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Often, taking out a personal loan is the most direct route to cash for your business. Simply borrow the funds you need under your own name. While you need to have sufficient collateral to cover the loan, you do not need to advise the banker on all details of your business venture.

Later, as your business and your ability to pay off debt increase, switch to commercial borrowing. This type of loan is generally term financing: money received in a lump sum with a specified pay-back period that includes payment on the amount borrowed plus interest.

Taking out a personal loan is sometimes the easiest method for many, particularly when the amount needed for start-up is small. There is no requirement for a business plan and in some instances the cost of the money can be less. As long as you have the collateral and can satisfy the bank of your ability to pay, you should have not have any difficulty.

If you plan on this type of borrowing, remember that the money is for your business, so incorporate the principal and interest payments into your business records as a loan from you. You borrow from the bank and your business borrows from you.