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Business Loans Vs. Personal Loans: What to Know

Lendio

It can come in handy if you’d like to consolidate debt, fund a home improvement project, or pay an emergency expense, such as a car repair or medical bill. Flexible: A personal loan can be used to pay for a variety of personal expenses, like car repairs, medical bills, and home improvement projects.

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Should You Ever Give an Employee a Loan?

Fundera

Maybe they’re faced with unexpected car repairs, medical bills for a family member, or even something like a surprise furnace replacement. Include the loan’s details—like total amount—and repayment terms—like payment amount, payment frequency, interest rate, and what happens in case of default. Paycheck Advance.

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13 Surprising Factors That Affect Your Credit Score (and Why Small Business Owners Should Care)

Fundera

When a credit bureau computes your credit score, their job is to produce a number that estimates—given your past and current financial history—how likely you are to default on future debts. Any contract where you choose to default on your payment obligations can end up in collections—gym memberships included. Gym Memberships.

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Employee Loans: Everything You Need to Know

Fundera

The promissory note will outline the loan’s repayment terms, including the payment amount, payment frequency, interest rate, and what happens if the employee defaults on the loan. Maybe they’re faced with unexpected car repairs, medical bills for a family member, or even something like a surprise furnace replacement.

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Boosting Your Odds of Loan Approval

Due

Borrowers may use personal loans to subsidize medical bills, car repairs, wedding expenses, funeral costs, and home renovations. This can be reassuring for lenders, as it reduces their risk in case of default. Mortgage insurance is a type of insurance that protects the lender in case you default on your loan.

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Business Loan vs. Personal Loan: Pick the Right One for Your Small Business

Fundera

So, people often use personal loans for things like help with student loans, home improvement, medical bills, car payments, etc. Which means that, if you default, the lender will look to seize collateral from you personally, rather than your business, or the other way around. Technically?

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Business Loan vs. Personal Loan: Which Should You Choose?

CreditStrong for Business

If you ever default, they’d be able to collect by seizing personal assets. If you default, the lender will seize your pledged assets. And of course, if you’re looking to finance something that isn’t business-related, like medical bills, debt consolidation, or home improvements, you won’t be able to use a business loan.