Candlestick makers, dressmakers, bakers, video game makers – the self-employed and sole traders are some of the nation’s most entrepreneurial workers.
However, like most businesses, there are times when the self-employed need a business loan. But what kind of loans are available, and what do you need to secure them? Read on the find out all you need to know about business loans for the self-employed.
Just because you’re self-employed, it doesn’t mean you can’t get a business loan. Lenders may require more paperwork from sole traders and the self-employed than they would from fully employed borrowers or larger companies, but there are still finance options for those who work for themselves:
Top tip: Don’t get caught out by an error on your credit report, always check your personal and business credit scores before you apply for loan refinancing (secured or unsecured).
The documents you will need to secure a loan will vary from lender to lender and for the type of loan you are applying for. However, most lenders will need to see:
No. If your credit is good and you have all the necessary documents, the interest rate you pay and the amount you can borrow should be no different than for fully employed borrowers.
Even if you have bad credit and have been turned down elsewhere, it may still be possible to secure the loan you need. Note that weak credit may mean paying a higher interest rate, and, depending on the type of loan you are seeking, some lenders may also ask you to provide collateral to secure the loan.
General self-employed and sole trader loans can usually be used to cover any business need. However, some loans may only be used for specific activities.
Whether you need a loan to grow your business, cover a cashflow dip, or even pay your taxes, there’s a self-employed and sole trader loan for you. Don’t waste time going from lender to lender. Register with Swoop to access the widest range of loans at the best rates, and with the best terms and conditions. One click is all it takes. Get the self-employed loan you need today.
Swoop was amazing! I was looking for refinancing and they were straight onto finding me the best possible option. I would highly recommend them.
Owner, F45 Cambridge
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