When you are an entrepreneur, you actually have a few options when it comes to taking out loans. You can opt for a business loan, but you can also take out a private loan . Or maybe you want a combination of both? It is sometimes complicated, so it may be useful that you get this explained.
What are the differences between a private and a business loan?
To give you an example of a loan: a business mortgage is not at all the same as a private loan. When you enter into a commercial mortgage, you have to pay a relatively high fine when you, as an entrepreneur, decide to sell your business. If you have a business loan and you end it, then this bank will charge huge interest for this. Unfortunately, many entrepreneurs do not know this, so they pay a lot of money for this fine.
If you want to borrow money as a private individual through a mortgage, then you do not have this problem.
Do you want to sell your house as a private individual? Then you do not have to pay anything. With a private mortgage, you only have to pay a fine when you want to cross over to the mortgage. You also pay a fine if you want to repay your mortgage faster than originally agreed. As an entrepreneur you pay extra for this.
Are you an entrepreneur? Then it is recommended to take out your personal mortgage as a private individual and to separate it strictly from your company. This way you avoid having to pay extra high fines when, for example, you have to sell your home or when you want to adjust the loan. If you want to make such a mortgage for the company, you can still choose between a mortgage for private individuals or business customers. Here it depends on which conditions are offered and which conditions apply of course.
In most cases it is not possible to take out a private loan for business purposes. This is possible in exceptional cases, for example if you have your office in your home and want to set up a mortgage there. Always be open to the bank for which you need the loan. Preventing problems beforehand is always better than paying a towering fine afterwards that can be fatal for many freelancers and SMEs. Here you can read when you can take out a personal loan for the case.
You are an entrepreneur, but still not completely convinced or you still have some questions?
Are you an entrepreneur yourself, but do you still have questions about a private or business loan? Then we definitely recommend you to make an appointment with your bank or even with several banks. So you can ask your professionals questions and you can immediately learn more about which form of loan best suits your personal situation. Be well informed about both types of loans. In this way you will never pay too much and there are no unpleasant things to wait for.