We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Personal Loans used for business info needed please.
Comments
-
What laws do you want exactly? The purpose of the loan is required at application. If your purpose is business it will be rejected. With some lenders, mortgage arrears will be rejected as it doesn't meet the criteria.
Why not apply for a business loan?I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
If you can't be the best -
Just be better than you were yesterday.0 -
Can someone send me the laws in relation to using person loans for business purposes please?
Yes. Quite simply if you're asked the purpose of the loan and you say it is for anything other than business use then you're committing proper go to prison fraud.
Other than that there is nothing stopping you applying for a personal loan and stating it is for say starting up a business but to apply for one and say for example it is for a car instead is making a fraudulent statement.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
I am asking the question as I am wondering about the legality of start up business loans provided for by Government backed loans but they are personal loans. I didn't want to say the company name.
I remembered reading about laws relating to not being able to use personal loans for business purposes and vis vera but can not remember the exact details so I am asking.0 -
There is no law that says you can't use a personal loan for business purposes if the lender is happy to lend on that basis. The only issue would be if you lied on the application and made out that the loan was for non-business use when it wasn't.0
-
I am asking the question as I am wondering about the legality of start up business loans provided for by Government backed loans but they are personal loans. I didn't want to say the company name.
I remembered reading about laws relating to not being able to use personal loans for business purposes and vis vera but can not remember the exact details so I am asking.
Ah right. Yes they are unsecured personal loans specifically designed for starting up a business in a scheme brought out by the government and they're perfectly legitimate and in addition to just getting the money you also get free business advice too. Most if not all major banks offer them. More here:
https://www.gov.uk/apply-start-up-loanThis is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards