Self Employed Loan Help

drea_b

Hi All

lurked here for some time but was wondering if anyone had advice.

Hubby is self employed and needs his van for work. We had hoped to wait until at least nearer the end of the year before getting a new one as a) I'm on maternity leave at the minute and b) we wanted to pay off as much of the CC before getting a loan. Anyway the van is dead - would cost more to get it fixed than it's worth so we'll need to get a new one.

We are hoping to get a loan to get a new van and pay off the CC's (about £3k on the cards) Hubby can provide 3 year tax return so hopefully this won't be an issue and his credit rating is OK - one late payment on the CC back in May before we set the DD up)

can anyone suggest the best places to try for a loan when self employed or will it not make a difference. Ideally we would prefer one where we can maybe defer the first two months payment (not sure if these are still done) to help until I return to work full time in April.

jonesMUFCforever

Has he got a business account? - / he needs a business loan.

Mikek_3

Why does he need a NEW van?A good secondhand one willdo the job.

Dont borrow to pay cc debt,you cant get out of debt by borrowing money!!

paddyrg

If you have clean credit history, try zopa - some really good rate loans there for unsecured loans.

The business could borrow money, but may need a personal guarantee, you're not really much better off that way. Perhaps you can find a van on finance? Cost will be higher, but it is probably easiest route.

drea_b

Thanks for the reply's.

Sorry, should have been clearer - the van will be second hand just new to us.

Is car finance (ie HP etc) easier to get than a personal loan?

paddyrg

The easier to get, the more it'll cost you as a rule. If you can get a p2p loan with zopa and pay cash for a van, you're going to get a better deal than going through HP arrangement fees, etc., and you can repay early without penalty. Also consider the Zopa listings opportunities, I've seen some loans go really cheap there, way cheaper than I would ever offer (like 6-7%), when people like the sound of the borrowers. - Lenders compete to offer you the best rate!