personal loans for the self employed

Tixy

Being self-employed in a cash industry and only having been self-emplyed a fairly short time, I'd expect your bank may well want to see a copy of your accounts (or a copy of your tax return) showing not only turnover for the business but also the profit you made in the last year.

As a sole trader (presumably you are not trading as a limited company?) it not what you pay yourself as 'wages' that they are interested in, its how much profit you make a year, as that is your income.

Willow_K

What Tixy says is true in theory - simply having the cash coming in is usually not enough - you would normally need to show accounts as well. If you have not been trading long enough to have end of year accounts, a copy of your current 'books' would usually suffice. It is definitely true if you were to apply for a loan to someone other than your own bank.

Saying that though, OH is a sole trader and is able to access personal finance from our bank and they have never asked to see his books or accounts (both personal and business accounts are with this bank). He gets better rates than I do and I earn more.

I would suggest that you go into your bank to set up a business account - which you need to do anyway, regardless of whether you are going to get a loan or not and ask them at the same time whether they need to see the books.

I may be wrong, but I get the impression that your business is largely cash based with few expenses? If so, your profit will largely tally up with the cash that is coming through the account, so even if they do need to see the books, it shouldn't cause any problems.

Are you keeping even basic accounts? If not, then you need to start otherwise filling in your self assessment will be very tricky.

pearls_of_wisdom

Willow_K wrote: »

What Tixy says is true in theory - simply having the cash coming in is usually not enough - you would normally need to show accounts as well. If you have not been trading long enough to have end of year accounts, a copy of your current 'books' would usually suffice. It is definitely true if you were to apply for a loan to someone other than your own bank.

Saying that though, OH is a sole trader and is able to access personal finance from our bank and they have never asked to see his books or accounts (both personal and business accounts are with this bank). He gets better rates than I do and I earn more.

I would suggest that you go into your bank to set up a business account - which you need to do anyway, regardless of whether you are going to get a loan or not and ask them at the same time whether they need to see the books.

I may be wrong, but I get the impression that your business is largely cash based with few expenses? If so, your profit will largely tally up with the cash that is coming through the account, so even if they do need to see the books, it shouldn't cause any problems.

Are you keeping even basic accounts? If not, then you need to start otherwise filling in your self assessment will be very tricky.

many thanks to WILLOW - TIXY -for your last couple of posts i suppose what i've heard is not probably what i wanted to hear i.e i need to make various improvemants but to put it plainly my original post has served it's purpose as i am now much better informed about where i'm coming up short,thankfully i'm not in any desperate need of a loan at this point and will delay any application until later in year having improved upon way i use bank accounts finally thanks again for all your time and efforts in responses:T

askpaisa

Great Information friends.