Small Business Loans VS Personal Loans: Key Differences

If you are an entrepreneur about to launch a business, acquiring adequate funds can be a significant roadblock in getting your project off the ground. Even if you have an excellent idea, failing to come up with enough funds, can harshly halt all your entrepreneurial dreams. In such a situation, opting for an instant personal loan can get you surplus funds. A personal loan is an unsecured loan that can meet a host of needs, making it apt to finance your start-up.

Sometimes when you are trying to start a business from scratch, a traditional business loan might not be a viable option. Why? Because, when you opt for a business loan, lenders generally ask for annual revenue, business credit score, etc. If you have an established business, then providing these details is not a problem. However, if you are trying to fund your brand-new start-up, then showing proof of profit might become an issue. A personal loan, on the other hand, depends on your credit history, income, etc. If you have a strong credit report, and a steady income, then you can easily get a personal loan.

Given below are ways in which you can use a personal loan to fund your start-up.

Inventory and Supplies

Inventory and supplies are a must for the efficient working of your start-up. With the help of surplus funds from the personal loan, you can timely pay for supplies and inventory required to start your business as well as maintain it. 

Marketing and Advertising

Marketing and advertising allow you to get your business’ name out to the public. Whether you want to advertise your business on social media or promote through flyers and newspaper ads, you will need money to fund your campaigns. A personal loan can provide you to the funds to promote your business. With a personal loan, you can also hire an outside marketing company to help kick off this process.

Equipment Purchase

Your start-up needs equipment before it can open its doors and offer services to customers. You can use funds from the personal loanto purchase equipment. In addition to this, you can use the funds to buy furniture for your office. You can also use the loan amount to make quick deliveries to customers if required. Personal loan can also be used to obtain an efficient HVAC system or other long-term equipment needed for production.

Working Capital

Businesses need working capital to cover day-to-day expenses, and a personal loan is the best way to fund your operational costs. Additionally, you can also use the personal loan amount to cover expenses related to hiring and training your employees. A personal loan can also be used to cover insurance and permit costs.

When looking for an instant personal loan for your start-up, choose Tata Capital. We offer personal loan for self-employed and salaried-individuals at attractive and affordable interest rates. For added convenience, we also provide a personal loan EMI calculator for easy calculation of EMIs.

To apply for personal loan, visit our website, go through the documents required, check your personal loan eligibility, and apply for personal loan. You can appeal for a personal loan online with us, or you can visit us at your nearest Tata Capital branch.

So, what are you waiting for? Reach out to us for a personal loan online or offline today!