Startup loan vs. personal loan

AnotherJoe

boo_star wrote: »

OP said in their first post that the personal loan has a lower APR.

....... and ...... ?

boo_star

AnotherJoe wrote: »

....... and ...... ?

That's why they want to get the personal loan rather than the startup one.

AnotherJoe

boo_star wrote: »

That's why they want to get the personal loan rather than the startup one.

The lower APR?
I suspect it's more they are worried if they apply for the business one and get rejected it will look dodgy applying for a personal one.

boo_star

AnotherJoe wrote: »

The lower APR?
I suspect it's more they are worried if they apply for the business one and get rejected it will look dodgy applying for a personal one.

It doesn't read like that to me but I suppose we'll find out in due course

JReacher1

I’m not too sure how enforceable those terms are.

For example if you say borrow £7k and then while you Are in debt spend £20 on a bet is that not using some of the loan to gamble with?

gyorfitam

The lower APR?
I suspect it's more they are worried if they apply for the business one and get rejected it will look dodgy applying for a personal one.

It's the combination of both. I mean it seems quite funny to work harder for the business loan with a higher APR rather than just get the easily accessible lower APR personal loan. And as you guys said, after a rejection I will be in a worse position.

see your point G and it's highly unlikely there would be any legal implications, but could you not split the loan? If you need say £3k for the camera equip, then borrow that. And get the tax relief.

I
Yes, we could split it, we are just trying to see the possibilities. And with the personal loan, the best APR starts at £7500. That would be enough for quite few things. My other half is craving for a proper laptop as well ��.

boo_star

gyorfitam wrote: »

It's the combination of both. I mean it seems quite funny to work harder for the business loan with a higher APR rather than just get the easily accessible lower APR personal loan. And as you guys said, after a rejection I will be in a worse position.
I
Yes, we could split it, we are just trying to see the possibilities. And with the personal loan, the best APR starts at £7500. That would be enough for quite few things. My other half is craving for a proper laptop as well ��.

It's not that weird, it's just that startup loans are a higher risk and the APR is higher as a result.

If you lie on the forms you're committing fraud. You may get away with it but it is a criminal offence.

This isn't opinion, it's a matter of fact.

gyorfitam

That's another question how would you say I'm using something for business purposes. The country I'm coming from it's much more clear: you only have a chance to use something as a business expense if you bought it for your company (same thing for sole traders). If you get something in a personal way, that doesn't count, no matter what. And don't get me wrong, I'm still saying the system is much better here and much more startup-friendly. For example there you have to pay tax straight from the beginning even if you don't have any income. But this is the same place where around 90% of the private companies are paying their employees mostly in cash (and I think you know why :rotfl:).

boo_star

gyorfitam wrote: »

That's another question how would you say I'm using something for business purposes. The country I'm coming from it's much more clear: you only have a chance to use something as a business expense if you bought it for your company (same thing for sole traders). If you get something in a personal way, that doesn't count, no matter what. And don't get me wrong, I'm still saying the system is much better here and much more startup-friendly. For example there you have to pay tax straight from the beginning even if you don't have any income. But this is the same place where around 90% of the private companies are paying their employees mostly in cash (and I think you know why :rotfl:).

You're buying goods to use in the course of your business. It's as clear cut as it could possibly get.