Self-employed Loans

Being your own boss does have some great benefits, but it can make finding a loan more difficult. We’ll explain why here, as well as how self-employed loans can help.

Personal loans from £100 to £10,000
Instant online decision
8 out of 10 customers accepted by us

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Representative Example: If you borrow £1,800 over 24 months at an annual interest rate of 41.2% (fixed), Representative 49.9% APR, you would pay £111.28 per month. The total amount repayable will be £2670.72

Self-employed loans

There are millions of self-employed people across the UK and working for yourself has lots of benefits. You’re your own boss, you have the freedom to fit your work around your family, you might be able to work from home…

However, it has its disadvantages too. For example, finding a good deal on a loan can be a difficult task. That’s because some lenders may consider you more of a risk to lend to, as your income could be classed as unstable. This means they may be unprepared to lend to you, or borrowing from them could be more expensive.

Whether you’re a contractor, sole trader or run your own small business, a self-employed loan could help you borrow, so be sure to get a self-employed loan quote.

Proof of income

Responsible lenders need to make sure that loans for self-employed people will be repaid, so they’ll ask to see evidence of your income. It’ll vary depending on the lender, but you may be asked for as little as 6 months’ proof of income, or as much as 3 years. This could be bank or business statements, or a finalised accounts statement; again, this will depend on the lenders’ requirements.

Use your self-employed loan for almost any purpose

Self-employed loans can be used for almost any purpose. Whether you need to make some home improvements, buy a new car, or pay for school or university costs, it could help.

Perhaps you need a bit of extra help with your business? That could be buying new office equipment, or a van to help you expand – a self-employed loan could help you do this.

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Common questions

I am self-employed and have bad credit. Can I still get a self- employed loan?

Yes, you could be eligible for a self-employed loan if you have a bad credit rating. Even if you have mortgage arrears, defaults or CCJs registered against you, there are lenders out there that should be willing to provide loans for self-employed people in your situation.

I’ve been rejected by other lenders in the past for a self-employed loan, can I still apply?

Just because you’ve been rejected by one lender, it doesn’t necessarily mean you’ll be rejected by another. Each lender has their own acceptance criteria and some specialise in helping the self-employed and those with poor credit.

We wouldn’t recommend applying for lots of loans at once as each application leaves a mark on your credit score. However, we accepted 8 out of 10 applications for a self-employed loan quote – so why not see if you’ll be pre-approved today?

Can I use a self-employed loan to consolidate my debts?

Yes you can. If you’re struggling to keep track of all of your repayments towards different debts each month, loans for self-employed people can help you to pay off all of your existing credit cards, overdrafts and unsecured loans. You’d be left with just one monthly payment instead of lots of different ones.

Please be aware that consolidating your debts with a loan could increase the amount of interest you pay in total, as you’ll be repaying it over a longer period of time.

You can learn more about debt consolidation here

Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk