Short-term/rolling contract, applying for unsecured £25k loan

includemeout

Hi

I'm a business owner and PAYE employee looking at applying for an unsecured £25k loan, unsure how to declare income on my application and thinking £25k might be a stretch.

My circumstances recently changed having spent about 12 months earning nothing as I wasn't taking money from the business, but as of mid-March I'm able to take £2000/pm from the business and now also earn £1600/pm from a couple days per week I'm working PAYE on a rolling contract, likely to be renewed for as long as I'd like to continue working there.

My employment status therefore is pretty unstable on paper. I can't absolutely guarantee the £500/pw self-employed income for longer than a few months (I'm currently negotiating and seeking new contracts, I'm confident I can maintain this but nothing is certain) and my PAYE gig could feasibly end tomorrow as per the terms of my contract, although I'm confident that it won't.

My question then is if I state £48k income on my application there will only be a couple months history of these transactions into my current account. Is that likely to be flagged as fraud for exaggerating income? And will my PAYE contract being short-term also count against me?

We rent which doesn't help but presumably working in my favour is my wife's generous wage and that she currently covers all of the rent and bills while I build my business. For what it's worth the Credit Club and Noddle reports show 999 and 5/5 - I'm using 4% of the credit available to me and have never defaulted.

A business loan is out of the question according to my bank manager, due to limited trading history.

Any advice would be much appreciated.

BrassicWoman

what's the loan for? there may be a more obvious way of funding the purchase.

includemeout

BrassicWoman wrote: »

what's the loan for? there may be a more obvious way of funding the purchase.

It's to self-publish a book so there will be money coming back from sales, but there's nowhere on a personal loan application to convince anyone of the viability of this kind of thing. That's why a business loan would've been better if it wasn't so difficult to get an unsecured one (I have no real tangible assets).

BrassicWoman

includemeout wrote: »

It's to self-publish a book so there will be money coming back from sales, but there's nowhere on a personal loan application to convince anyone of the viability of this kind of thing. That's why a business loan would've been better if it wasn't so difficult to get an unsecured one (I have no real tangible assets).

Hard copy books are not really where it is at any more, and often e sells better, and the money is better spent on marketing. How's your social media following doing?

If it's a sure fire gonna-sell book have you considered getting an agent who specialises in your field or genre? There are altternate routes than personal debt for this one.

DCFC79

Not able to help with the finance side but this thread might be of use if you decide to self publish.

https://forums.moneysavingexpert.com/discussion/5754740

includemeout

I was avoiding complicating things with the background but this is a niche area where digital devices have no penetration as the medium doesn't suit the work. So far the project has cost £11k, much of which was a personal loan (settled) and I had a few thousand from other sources. I suppose it's the culmination of half a life's work so if it completely bombs I can live with the repayments. If it's moderately successful it should allow me to look after my supporters at least and with any luck cover much of the loan.

0% cards was something I considered but many of the payments I need to make can't be made with card.

I think my main concern at the moment is that I don't end up with a Cifas warning even though I'd be honestly declaring what I earn now and for the foreseeable (all being well).

Edit: Just to clarify, bearing in mind the strange message I received about being a !!!!!!!!!!, I supported my wife through education over several years and she's happy to return the favour.

Nebulous2

You certainly seem to be willing to pursue your dreams. Good luck!

The only comment I have is that the lender may well ask for proof of earnings, if they suspect your earnings may not stack up.

BrassicWoman

kickstarter it. If there's as big a market as your reckon, they'll fund it up front.

includemeout

"Other sources" included a small crowdfunding campaign and a grant - I don't feel comfortable going back for more. I'm sure there are other more creative ways to source the funds but I'm so busy I don't have the energy to pursue them.

I applied for the loan with RBS, only declaring my PAYE income and despite the rolling contract and low income I was accepted immediately with the funds apparently available after the holiday period. It's almost a little troubling how easy that was. I have a current account with RBS and the account history would show frequent income and low expenditure so perhaps that helped. My PAYE income is only a little higher than the value of the loan however!

DCFC79

includemeout wrote: »

"Other sources" included a small crowdfunding campaign and a grant - I don't feel comfortable going back for more. I'm sure there are other more creative ways to source the funds but I'm so busy I don't have the energy to pursue them.

I applied for the loan with RBS, only declaring my PAYE income and despite the rolling contract and low income I was accepted immediately with the funds apparently available after the holiday period. It's almost a little troubling how easy that was. I have a current account with RBS and the account history would show frequent income and low expenditure so perhaps that helped. My PAYE income is only a little higher than the value of the loan however!

So you were accepted ?

Use the money wisely and keep up with the payments.

TheJackah

For this sort of thing, wouldn't it be easier to self-publish on Amazon? If anything, it will provide a starting income with minimal startup cost, if any.