Are you starting a small business? One of the biggest challenges for many entrepreneurs is how to fund their idea. Funding options vary widely, ranging from dedicated small business loans to risky credit card debt. But one of the best ways to get your venture off the ground is with a personal installment loan. Why? Here are a few key reasons.
1. You Can Learn Everything In Advance
Installment loans are one of the easiest ways to know exactly what to expect before borrowing. With a credit card, for instance, you may have a wide variety of interest rates, spending limits, rewards programs, or payment amounts. The details are often spelled out only in the fine print of long contracts. Other sources of funding, such as interest-only loans, often bring surprises like balloon payments.
A personal loan, though, usually comes with published rates, online calculators, and a loan agent to go over your agreement before you sign. You can do diligent research and have confidence that there won't be unwelcome surprises.
2. It Isn't Dependent on Your Business
The main reason it's so hard to get small business funding is that it is an unproven borrower. Unless a loan is personally guaranteed, the lender has no recourse if your business can't make the payments. Avoid these obstacles that trip up many entrepreneurs by using your own borrowing power instead.
As long as you borrow in a responsible manner, you will likely find that you qualify for a good loan with reasonable terms and the same repayment arrangement you would face going through business lending. But the process is likely to be much easier and faster.
3. It's Easier to Budget
A credit card's borrowing rate can change at any time, as can the monthly payment amount. Variable-rate loans, vendor credit, and equity lines of credit can all have the same problem. An installment loan, though, is a stable payment that doesn't change from month to month. It also comes with a fixed time limit and unchanging interest rates. All of this can make budgeting much easier.
When you need to borrow for a new enterprise, the last thing you want to add is more stress. A simple installment loan is one way to avoid this problem. With stable payments, no surprises, and a fast approval process, this may be just what you need to finally start realizing your dream. Learn more today by making an appointment with a lender in your area.
To learn more, contact a resource like Ardmore Finance.Share