The higher your personal credit score, the better the chances of being qualified for a personal loan. Potential lenders will look at the following information to determine if you qualify for the loan:
- Personal information
- Tax returns
- Bank statements
- Pay stubs or W-2
A personal loan makes sense in certain situations:
- You’ve not established a business history
- You just need a minute amount (banks don’t feel comfortable giving out small amounts in a business loan)
- You don’t have a sufficient collateral
While a business loan makes more sense for larger companies, it’s much harder for small or startup businesses to attain. So, if you can’t get a business loan, a personal loan may be what you need to get your business off the ground and running.
