Business or personal loan?

[Teddy Lop]

Just looking at borrowing some money to buy a van and noticed personal loan terms say you mustnt use the loan for business.

As the van will be a business asset but still my personal property (sole trader) does this still count? Doesn't seem any different from buying a car and using it for work. Looking around, actual "business loans" seem several times the APR.

[PurpleMoonlight]

I suspect that the loan application will ask for the purpose of the loan, and when you tell them a van alarm bells will ring.

[JapanRed]

I’m not an advocate of telling lies or commiting fraud but in this instance, how would the bank ever find out what you spent the money on?

[Deesee]

Get an asset finance quote (hp), if your a sole trader it should show the apr, but be aware it will probably highlight the flat rate of interest and the apr might be hidden, also kiv that any hp quote (for the apr) will include fees (acceptance /closing) etc which will bump up the apr (if included), you can pay these separately.

[river_rat]

Just say it’s for a car if they even ask. In my experience they aren’t bothered what you are using the money for.

As you say a personal loan is usually the cheaper option.