. You\u2019ll need to compare your business\u2019s financial profile to the terms and conditions of the loan, and see if you\u2019ll be able to meet your business\u2019s funding needs that way.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Hopefully, with the information provided above, you now have a better idea of how to make a smart decision. If there are any questions that you feel were left unanswered, please feel free to comment below.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">&nbsp;<strong><a class=\"btn btn-lg btn-success\" href=\"https:\/\/www.become.co\/apply\/\" target=\"_blank\" rel=\"noopener noreferrer\">SEE IF I QUALIFY<\/a><\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Business loan vs personal loan &#8211; it\u2019s one of the most fundamental hurdles that small business owners need to overcome in the early stages of getting established. The question becomes particularly relevant for new business owners who naturally have fewer options when it comes to financing. &nbsp; Feeling personally invested in the company that you [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5549,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[13,79,1,12],"tags":[73,131,31,47,40],"class_list":["post-5546","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aus-resources","category-business-guides","category-uncategorized","category-us-resources","tag-business-loan","tag-financing","tag-loan","tag-personal-loan","tag-startup"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Business Loan vs Personal Loan: What\u2019s the Difference, and Which Should You Use? - Business Funding Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.become.co\/blog\/business-loan-vs-personal-loan\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Business Loan vs Personal Loan: What\u2019s the Difference, and Which Should You Use? - Business Funding Blog\" \/>\n<meta property=\"og:description\" content=\"Business loan vs personal loan &#8211; it\u2019s one of the most fundamental hurdles that small business owners need to overcome in the early stages of getting established. The question becomes particularly relevant for new business owners who naturally have fewer options when it comes to financing. &nbsp; Feeling personally invested in the company that you [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.become.co\/blog\/business-loan-vs-personal-loan\/\" \/>\n<meta property=\"og:site_name\" content=\"Business Funding Blog\" \/>\n<meta property=\"article:published_time\" content=\"2019-03-18T14:04:33+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-09-18T08:52:27+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/d2y0x0ts101nr7.cloudfront.net\/2019\/03\/iStock-928469742-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"683\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Become\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Become\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"11 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/business-loan-vs-personal-loan\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/business-loan-vs-personal-loan\\\/\"},\"author\":{\"name\":\"Become\",\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/#\\\/schema\\\/person\\\/813104bb9784ace7d518254945f76ccf\"},\"headline\":\"Business Loan vs Personal Loan: What\u2019s the Difference, and Which Should You Use?\",\"datePublished\":\"2019-03-18T14:04:33+00:00\",\"dateModified\":\"2019-09-18T08:52:27+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/business-loan-vs-personal-loan\\\/\"},\"wordCount\":2122,\"publisher\":{\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/business-loan-vs-personal-loan\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/d2y0x0ts101nr7.cloudfront.net\\\/2019\\\/03\\\/iStock-928469742-1.jpg\",\"keywords\":[\"business loan\",\"financing\",\"loan\",\"personal loan\",\"startup\"],\"articleSection\":{\"0\":\"AUS Resources\",\"1\":\"Business Loan Guides\",\"3\":\"US Resources\"},\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/business-loan-vs-personal-loan\\\/\",\"url\":\"https:\\\/\\\/www.become.co\\\/blog\\\/business-loan-vs-personal-loan\\\/\",\"name\":\"Business Loan vs Personal Loan: What\u2019s the Difference, and Which Should You Use? - Business Funding Blog\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/business-loan-vs-personal-loan\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/business-loan-vs-personal-loan\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/d2y0x0ts101nr7.cloudfront.net\\\/2019\\\/03\\\/iStock-928469742-1.jpg\",\"datePublished\":\"2019-03-18T14:04:33+00:00\",\"dateModified\":\"2019-09-18T08:52:27+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/business-loan-vs-personal-loan\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.become.co\\\/blog\\\/business-loan-vs-personal-loan\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/business-loan-vs-personal-loan\\\/#primaryimage\",\"url\":\"https:\\\/\\\/d2y0x0ts101nr7.cloudfront.net\\\/2019\\\/03\\\/iStock-928469742-1.jpg\",\"contentUrl\":\"https:\\\/\\\/d2y0x0ts101nr7.cloudfront.net\\\/2019\\\/03\\\/iStock-928469742-1.jpg\",\"width\":1024,\"height\":683,\"caption\":\"Personal loan for business startup\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/business-loan-vs-personal-loan\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.become.co\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Business Loan vs Personal Loan: What\u2019s the Difference, and Which Should You Use?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.become.co\\\/blog\\\/\",\"name\":\"Become - Powering Small Business Funding\",\"description\":\"Become - Powering Small Business Growth &amp; Funding\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/#organization\"},\"alternateName\":\"Become\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.become.co\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/#organization\",\"name\":\"Become\",\"url\":\"https:\\\/\\\/www.become.co\\\/blog\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.become.co\\\/blog\\\/wp-content\\\/uploads\\\/2024\\\/05\\\/become-logo.png\",\"contentUrl\":\"https:\\\/\\\/www.become.co\\\/blog\\\/wp-content\\\/uploads\\\/2024\\\/05\\\/become-logo.png\",\"width\":521,\"height\":97,\"caption\":\"Become\"},\"image\":{\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/#\\\/schema\\\/logo\\\/image\\\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/#\\\/schema\\\/person\\\/813104bb9784ace7d518254945f76ccf\",\"name\":\"Become\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/fe7f651e825010ea56157701c4621218ea2afee5a0650ba96e61ae728e20e667?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/fe7f651e825010ea56157701c4621218ea2afee5a0650ba96e61ae728e20e667?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/fe7f651e825010ea56157701c4621218ea2afee5a0650ba96e61ae728e20e667?s=96&d=mm&r=g\",\"caption\":\"Become\"},\"url\":\"https:\\\/\\\/www.become.co\\\/blog\\\/author\\\/algoseller\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Business Loan vs Personal Loan: What\u2019s the Difference, and Which Should You Use? - Business Funding Blog","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.become.co\/blog\/business-loan-vs-personal-loan\/","og_locale":"en_US","og_type":"article","og_title":"Business Loan vs Personal Loan: What\u2019s the Difference, and Which Should You Use? - Business Funding Blog","og_description":"Business loan vs personal loan &#8211; it\u2019s one of the most fundamental hurdles that small business owners need to overcome in the early stages of getting established. The question becomes particularly relevant for new business owners who naturally have fewer options when it comes to financing. &nbsp; Feeling personally invested in the company that you [&hellip;]","og_url":"https:\/\/www.become.co\/blog\/business-loan-vs-personal-loan\/","og_site_name":"Business Funding Blog","article_published_time":"2019-03-18T14:04:33+00:00","article_modified_time":"2019-09-18T08:52:27+00:00","og_image":[{"width":1024,"height":683,"url":"https:\/\/d2y0x0ts101nr7.cloudfront.net\/2019\/03\/iStock-928469742-1.jpg","type":"image\/jpeg"}],"author":"Become","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Become","Est. reading time":"11 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.become.co\/blog\/business-loan-vs-personal-loan\/#article","isPartOf":{"@id":"https:\/\/www.become.co\/blog\/business-loan-vs-personal-loan\/"},"author":{"name":"Become","@id":"https:\/\/www.become.co\/blog\/#\/schema\/person\/813104bb9784ace7d518254945f76ccf"},"headline":"Business Loan vs Personal Loan: What\u2019s the Difference, and Which Should You Use?","datePublished":"2019-03-18T14:04:33+00:00","dateModified":"2019-09-18T08:52:27+00:00","mainEntityOfPage":{"@id":"https:\/\/www.become.co\/blog\/business-loan-vs-personal-loan\/"},"wordCount":2122,"publisher":{"@id":"https:\/\/www.become.co\/blog\/#organization"},"image":{"@id":"https:\/\/www.become.co\/blog\/business-loan-vs-personal-loan\/#primaryimage"},"thumbnailUrl":"https:\/\/d2y0x0ts101nr7.cloudfront.net\/2019\/03\/iStock-928469742-1.jpg","keywords":["business loan","financing","loan","personal loan","startup"],"articleSection":{"0":"AUS Resources","1":"Business Loan Guides","3":"US Resources"},"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.become.co\/blog\/business-loan-vs-personal-loan\/","url":"https:\/\/www.become.co\/blog\/business-loan-vs-personal-loan\/","name":"Business Loan vs Personal Loan: What\u2019s the Difference, and Which Should You Use? - Business Funding Blog","isPartOf":{"@id":"https:\/\/www.become.co\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.become.co\/blog\/business-loan-vs-personal-loan\/#primaryimage"},"image":{"@id":"https:\/\/www.become.co\/blog\/business-loan-vs-personal-loan\/#primaryimage"},"thumbnailUrl":"https:\/\/d2y0x0ts101nr7.cloudfront.net\/2019\/03\/iStock-928469742-1.jpg","datePublished":"2019-03-18T14:04:33+00:00","dateModified":"2019-09-18T08:52:27+00:00","breadcrumb":{"@id":"https:\/\/www.become.co\/blog\/business-loan-vs-personal-loan\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.become.co\/blog\/business-loan-vs-personal-loan\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.become.co\/blog\/business-loan-vs-personal-loan\/#primaryimage","url":"https:\/\/d2y0x0ts101nr7.cloudfront.net\/2019\/03\/iStock-928469742-1.jpg","contentUrl":"https:\/\/d2y0x0ts101nr7.cloudfront.net\/2019\/03\/iStock-928469742-1.jpg","width":1024,"height":683,"caption":"Personal loan for business startup"},{"@type":"BreadcrumbList","@id":"https:\/\/www.become.co\/blog\/business-loan-vs-personal-loan\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.become.co\/blog\/"},{"@type":"ListItem","position":2,"name":"Business Loan vs Personal Loan: What\u2019s the Difference, and Which Should You Use?"}]},{"@type":"WebSite","@id":"https:\/\/www.become.co\/blog\/#website","url":"https:\/\/www.become.co\/blog\/","name":"Become - Powering Small Business Funding","description":"Become - Powering Small Business Growth &amp; Funding","publisher":{"@id":"https:\/\/www.become.co\/blog\/#organization"},"alternateName":"Become","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.become.co\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.become.co\/blog\/#organization","name":"Become","url":"https:\/\/www.become.co\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.become.co\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.become.co\/blog\/wp-content\/uploads\/2024\/05\/become-logo.png","contentUrl":"https:\/\/www.become.co\/blog\/wp-content\/uploads\/2024\/05\/become-logo.png","width":521,"height":97,"caption":"Become"},"image":{"@id":"https:\/\/www.become.co\/blog\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/www.become.co\/blog\/#\/schema\/person\/813104bb9784ace7d518254945f76ccf","name":"Become","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/fe7f651e825010ea56157701c4621218ea2afee5a0650ba96e61ae728e20e667?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/fe7f651e825010ea56157701c4621218ea2afee5a0650ba96e61ae728e20e667?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/fe7f651e825010ea56157701c4621218ea2afee5a0650ba96e61ae728e20e667?s=96&d=mm&r=g","caption":"Become"},"url":"https:\/\/www.become.co\/blog\/author\/algoseller\/"}]}},"_links":{"self":[{"href":"https:\/\/www.become.co\/blog\/wp-json\/wp\/v2\/posts\/5546","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.become.co\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.become.co\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.become.co\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.become.co\/blog\/wp-json\/wp\/v2\/comments?post=5546"}],"version-history":[{"count":0,"href":"https:\/\/www.become.co\/blog\/wp-json\/wp\/v2\/posts\/5546\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.become.co\/blog\/wp-json\/wp\/v2\/media\/5549"}],"wp:attachment":[{"href":"https:\/\/www.become.co\/blog\/wp-json\/wp\/v2\/media?parent=5546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.become.co\/blog\/wp-json\/wp\/v2\/categories?post=5546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.become.co\/blog\/wp-json\/wp\/v2\/tags?post=5546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}