Personal Loans for Business Use - $5K to $100K
Use personal credit to fund business needs when business credit isn't ready.
See if I qualifyA personal loan used for business purposes is underwritten entirely on you - your credit score, income, and existing debts - with no business revenue requirement at all. For a new business, or one whose revenue does not yet meet commercial minimums, this is often the only realistic path to capital. The trade-off is direct: the debt is yours personally, and it appears on your personal credit report.
Who qualifies
- Good personal credit, generally 660 or higher for reasonable pricing
- Verifiable personal income, from any source, not just the business
- A manageable debt-to-income ratio
- No business revenue history required
Best for
Pre-revenue businesses, small one-time needs below commercial minimums, and owners who need funds faster than a business underwriting process allows.
What to check before you sign
- It is on your personal credit. The balance affects your personal debt-to-income ratio and can limit a future mortgage or car loan.
- Check for business-use restrictions. Some personal lenders prohibit business use in their terms. Read before assuming.
- Origination fees. Frequently deducted up front, so confirm the net amount you actually receive.
- Document the business purpose. Keep clear records of how funds were used and repaid, and ask your accountant how the interest should be treated.
Frequently asked questions
Can I legally use a personal loan for business?
Generally yes, though some lenders restrict business use in their terms, so read the agreement. The practical consideration is accounting: keep the funds and repayments clearly documented so the business use is traceable, and speak to your accountant about how interest should be treated.
Does it affect my personal credit?
Yes, in full. The loan appears on your personal credit report, the balance counts against your personal debt-to-income ratio, and any missed payment damages your personal credit. Unlike most business financing, there is no separation - which can limit your ability to borrow personally later, including for a mortgage.
How much can I borrow?
Typically $5,000 to $100,000, depending on your credit profile and income. That is generally lower than what an established business can access commercially, which is why personal loans usually make sense for smaller needs or as a bridge until the business qualifies on its own.
Is a personal loan cheaper than a business loan?
For a borrower with strong credit and a business too new to qualify commercially, it often is - a well-priced personal loan can beat high-cost short-term business products. But an established business with solid revenue will usually do better with a business term loan. The comparison depends on which you actually qualify for.
What happens if the business fails?
You still owe the money personally. There is no business entity absorbing the obligation, and no protection from the business closing. This is the central risk and the main reason to borrow only what you could service from other income if the business does not perform as planned.
Why apply through Fundwise
- One application, every lender we partner with
- No hard credit pull to see your matches
- Free Money screening for tax credits included
- Real human concierge if you get stuck