There are things that should never be mixed. For example, personal finances with the finances of your business. Even if you take care of both directly, it is important to be clear that business financing should never come out of a personal loan, just as it would be a bad idea to spend a business loan on personal matters.

Unfortunately, as there are some personal loans that are apparently faster and easier to obtain than loans to companies, many people go with the feint and end up using the typical short-term loan to print liquidity to your venture or your business. The problem is that these types of loans are not designed for business financing needs and in the long run they are always too expensive and risky.

Let’s look at five compelling reasons to avoid mixing personal and business finance, especially when it comes to credits:


It is difficult for you to get the amount you need

money loan

Normally, business loans are higher in quantity and cheaper than personal loans. If you resort to personal financing, you will realize that you may have to ask for more than one express credit to cover the amount you are requiring.

This can lead you to a vicious circle in which you exceed your borrowing capacity. The best thing you can do is look for a specialized business credit or one that gives you from the beginning the total capital you need, and with payment terms congruent with your needs.


Interest is higher

Interest is higher

Fast personal loans, pre-approved, “no credit bureau and” no guarantee “, are the most expensive and impractical financial products that exist. They are designed to be requested in case of great need or frank thoughtlessness, so they will never constitute good types of business financing.


You can affect your personal credit history

You can affect your personal credit history

The best way to put your credit history at risk is by accepting or requesting an express personal credit, regardless of what you use it for. Having problems with the credit bureau is something that can also close the doors of good future business loans, because at the end of the day the business is in your name. Do not risk.


You can lose your personal assets

personal assets

Debt on a personal level to inject liquidity into your business is dangerous because it puts you at risk of losing assets that include the assets of the company and your assets. Instead, business loans are more flexible with restructuring and manage guarantees that do not threaten your personal assets.


There are special alternatives for business and entrepreneurship requirements

There are special alternatives for business and entrepreneurship requirements

As much as applying for personal credit or accepting one that was already pre-tested in the bank seems like a good idea to get out of trouble with your business, it is not. Never is. The financial environment today offers loan options to companies much fairer and adapted to the needs of the market. With lower interests and more flexible terms.

In Liritum we help you and advise you all the way to find, compare and manage the credit that your business needs. We do it completely free and transparent, allowing you to access fair and affordable financing.

Come to us today and discover all that the right credit can do for your business.