What is a Self-employed Loan?
It can influence your ability to borrow an unsecured loan when you are working for yourself. Self-employed loans are specially designed credit product that is offered to individuals who run their own business. Such loans are repaid by the borrower within a period of 12 months to 84 months and the best part is – no collateral or guarantor is required for borrowing money.
If you do not have stable revenue, it might affect your chances to borrow a loan from some lenders – as they consider your profile to be risky. They will either offer you a loan with a high rate of interest or they might turn down your loan application altogether.
At Loan Broker, we work with lenders who offer self-employed loans to individuals after assessing their creditworthiness.
What are the Uses of a Self-employed Loan?
The lenders we are associated with offer self-employed personal loans online in the UK that can be used for a variety of purposes. The borrower may use the loan amount received by the lender to cover any emergency that popped up. Such small loans help people to maintain a constant flow of cash when they have additional expenses to bear.
Some uses of a self-employed loan are:
- Debt Consolidation: If you have multiple debts and you find it difficult to manage – then use this loan merge the multiple debts into one. This will help in easy repayment as for all loans taken, you will be making only one repayment.
- Household Upgradation: As a homeowner, you must always take care of your property. If you need to take care of any urgent household repairs , you may use the loan to cover the expenses.
- Improve your Business: You may use the money to cover the business expenses that you find unavoidable.
Bad Credit Self-employed Loans
You may find that if you have a bad credit history – it gets challenging to find a loan. Because your credit history records all your financial activities and when lenders find the defaults due to which you have a poor credit score – they feel lending you money is a risk. However, the lenders we deal with offer loans for self-employed with bad credit.
The lenders will perform the necessary checks to assess your loan eligibility and if they are satisfied by your creditworthiness, your loan application may be approved. Always make an attempt to improve your credit history to find loans with affordable rates of interest. Because for a poor credit profile, lenders always offer loans with high rates of interest.
If your loan application is approved, then ensure that you make timely repayments. This will help you build and improve your credit score gradually. Please bear in mind that a credit score cannot be repaired overnight, it takes your continuous efforts and patience for the repair.
FAQs on Self-employed Loans
You may apply for loans for self-employed people if (i) you are a citizen of the UK, (ii) you are 18 years or above (iii) you have a steady source of income. Proof of income is an essential document needed by the lender to make their final decision.
Applying for a personal loan is easy with Loan Broker. All you have to do is fill up the application form, submit it online, and sit back and relax. The lender will verify the information provided by you in the form and perform some necessary credit checks. And the result will be displayed on the screen.
The rates of interest depend on the lender. It varies from lender to lender. In addition to that, the rate of interest also depends on your credit profile. Self-employed loans for bad credit will have a high rate of interest.
No. Loan Broker doesn’t charge any upfront fee or any other kind of fee to the borrowers.
Generally, the time taken for a decision depends on the information provided by you and the lender. Once you submit the application online, it will be reviewed by the lender and then the decision will be displayed on the screen. However, it may sometimes take a little bit longer than a few minutes.
Finance Yourself Today – With Loan Broker UK
Loan Broker is licensed by the Financial Conduct Authority (FCA). We are a credit broker and not a lender. Getting loans for self-employed in the UK is now easier with our simple application process that may only take up to a few minutes. In addition to that, our lenders conduct a soft credit check initially to assess your loan eligibility that doesn’t impact your credit score.
As a broker, we search for the right lenders according to your financial requirements. We only deal with lenders who are authorised by the FCA to maintain and promote responsible lending. We do not charge any upfront fee to our borrowers and there are no hidden fees as well.
Apply with us to avail loans for part-time workers and you can also explore our wide range of unsecured personal loans that may help you sail through your period of emergency in a smooth manner.