Loans for Self-Employed People

Self Employed Loans

Even though it can be more difficult for self-employed individuals to get a loan relative to a salaried individual, Proper Finance can help.

If you are looking to get a self-employed loan, we can help you get the best rates and terms to suit your requirements.

You can apply for £1,000 to £500,000 repaid over 1 to 20 years, with flexible repayment options and bad credit taken into consideration.

Click the “apply now” button below, and complete your online application in as little as 5 minutes.. There are no fees for applying and successful applicants can often receive funds in a matter of days or weeks.

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What Kind of Loan Should I Get as a Self-employed Person?

Secured loans products are generally considered to be more suitable for self-employed people. This is because lenders will not have to worry too much about your income when their money is secured against an asset of yours, such as your home or your car.

This is why secured loans are better options for people with poor credit histories or self-employed people with inaccurate or unreliable records of their accounts, as is the case for many self-employed people.

To Be Considered Self-employed You Must:

  • Operate a business or profession as a sole proprietor
  • Be a partner in a partnership; or a
  • Consultant;
  • Independent contractor;
  • Someone in changeable employment

Can I Still Get an Unsecured Loan If I’m Self-employed?

Yes – it may still be possible for you to get an unsecured loan as a self-employed worker. In order to be eligible, you must have a good credit rating and evidence proving that you have a regular cash flow such that you will be able to afford your repayments.

The interest you are charged will usually depend upon whether you have certified accounts or some form of proof of income. You may end up paying more in interest as a risky customer if you do not have comprehensive records of your accounts. Your loan application will be processed more easily if you are self-employed with accounts worth three or more years and a good credit record. If you can fulfill these requirements your application will be quickly and easily processed by our fair and supportive lenders, without the hassle.

Things to Consider:

  • Your monthly incomings – are they regular?
  • How you will use the loan
  • How much do you need to borrow?
  • Other essential outgoing payments

There is no reason why self-employed people should not have access to loans products; being self-employed just means that there are different administrative steps that go into applying for a loan than for those that have clear monthly salaries from an employer. If you are able to ensure that your financials are as clear as possible and that you will be able to make your monthly repayments, then there is no reason why a secured loan cannot be the product for you.

How much can I borrow?

As a self-employed individual you are eligible to borrow from £3,000 to £500,000. The repayment terms range  from one year to 30 years.

Rate will vary depending on amount borrowed, your financial history and current business performance

What Are Self-employed Loans Used for?

Self-employed loans provide finance for people running their own business. The loan can be used for any business purpose you may require. Some examples may include;

  • Hiring new staff to meet increased demand
  • Paying existing staff
  • Buying new machinery
  • Paying shipping costs
  • Buying new inventory
  • Upgrading technology
  • Purchase a company car
  • Marketing expenses
  • Paying invoices

Can I Get a Self-employed Loan With Bad Credit?

Yes you can still get a self-employed loan with bad credit. However, you will require a valuable asset in which you have equity to secure against the loan. Secured loans are ideal options for self-employed people with bad credit or a who have a limited history of company accounts. Securing an asset against the loan diminishes the risk to the lender, increasing the likelihood of being accepted for a loan. If the self-employed individual fails to make their loan repayments , the asset will be repurposed and sold to meet the loan requirement.

It’s harder for self-employed people with bad credit to qualify for an unsecured loan. If you have bad credit you may still be eligible for an unsecured loan if you have proof of strong business performance and an ability to generate regular monthly cash flow  to service the loan repayments.

What Do I Need to Apply for a Self-employed Loan?

  • Proof of address: council tax or utility bill
  • Proof of ID : passport or driving license
  • Company information : what your company does and details on anyone who has financial incentives in the company
  • Bank statement: to review your monthly outgoings
  • Tax return : SA302 form to show proof of income which can be downloaded from HMRC online account

How Does Our Site Work?

Firstly, use our free and simple comparison table to compare rates from our list of featured lenders. You can click through and apply on their website directly. Alternatively, you can provide us with a few of your details and one of our partners will get back to you promptly to discuss your options.

The main benefits of our website include:

  • No upfront fees
  • We will not pass on your details to third parties without your permission
  • Our site is on a secured server (https) to protect your details
  • Compare rates from several competitive lenders
  • Choose from over 50 different unsecured loan products

Because we have partnered with multiple lenders, we are able to offer you the choice you deserve when it comes to finding the right loan for you. With us, you are free of the restrictions and set-rates involved in looking at a single lender.

We allow you to borrow from £50 up to £50,000 from one of our many lenders.

The Criteria for Applying:

Whilst the criteria may vary between lenders, the eligibility factors include:

  • Must be a UK Resident;
  • Must be over 18 years of age;
  • Must have a working debit account, email address & phone number;
  • Must be employed, earning at least £500 per month and able to afford monthly repayments;
  • Must have no history of bankruptcy, CCJs or IVAs.

What happens if you cannot repay?

Failing to repay your loan may result in your credit rating being negatively impacted, which could harm your ability to access other financial products in the future. If you take out a loan that is secured against an asset, such as your home or your car, defaulting on your repayment could lead to the repossession of that asset.

Please ensure that you choose a realistic repayment term when applying for a loan with any one of our providers such that you are able to make your monthly payments. If you expect that you will not be able to make a monthly repayment, ensure to let your chosen lender know in advance. Most lenders have sympathetic policies which allow for a grace period of a couple of days if you ensure to notify them of your situation.

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