SB: Personal loan for business use?

Maddie · 6 November 2004 at 6:13PM

I was wondering what the difference was between personal and business loans. I presume that business loans are more expensive since they are higher risk etc and that in personal loan T&Cs it will state that they are not for business use. But if you own your own business is they anything to stop you from getting a personal loan and then 'investing' it into your business?

I have just realised that there are probably tax inplications, but apart from that? Excuse me if I don't have much business knowledge, but I don't personnally own a business, I am asking on behalf of somebody else.

Thanks for the help
Maddie

vansboy · 6 November 2004 at 9:06PM

Plenty of people take out a personall loan & use it for their business.Plus LOTS will re-mortgage to start/invest in their business too.Nothing wrong with taking advantage of lower rates - but remember to make sure the business pays you back - KEEP PROPER RECORDS!!

& I could write millions of lines here, about how NOT to do it - personal experience - but I won't just now - you'd only fall asleep!!

VB

Maddie · 8 November 2004 at 2:47PM

Thanks Vansboy, hope I haven't brought back bad memories! :-[
Maddie

SB: Personal loan for business use?

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