Self-Employed Loans, loan Company UK
Self-Employed Loans
Before discussing loans for the self-employed, let us understand
who are defined as self-employed by any loan company in the UK.
If you operate a business or practice any particular profession
as an individual, a sole trader, in partnership, as an
independent contractor or an independent consultant then you are
considered self employed. Being self-employed comes with its own
range of problems and challenges. Getting a self-employed loan
is just one of them.
Traditionally, getting self-employed loans used to be an almost
impossible task. The rate of interest on a loan in the UK for a
self-employed person was very high. However, because of
increased competition things have changed. As more and more
people prefer to be self-employed every loan company in the UK
has also started offering self-employed loans. Now if you are
having difficulty in getting a self-employed loan then it's more
likely to be because of a lack of information rather than a lack
of choice.
If you have bank account records for more than three years and
have a good credit record, every loan company in the UK will
accept your application for a self-employed loan. Moreover,
online loan resources like Moneyeverything.com have made access
to self-employed loans so easy that you share the same platform
with any person on a regular salary. However, if you have had
bad credit history and you are self-employed then also you can
apply for a bad credit loan in UK.
To ensure you never fall short of choices for self-employed
loans, file your returns on time and do not understate your
earnings in your accounts, otherwise you might be cutting down
the upper limit of the amount of self-employed loans you can get
from any loan company in the UK.
Self-employed loans require a down payment of 20 to 40% so that
the lender's risk is reduced. When you apply for this type of
loan in the UK you need to submit 2 to 3 years of personal
financial information if you work as individual or business tax
statements if you are in a partnership. At times a loan company
in the UK might accept your self-employed loans application
merely on the basis of your accountant's statements.
There are two special types of self-employed loans, 'low-docs'
and 'no-docs' loans. While in the first instance only a few
basic documents are required and checked to give you the
self-employed loan but in the latter no documents are required.
The interest rate of such loans is quite high.
Summary: Self-employed loans are meant for those who work as an
individual or in partnership or have changeable employment.
Self-employed loans generally have a high rate of interest.