Loan for entrepreneurs – consumer credit or business loan?

As an entrepreneur you can apply for both a personal consumer loan and a business loan. The choice depends on the purpose – here is a guide to comparing both options.

See options

For entrepreneurs, there are two clear tracks: a personal consumer loan (financing your personal life) and a business loan (financing business operations). In consumer loan applications, entrepreneur income is examined more closely than employee income because it varies.

What is required from an entrepreneur?

For a consumer loan: regular entrepreneur income (usually 6–12 months of history), tax information, clean credit
For a business loan: company's financial statements (usually 2–3 years), business ID, business plan
Reasonable total debt burden
Finnish bank credentials account and business ID (for business loans)

Options

Personal consumer loan

A free-use loan for your personal expenses – not related to business activity. You cannot deduct interest for tax purposes.

Business loan for working capital

A short-term loan to finance salaries, inventory, or seasonal fluctuations. Effective annual rate usually 5–15 %.

Business investment loan

Long-term financing for machines, equipment, or real estate. Typically 5,000 – 500,000 €, with up to 20 years of repayment.

Finnvera

The state financing company offers SMEs competitive loans and guarantees. Always worth investigating before taking a more expensive loan.

Factoring / invoice financing

You sell invoice receivables to a finance company that pays quickly and collects them from the customer. Suits situations where customers pay slowly.

Things entrepreneurs should remember

Keep company and personal finance loans separate
Business loans often have a personal guarantee – you are personally liable if the company cannot pay
Business loans are NOT covered by consumer protection (cancellation right, interest cap)
Always compare offers from several lenders – prices vary significantly
Consult an accountant or auditor for major loan decisions

Lenders suited to you

Yrityslainat.com

Comparison

Loan amount: 1 000 € – 10 000 000 €
Rate from: Varies
Loan period: 3 kk – 10 v

Compare business loans Read Yrityslainat.com review

Qred Bank

Fast

Loan amount: 5 000 € – 500 000 €
Rate from: 1,75 %
Loan period: 1 kk – 3 v

Apply with Qred Read Qred review

CapitalBox

Large amounts

Loan amount: 5 000 € – 350 000 €
Rate from: 8,9 %
Loan period: 6 kk – 5 v

Apply with CapitalBox Read CapitalBox review

Frequently asked questions

Can I apply for a consumer loan as an entrepreneur?

Yes. You must demonstrate a stable personal income level with entrepreneur income, which usually means presenting 6–12 months of income history.

Is there a cancellation right for a business loan?

No. The 14-day cancellation right of the Consumer Protection Act does not apply to business customers. Read the contract terms carefully before signing.

When is Finnvera better than a bank?

Finnvera specialises in SME financing and often offers competitive loans or state guarantees. Worth checking first. Banks can be cheaper for established larger companies.

Can I deduct loan interest in taxation as an entrepreneur?

You can deduct business loan interest in company income taxation. Personal consumer loan interest CANNOT be deducted.

Ready to compare loans?

Find the lender best suited to you in one place.

Start comparing