{"id":235784,"date":"2025-09-22T15:00:14","date_gmt":"2025-09-22T15:00:14","guid":{"rendered":"https:\/\/evertise.net\/?p=125787"},"modified":"2025-09-22T15:00:14","modified_gmt":"2025-09-22T15:00:14","slug":"onemain-financial-personal-loans-vs-business-loans","status":"publish","type":"post","link":"https:\/\/ipsnews.net\/business\/2025\/09\/22\/onemain-financial-personal-loans-vs-business-loans\/","title":{"rendered":"OneMain Financial: Personal Loans vs. Business Loans"},"content":{"rendered":"

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For an entrepreneur trying to launch a small business, raising enough cash to get off the ground can be a challenge. Many small business owners may turn to loans to tide them over, but it can be difficult to get a small business loan if the company doesn\u2019t have a strong financial history yet.\u00a0<\/span>\u00a0<\/span><\/p>\n

In those situations, the business owner may seek to take out a personal loan instead. But before they do, it\u2019s important to know <\/span>the differences between personal and business loans and understand which is best for their circumstances.\u00a0<\/span>\u00a0<\/span><\/p>\n

What is a Personal Loan?\u00a0\u00a0\u00a0\u00a0\u00a0<\/strong><\/p>\n

Personal loans<\/span><\/a> allow individuals to borrow a lump sum of money from a lender, bank or credit union, and repay it through fixed monthly payments, with interest.<\/span> They\u2019re usually taken out for personal expenses, like home renovations, purchasing major appliances or covering medical bills. Personal loans may be secured or unsecured. A secured personal loan is backed by collateral, something valuable like a home or vehicle. If the borrower fails to pay back the loan, the lender may take the collateral to recoup their losses. An unsecured personal loan, however, is approved primarily on the applicant\u2019s income and credit history.\u00a0<\/span>\u00a0<\/span><\/p>\n

What is a Business Loan?\u00a0<\/strong><\/p>\n

A business loan is designed specifically for business purposes, like purchasing property, materials or equipment, or covering payroll and other expenses. Business loans can be either secured or unsecured. For secured loans, the business puts up collateral like property or equipment to back the loan. Business loans are available from banks, credit unions, nonprofits and government lenders, such as the Small Business Administration.\u00a0<\/span>\u00a0<\/span><\/p>\n

Can You Use a Personal Loan for Business?\u00a0<\/strong><\/p>\n

In some cases, an entrepreneur may be able to take out a personal loan to support their business \u2014 if the lender allows it. In other cases, a business owner might use a personal loan to cover their living expenses so they can invest more of their own money into their company. Before taking out a personal loan for business purposes, the applicant should talk to their lender about what they plan to do and confirm that they may use the loan for that purpose.\u00a0<\/span><\/p>\n

Advantages of a Personal Loan\u00a0\u00a0<\/strong><\/p>\n