If you are in self-employment and looking to borrow money with low interest rates then you can always 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 much quicker and more easily if you are self-employed with accounts worth three or more years and you have 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, although the amount you are offered may be lower and the rate of interest substantially higher.
Another factor that greatly affects your loan interest rate is how much security you are willing to offer. As with most other secured loan types, a home is the most common and effective asset to use as collateral when applying for a secured self-employed loan product.
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 more easily affordable.
Self-employed people may occasionally be asked to provide 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, the only thing a lender will need to approve your loan is a letter from your accountant.
There are a number of choices available for those seeking secured self-employed loans and because of the variations within this particular financing sector, it is often advisable to use the services of a dedicated secured loan specialist in order to get the best possible deal with the lowest rates of interest.