Small business loan or personal loan?

[mrgwvr]

HI,

I've grown up in the state of Florida and now live in New Jersey. Since I moved around 8 years ago I have been growing my skills as a cake designer and have been toying with the idea of starting up my own bakery business. I already cater for family and friends so have experience working with "customers" and being paid for my work but its really something I would like to pursue full time since it is where my passion lies.
I'd love to work out of a small shop along my local street so would want to buy some property. My question here is do I need to take out a small business loan or will a personal loan cover me since the business is not yet established? My current account is with Barclays if that impacts anything?

Please help me out!

 

[Taxing Matters]

You can use whatever loan best meets your needs. So long as you are honest with the lender when applying for the loan you should be fine. Whether it is called a "personal" or "commercial" loan doesn't really make much difference. It is the terms of the loan you get that matter, and you'll want to look closely at what those are and make sure you understand how the loan will work and what it will cost you before agreeing to the loan.

 

[debora32]

A sudden spike in sales might have created a need for some additional cash flow, or maybe that influx has created the need to expand. While a tailored business loan would seem to be the obvious choice, many smaller businesses still choose personal loans, favoring their simplicity and easy applications.

 

[JamesMolina]

Agree with you Taxing Matters.

 

[quincy]

Agree with you Taxing Matters.

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