If you are self-employed then you can apply for a secured self-employed loan.
To be considered self-employed you must:
- Operate a business or profession as a sole proprietor
- Be a partner in a partnership; or a
- Independent contractor;
- Someone in changeable employment
The loan rate typically hinges on whether you have certified accounts or some form of proof of income. Your loan application will be processed a lot smoother if you are self-employed with accounts worth three or more years and a good credit record. These requirements usually mean that you will stand on the same platform as any regular salary worker.
If you have a poor credit rating or adverse credit history, such as mortgage arrears, payment defaults or credit card problems, secured self-employed loans are still available to you.
Another thing that greatly affects your loan interest rate is how much collateral you are willing to put up. As with most secured loans, a home is the most common and effective asset to use as collateral when applying for a secured self-employed loan.
Self-employed loans have traditionally been difficult to find and expensive. However, with a greater number of people working for themselves, secured self-employed loans are becoming more widely available and affordable.
Self-employed people can occasionally be asked for two to three years of personal and business tax statements, depending on whether they are a partner or a proprietor. If you are a partner then the tax statements of the company will sometimes be asked for. Sometimes all lenders will need to approve your loan is a letter from your accountant.
There are a number of choices for secured self-employed loans. Because of the variations within self-employed loans it is often advisable to search for considerable options while applying for loans.