Should I take a payday loan to invest in my business?

Some experts believe that the healthiest thing for an entrepreneur’s finances is to separate personal finances from those of their company, so as not to put savings or personal assets at risk. However, we know that this is not always possible if we are talking about an SME or a venture that is just taking off.

The needs of your business are key for you to make this decision. Of course, if there is urgency or an excellent opportunity in the market, it is best to access a personal credit that will always be faster to get extra money. However, if the loan is to make an investment of new machinery, you may need a bank loan.

The two options have their pros and cons:

The two options have their pros and cons:

  • Personal credit:

One of the main benefits of personal credit is that you can have extra money in a matter of hours. Your request is fast and online. These are data to take into account if suddenly there is an opportunity to buy equipment or hiring personnel urgently.

In addition, when you ask for the money you will not have to give explanations or present invoices of purchases demonstrating that the borrowed silver was really used to make an investment in your company.

From Good Finance you can access your personal credit of a minimum of $ 3,000 and a maximum of $ 12,000 to be returned in 1, 2 or 3 installments according to your needs. Our operations are totally transparent and you can see all the interests and costs of your loan in our simulator.

Bank loan

Bank loan

Unlike a payday loan, time is a factor in a bank loan. A business loan necessarily follows a process and does not have the immediacy of a personal one. Surely first you will have to have an account and a credit rating to determine how much money they will lend you.

That is, this type of loan involves the application, the delivery of a business plan and financial information.

Then comes the document review, the potential approval and, finally, the delivery of the resource, something that can take up to a month.

A bank will always offer credit packages that fit the needs of your business, which include payment terms, interest rates adjusted to your finances and legal protections.

In addition, a bank can support you in the business loan if you have a good record in account management.

Unlike a personal credit

Unlike a personal credit

a bank loan may be for higher values ​​but you must always submit so that you are asking for the money. For example, if you are going to make a first export, you will be asked to present documentation or a contract with the client abroad. If the application Good Finance extra is to buy machinery you will have to present the invoices and, perhaps, a projection of how this new equipment will influence your production.

Equally important is the personal relationship you can have with the credit institution, because it can open or close the door.

We hope that all this information will help you and that your venture hits the leap you need to keep growing !