Hey! You have cash now on your bank account thanks to that personal loan you took. Now you can start your own business, take care of your payroll or even get the supplies you need for the company, right? Wrong.
Business and personal loans are not the same, even though you’ll get them and have free range to use them. A personal loan is meant for… well, personal things like better education or to improve your home. And they have collateral specific to you as a person, the stuff you own. If you are planning a small business, the right way to go is getting into small business loans. A great option for loans is loanscanada.ca.
This will help you achieve your professional goals without jeopardising your personal life. Let’s see what you should consider before applying for a personal loan.
- Investing it.
Sounds odd but you should never invest money you borrowed and hope for the best. Investing in working projects, the stock market or other financial vehicles should be a very thought-out decision and it should be with savings. That way, if you lose it, you won’t be paying back for months or years.
- Starting your own business.
Small business loans have specific structures, benefits, payment plans and collaterals to help you achieve that goal. Don’t go mixing them up and take a hard look at what you want the money for.
- Pay other debts.
This is quite a common practice because it can help you consolidate your different debts into a big one. The problem? You might end up paying a lot more interests if you are not careful with the rates. Maybe you had three credit cards with low and medium rates but now you’ll have a higher rate and it’ll be a percentage of your whole debt. See how you might be making a mistake?
Speak Your Mind