Loan for self-employed people

asdfg

Recently I began to work for myself and now I urgently need some cash for my own business. However, the several credit companies I talked to seemed to believe that self-employment meant I did not have a steady income anymore, and either refused me credit or charged a very high rate.

Is it possible to apply for a loan with an sensible rate in my case? I know there is an uncertainty of my income in the beginning and a repayment break for the first months would be much appreciated, but there is potential in the business and I so wish to be able to continue. Many thanks in advance for any advice.

Mark7799

Have you done a business plan you can show any potential lender to justify your faith in the business? Several banks offering business loans will consider reduced payments in the first few months to a new business.

paulengland

have you try to realise equity from your mortgages ? it is the same as a secure loans and it is easier to get it becuase of the property involve

andymac746

Draw up a business plan projected earnings etc. Go and see your bank manager and convince him to give you the money.

loobs40

I am self employed and got my loan through Egg at a reasonable rate plus the chance to do over payments. They did spend over 30 minutes on the phone giving me the hard sell on Payment Protection policies but I just kept repeating the 'No thank you' mantra.

I had a loan and a credit card previously from Egg, so that may have made things easier. I can't actually remember if they asked me for my employment status or whether they just asked for how much I earned

yeovilmac

asdfg wrote:

Recently I began to work for myself and now I urgently need some cash for my own business. However, the several credit companies I talked to seemed to believe that self-employment meant I did not have a steady income anymore, and either refused me credit or charged a very high rate.

Is it possible to apply for a loan with an sensible rate in my case? I know there is an uncertainty of my income in the beginning and a repayment break for the first months would be much appreciated, but there is potential in the business and I so wish to be able to continue. Many thanks in advance for any advice.

Hello there,

When I started my business three years ago, I went to Business Link for some general advice and the advisor there pointed me in the direction of an agency, local to me, who subsequently lent me the money I needed.

I had a terrible credit rating, a new business too but they lent me £3,000 to start up. I had to pay interest only repayments for the first three months ( about £11 a month ) then the normal payments kicked in at £105 a month, which meant I repaid £3,465 in total.

Contrast that to a loan from Welcome that I took out previously. It was £197 a month to repay over three years, a total of over £7,000.....

Good luck

Martin