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.



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