Where to get a bike loan when self employed
The lender may request further information if you’re self employed
Finding a loan when you work for yourself is never easy, and when you run your own business you may struggle to find a suitable motorbike loan from a bank or building society. The normal motorbike loans offered by the bike merchants may also not be available to you due to your self-employed status. Because you don’t fit in with the traditional guidelines which dictate whether you can have a bike loan or not, you may find yourself being rejected for a loan. Even attempts to get around this problem by asking for a personal loan can be unsuccessful. Each time you ask for a loan and are refused, your credit rating is affected, so this means that you are not only struggling to get a motorbike loan, you are also damaging your credit for future business loans and financial assistance for your business. If you really want to have a loan, then the options as a self-employed person are seriously reduced, but you may still be able to find a loan if you do the research.
Options for self employed
Although the major lenders may have turned you down for a motorbike loan, you may still be able to find other lenders who can help you to get the bike you want. These lenders often offer to lend you money with proof of income for the last month only. They may also offer a shorter loan application, with less evidence of income required for the forms. You may still have to prove that you can repay the loan, but you should not have to prove that you have earned enough to cover the full loan amount over the last year. The lenders may even not perform a credit check if they are satisfied that you can repay the loan.
Although there are lenders out there willing to offer you the money you need to pay for your bike, finding them may not be easy if you have no experience of the financial world. You may struggle to find lenders who are willing to deal with your lack of documentation, or who are not able to give you low enough interest rates. In order to find a lender that can meet all of your needs, you should consult with a loan broker. Explain your situation, and discuss what in particular you need from your lender. The broker will then act to find a lender that suits your requirements, and you can then contact the company yourself.
Taking out an application
A motorbike loan is a serious commitment, and requires that you are able to afford to repay the loan. This is particularly important if you are self-employed, since your business could be vulnerable to proceedings if you fail to pay back the loan on the bike. Most lenders will seek the return of the bike itself, but if you are not able to provide this, and default on your loan, then you are putting your own business at risk. Bankruptcy or an IVA, which can be the ultimate result of failing to repay your loan, can also cause problems for your business. You should be aware of all of this before seeking a lender offering bike loans to self-employed people.