Let Us Answer All of Your Questions
How do they work? What are Self Employed Loans?
Self-employed loans are personal loans that are either secured against an asset such as a home or property or are entirely unsecured. Loans for self-employed workers are specifically tailored for individuals employed by themselves, either by working as a freelancer or as the owner of their own business.
What makes these loans different from other personal loans?
If you are self-employed, then you may have already found it difficult to apply for a loan due to the dependability of your income. Here at iThink Finance, we understand how important it is to feel unrestricted and have the financial freedom to live up to your financial ambitions.
The main difference between personal loans for self-employed and regular personal loans is that lenders who offer loans to those who are self-employed are that these lenders have different lending criteria. This allows lenders to account for those freelancers and business owners who may not have a conventional salary.
Why is it so difficult to get finance if you’re self-employed?
It can often be difficult for freelancers and business owners to apply for loans, as many lenders require applications from employed people who can provide clear evidence of a steady and regular income. This allows lenders to make the necessary assessments on an applicants affordability and their financial position, to determine whether they can be relied upon to make the repayments.
However, if you are self-employed, it may be challenging to show that you have a secure regular income, as your salary may come from multiple different sources, proving difficult to quantify to some lenders. However, this is not the case for all lenders, and here at iThink Finance, we are happy to accommodate our customers’ needs and help you to find the best deal on your personal loan, regardless of your current employment situation.
Uses and Purposes What Can I Use These Loans For?
There are many different reasons as to why someone may take out one of these loans, the reasons for taking out an unsecured personal loan might be, but are not limited to the following reasons.
Home improvement or repairs
If you’ve come home from a hard day at work to find that your ceiling has sprung a leak, or that your kitchen is in desperate need of updating and refurbishing, a loan could cover the costs.
Large purchases or deposits
If you’re considering putting down the deposit on a new van for work, or maybe you need to invest in a new desktop to make your job easier, you could take out a self-employed loan to pay for the deposit.
Improving your business
Sole traders and business owners are continually looking at the newest innovations within the industry to make their businesses better. If you’re looking to take your business to the next level but don’t have the funds right now, then this type of loan could help.
If you’ve taken out credit in the past from multiple sources and are struggling to remember your repayment dates for each, or you’re just fed up of paying multiple rates of APR; then you could use your loan for debt consolidation.
Your big day could be something you’ve dreamt about since you were a child, so for most, you’ll want to ensure that your big day is a special one. A loan of this type could help you and your partner to have the wedding of your dreams.
Private medical bills
Whether you’ve just had to pay for emergency dental surgery, or whether you’re simply considering a cosmetic procedure, an unsecured loan of this sort could help you to pay for any outstanding medical bills.
Am I Eligible for a Self-Employed Loan? Will I be Approved?
All of the lenders that we work with as responsible lenders follow will have different lending criteria which you will have to meet for your application to be approved. However, as a minimum, you should be able to meet the following requirements.
- You should be a UK resident
- You should be over the age of 18
- You should have an active UK bank account
- You should have a regular income
What about if I have bad credit?
If you’re worried about applying for a self-employed loan on account of your poor credit history, then don’t worry. All of the lenders we work with understand individual circumstances and will consider all applicants reasonably, irrespective of missed repayments or CCJ’s in the past.
However, it is worth taking into account that if you are approved by one of our lenders, if you do have poor credit, then the interest rate you receive may be less competitive.
Are There Any Alternatives? Why should I choose iThink Finance?
iThink Finance can help you to borrow unsecured personal loans of £1,000 up to £20,000 for periods of between 1 to 6 years (12 to 72 months). Apply with us today and receive an instant decision on a loan for self-employed workers.
iThink Finance is a credit broker, not a lender, and we specialise in helping our customers find the best, fastest and most flexible loan to suit their circumstances. We charge no fees and have no charges for the service that we provide.
What are the alternatives?
- Guarantor loans - if you’re struggling to find a lender who is willing to lend you money on account of you being self-employed, then you could get a co-signary and take out a guarantor loan.
- Secured loans - alternatively if you’re struggling to get unsecured finance, another option is for you to secure your loan against an asset such as your home or property.
- Credit cards - for smaller amounts of money that you wish to borrow, a credit card may be more suitable. However, interest rates can end up being quite high.
- Savings - if you’ve been putting away money for a rainy day, now may be an excellent opportunity to delve into those savings to solve any money woes.
Frequently Asked Questions FAQ's
Getting a loan while self-employed can be tricky and confusing, so you must have accumulated a whole list of questions. And if we haven’t answered it already, take a look at the most frequently asked questions regarding self-employed loans UK below, as you may find the answer you’ve been looking for.
What information do I need to supply with my application?
- How much you wish to borrow
- Over what period you would like to spread out the costs of the repayments
- Reason for wanting to take out finance
- Name, address and date of birth
- Marital status and number of dependents
Upon being matched with a personal loan lender, you may be asked by a lender to provide proof of your incomings and outgoings in the form of bank statements and tax returns. This will be to ensure that you can afford to repay the loan you wish to take out.
Will you perform a credit check?
At iThink Finance, we will perform what is called a ‘soft credit check’ upon you submitting your application with us, to match you with the best-suited loan.
Once your application has been approved, the lender that you match with will perform affordability checks and a credit check to access your reliability and whether or not you can afford the loan.
Can I get a personal loan without proof of income?
No, when applying for a self-employed loan, a lender will require you to provide proof of income in the form of bank statements or payslips. Giving evidence of income when your lender requests it is essential as it is the lender's way of accessing and confirming a borrower's ability to repay their debts.