Recent personal loans Q&A
How to get a van loan if you are self-employed
If you are looking to buy a van but you are self-employed you may be concerned about getting a loan in order to finance it. If you have a good credit history then you will be able to apply for standard mainstream loans; however you will need to be able to provide proof of income in the same way as those with a standard income stream will do. This is usually in the form of bank statements from at least the last three months.
What are the requirements to get a loan if you’re self-employed
There are huge variations in the requirements you have to satisfy in order to get a loan for a van if you are self-employed depending on the type of lender or finance provider you are going through. If you are going through a mainstream lender, and in fact most other lenders as well, you will have to have been resident in the UK for at least the last three years. You will also be required to provide evidence of the last three month’s income and proof business accounts, either through bank statements, or through your company records. Lenders will also require the normal proof of identity upon applying for your loan.
Unsecured loans for the self-employed
If you do not have a good credit history or your business is very new you may have trouble getting a mainstream loan and so you may consider an unsecured loan from a lender such as via a high street bank or lender. These products have far fewer qualification criteria attached to them as they do not use a credit score to ascertain whether you will be able to make the payments. Instead, these lenders will utilise your current financial information to make a judgement about whether you will be able to repay a loan or not.
Benefits of direct lender loans
The main advantage of getting a loan through a direct lender is that you can often get hold of the money you need that you would not be able to get hold of otherwise. This means that you will then be able to go ahead with your purchase and if you then manage to make all of your payments and pay off the loan you will also be able to start repairing your credit rating at the same time.
Disadvantages of direct lender loans
There are a number of disadvantages of direct lender commercial loans. The first of these is that there is a relatively low cap on the amount of money you can borrow, which is typically around £5000. The other significant disadvantage is that the interest rates that you will have to pay on these loans can be incredibly high, although for large, longer term loans you will find that these are slightly lower. Either way they are still much higher than for mainstream loans you may find from the high street banks or building societies.
Get all the details
Before you take on any loan, make sure you do some research and shop around in order to get the best deal. Particularly on direct lender loans, shopping around could save you a huge amount of money. Our experts can take away the hassle of finding a loan and can search the market in minutes to find you the best loans.
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