Loan for self employed

Blue11_2

Hi there, does anyone have any idea which companies are sympathetic to self employed applicants that have low net profits due to their accountant doing his job too well!! lol

My credit rating is good even though i have applied for a couple of loans recently and have been knocked back.

The loan is for £16,000 to clear credit cards

Any ideas anybody please?

Blue

CLAPTON

how 'low' is 'low'?

Blue11_2

CLAPTON wrote: »

how 'low' is 'low'?

My Net profit on my last accounts is £6500

My wife's income is £8000

Blue

CLAPTON

A potential lender will see you have 16k of debts and want to borrow another 16k (i.e 32k in total) on an income of only 6,500.
So no responsible lender (i.e. with APRs less than 100%) is likely to touch you.)

Maybe you could look for low life of balance credit cards and shift your highest APR debts
or if you have a good relationship with your bank you could try them.

Blue11_2

CLAPTON wrote: »

A potential lender will see you have 16k of debts and want to borrow another 16k (i.e 32k in total) on an income of only 6,500.
So no responsible lender (i.e. with APRs less than 100%) is likely to touch you.)

Maybe you could look for low life of balance credit cards and shift your highest APR debts
or if you have a good relationship with your bank you could try them.

Perhaps i didn't make myself clear the new loan is to replace the £16k on credit cards so i will not have £32k just the new £16k

CLAPTON

You did make yourself clear.. I'm just saying how a lender will see it; as once you have the money there is no (legal) requirement to use it for debt consolidation.... so you could have debts of 32k.
In any event, it would be the same with only 16k of debt and an income of 6.5k per annum.. 6.5k is less than 500 per month and servicing a debt of 16k would probably cost over 300 per month.... so no responsible lender would consider this.

Blue11_2

CLAPTON wrote: »

You did make yourself clear.. I'm just saying how a lender will see it; as once you have the money there is no (legal) requirement to use it for debt consolidation.... so you could have debts of 32k.
In any event, it would be the same with only 16k of debt and an income of 6.5k per annum.. 6.5k is less than 500 per month and servicing a debt of 16k would probably cost over 300 per month.... so no responsible lender would consider this.

What about my wife's income as the loan will be in joint names.

Will they not take that into consideration?

Kavanne

Blue11 wrote: »

Perhaps i didn't make myself clear the new loan is to replace the £16k on credit cards so i will not have £32k just the new £16k

You did make yourself clear but once the lender has given you the money there's nothing stopping you spending it on something else instead of clearing the credit cards, so the loan company have to factor in that risk when lending to you.

Blue11_2

Kavanne wrote: »

You did make yourself clear but once the lender has given you the money there's nothing stopping you spending it on something else instead of clearing the credit cards, so the loan company have to factor in that risk when lending to you.

I understand what your saying but they can pay the cards off in fact i would insist they did.....

Never mind debt management here i come!

Kavanne

Blue11 wrote: »

I understand what your saying but they can pay the cards off in fact i would insist they did.....

Never mind debt management here i come!

they won't pay off the CC accounts for you, they will pay the money into a current account

Blue11_2

Kavanne wrote: »

they won't pay off the CC accounts for you, they will pay the money into a current account

Natwest and Black Horse both pay the cards direct, thats the 2 i have tried and been knocked back by both.

Do debt management companies deal with Self Employed people?