Loans For Self Employed People

If you are self employed and require a personal loan then our approved lenders and finance brokers below can help. They understand that getting a loan when self employed or as a small business owner can be a little more challenging, and with this they fully understand the lenders application requirements so that you have the very best possible chance of being approved for the loan you require.

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All credit types
Rated 5.0/ 5

Smart Money Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£10,000 - £500,000

Representative APRC
7.8%

Loan Term
5 - 35 years

Loan Type
Secured Loan Broker

Status
Homeowners Only
Max LTV 100%

This award winning broker of the year will search through 17 lenders in the market place to find the cheapest loans to suit your circumstances. They can help with debt consolidation, home improvements and buy-to-let applications.

Representative Example

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All credit types
Rated 4.9/ 5

Norton Finance Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£500 - £35,000

Representative APR
3.1%

Loan Term
2 - 5 years

Loan Type
Personal Loan Broker

Status
Homeowners & Tenants

Norton Finance are a personal loans broker who search their panel of lenders to find you the best deal possible. They will find you the cheapest loan that matches your credit rating and circumstances. Their service is free of charge and will not effect your credit rating.

Representative Example

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All credit types
Rated 4.7/ 5

AA Loans

Loan Amount
£1,000 - £25,000

Representative APR
3.1%

Loan Term
1 - 7 years

Loan Type
Personal Loan

Status
Homeowners & Tenants

The AA don’t just keep cars on the road, they can keep your finances running just as smoothly aswell. Whether it’s a new purchase, a holiday or getting some help to manage your existing debt the AA is here to help.

Representative Example

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All credit types
Rated 5/ 5

Choice Business Loans Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£1,000 - £10,000,000

Representative APR
3.1%

Loan Term
1 - 35 years

Loan Type
Finance Brokers

Status
Homeowners & Tenants

Choice loans can arrange a wide range of business finance solutions for business of all sizes. Services include business loans. Crowdfunded business Loans, Short term unsecured business loans, Merchant cash advance, Pension led business finance, Overdraft alternatives, Asset finance, Asset backed loans, Invoice finance, Commercial mortgages.

Property finance is available for residential, commercial, property development, overseas property, bridging loans and buy to let mortgages.

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All credit types
Rated 5.0/ 5

CarFinance247 Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£1,000 - £250,000

Representative APR
6.9%

Loan Term
1 - 7 years

Loan Type
Vehicle Finance Broker

Status
Homeowners & Tenants

Finance for cars, motorbikes, vans and motorhomes. We make the process hassle-free & provide the customers with a helping hand throughout. Our aim is to get the best possible finance deal, whilst providing an efficient service of the highest quality.

Representative Example

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Poor Credit
Rated 5/ 5

Uk Credit Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£1,000 - £10,000

Representative APR
39.9%

Loan Term
1 - 5 years

Loan Type
Guarantor Loan

Status
Homeowners & Tenants

Trusted, simple guarantor loans from £1,000 to £10,000. With the help of a friend or relative to guarantee your loan UK Credit could get you the cash you need.

Representative Example

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Poor Credit
Rated 5/ 5

Avant Credit Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£1,000 - £20,000

Representative APR
42.5%

Loan Term
1 - 5 years

Loan Type
Poor Credit Lender

Status
Homeowners & Tenants

AvantCredit offers online unsecured personal loans of £1000 to £20,000 from 12 - 60 months with fixed monthly payments. AvantCredit understands that people have a less than perfect credit history and a guarantor is not required and you don't need to be a homeowner.

Available via broker only
All credit types
Rated 4.4/ 5

1st Stop Personal Loans

Loan Amount
£2,000 - £15,000

Representative APR
18.2%

Loan Term
2 - 6 years

Loan Type
Poor Credit Lender

Status
Homeowners & Tenants

1st Stop Personal Loans offer unsecured personal loans from £2,000 to £15,000. Whether you’re looking to buy a new car, a new kitchen or thinking of any type of major purchase they can help secure the funding you need.

Representative Example

>> FREE Secured Loan Quote From Our Experts At Smart Money

Our award winning experts at Smart Money can search and compare 19 lenders from the market to find you the cheapest and best deal to match your financing needs. Quotes and personal illustrations are free from their Cemap qualified advisors.

What you need to know about secured loans for the self-employed

Loan options for self employed

Loan options for self employed

If you are self-employed and you have had to get a mortgage then you will be more than aware of how much evidence you need in order to be able to convince a lender to provide you with a loan. If you do not have this evidence you will find that lenders will not be prepared to provide you with a loan as they will perceive you to be too big of a risk. Therefore if you are attempting to get a loan in order to improve or expand your business you may find that you struggle to get the loan you want.

If you cant get an unsecured personal or business loan

If you are a homeowner and you don’t have the documentation of proof of income that you need in order to get an unsecured loan there is an alternative option you can take. You could potentially take out a secured loan that uses your home as security. This then makes it a far less risky option for lenders as there is something that they can use in order to get their loan back should you not be able to maintain the payments. However you do need to be aware this is a more risky option for you as you will not only have your mortgage secured against your home, you will also have your loan secured against it as well and so you will have to ensure that you maintain your payments for both.

What interest rates can I expect to pay?

The interest rates you will pay will very much depend on the loan amount you want, the term over which you will repay the loan, and also your personal financial situation. If you have a good credit history you are going to be able to get better loan deals than if you have a poor credit history. The lowest rates available on this sort of loan sit in the 5-6% area, and the higher rates can be anything up to 20%.

Loan calculator – how much will it cost?

This calculator will give you an idea of costs. The exact amount and APR payable will be provided from the lender subject to credit and affordability checks.

Your monthly payment will be:

£136.90

Interest on this loan will be:

£714

Annual Percentage Rate (APR):

3.7%

Total repaid will be:

£8,214

What proof of earnings or income is required?

For self employed applicants lenders will need proof of your income to ensure that you can afford the loan repayments. These may either be in the form of SA302 documents from HMRC or your accountant and/or you business or company accounts. Some lenders may also ask for details of your accountant so that they can verify any income claims you make.

Buy to let applicants have a small selection of options that allow you to take out a buy to let loan without proof of income. This product is ideal if you can’t proof your income, are self employed or work on a low income.

Dont jump in with both feet

If you are planning an expansion or your business, or even just raising the capital to start your brand new business, you will need to make sure that your investment is going to pay off for you so that you will be able to repay your loan. Being fully aware of your business, the potential for growth, the current market in your area of business, you actual or projected annual turnover are all things you will have to be able to take into consideration when considering your business loan. This is because you do not want to be in the position where you take out a large loan, only for your business not to improve its annual turnover. Many business loans, even if they are secured loans against your home, will require you to provide justification for taking out your loan in the same way as people who take out homeowner loans are required to do.

Go and see an expert

Although a secured loan is a loan rather than a mortgage, it is secured against your home and so has far more in common with a mortgage than a personal loan. Therefore you can find advice on the loan options available to you through a broker who specialises in providing secured loan products for self-employed people. When it comes to the self-employed, many loans are provided on an individual application basis and this is where a broker is vital as you are likely to miss out on a number of deals if you rely on internet searches only for information.

If you’re unsure which self employed loan is right for you or you need some guidance on homeowner and secured loans then speak to our experts on 0161 820 8099.
Their friendly advisors will be happy to discuss which options are available and to answer any questions you may have.

 

FAQ's

Is getting a loan more difficult when you're self employed?

Getting a loan when self employed either as a company director or a sole trader can be more challenging.

Often, the lenders proof of income requirements are more indepth such as the requirement for HMRC SA302 forms and further backround checks on your business and it's profitability. If you are looking to take out a larger homeowner loan for example, often it is an advantage to use a broker who can help you collate the neccessary forms and requirements to the lender needs.

Will I pay a higher interest rate on my loan?

No, there is no reason why you wont be eligable for the best rates while self employed. This is assuming you have a good credit rating and no history or missed payments or issues that may be present on your credit report. If you are in doubt then it is quite simple to sign up to one of the many free credit reporting agencies to further undertstand your credit report.

Can I get a loan without proof of accounts?

No. Lenders will need proof of your income to ensure that you can afford the loan repayments. These may either be in the form of SA302 documents from HMRC or you business accounts. Some lenders may also ask for details of your accountant so that they can verify any income claims.

Can I get a loan if self employed with bad credit?

Yes. There are lenders who will consider applicants with a lower credit score or a history of bad credit. Each lender will have their own requirements. If you are unsure they a loan broker can help place your application with the right type of lender who is more likely to accept your loan application.

Can I get a self employed loan with no credit checks?

No. All lenders will require you to have a credit check to ensure your credit worthiness and suitability. However there are a range of lenders who accept those with bad credit and who are self employed.

I am a pensioner and self employed, can I still get a loan?

Yes. There are a range of lenders who accept applications from pensioners who are both self employed and over the ages of 60, 56, 70 and 75 and beyond.

Can I get a self employed loan for my business?

Yes. There are many lenders who offer loans for business purposes. This may be for sole traders or directors who wish to take out a loan for their limited (LTD) company.

Can I get a loan while working part time?

If you are self employed and working reduced or part time hours then this will not effect your ability to get a loan assuming your income needs are enough to cover the loan repayments. The lender will access the affordability of the loan while taking onto consideration your earning ability and expenses.

Can I get a loan without a credit check?

No. All unsecured lenders require a credit check to check your creditworthiness. They will also check your file to see if you have any other outstanding credit issues, missed payments or CCJ's.

Can I take out a buy-to-let secured loan while working self employed?

Yes. There are many second charge lenders who are willing to offer secured loans on buy to let property. If you are self employed and require a secured loan on your BTL then this should not be a problem as long as you can provide adequate proof of income.

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Lending Expert is a credit broker, not a lender.

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