Loans for Self Employed

Compare Self Employed Loans for Bad Credit with low rate guarantor loans & borrow upto £15,000

What is a self-employed loan?

A self-employed loan is very similar to a business loan. Essentially you can use it to get your business off the ground, expand it or invest in something to help move your small business to the next level. The number of people working for themselves is well on the rise, and being self-employed can throw up a number of unique scenarios that other businesses won’t experience.

Traditional lenders may only accept your loan requests if your small business is already well established though, and that’s where a guarantor loan can come in.

Can you get a self-employed loan if you have bad credit?

Obtaining access to loans and credit agreements can often be difficult when you work for yourself, regardless of your credit score. Lenders can be reluctant to loan money to people who may potentially have varying levels of monthly income.

If you’re new to being self-employed you’ll often be treated like you’ve got bad credit, as you won’t have any financial reports to show lenders. Traditional lenders may have misgivings about new businesses and people with bad credit scores borrowing money as there’s a concern that they won’t be able to pay it back.

This is where a guarantor loan can come in. With a guarantor, you may be able to borrow up to £15,000 and pay it back over time. A guarantor is essentially someone who vouches for you and will be able to make the payments should you fail to do so, and you can read more on who can be a guarantor here. Having this back-up and additional security makes lenders more willing to not only lend to those who work for themselves but keep self-employed loan rates lower. Find out more about what a guarantor loan is here.

What do you need to be eligible for a self-employed guarantor loan?

To be eligible for a self-employed loan, or a loan for a small business, you’ll generally have to meet the following criteria:

  • You must be a UK resident
  • You must be aged 18 or over
  • You must have a UK bank account that’s active
  • You must have proof of regular income
  • Pass whatever credit checks the lender has in place

On that last one, it’s worth noting that all lenders and loan types have different criteria when they check someone’s credit history. For many types of loan, having good credit is enough to be accepted, but every lender will look at different criteria. For a guarantor loan, these criteria are generally much more relaxed, as long as you’ve got a guarantor agreed when you apply.

What you can use the self employed loan for

A self-employed loan may be needed by those who work for themselves for a number of different reasons, these can include:

  • Business improvements, like a deposit on a van or repairs
  • Business expansion
  • Getting your business off the ground in the first place
  • Invest in something to help the business
  • Debt consolidation, to combine any other debts the business may have accrued and pay them off from one place

There are all sorts of uses for a self-employed loan, and each business is different. A guarantor self-employed loan could be just what you need to take your business to the next level or consolidate its debts.

Compare & apply for a self employed guarantor loan today

At Guarantor Loans, we understand the challenges that working for yourself can bring. We’re here to help you secure the finances you need with a self-employed loan. Specialising in guarantor loans means that we can help you get a loan, even if you have bad credit. To compare guarantor loans and find out what you can borrow, try out the tool on our home page.

If you’re ready to apply for a guarantor loan now, then we can help there too. Just apply through our site to get approved by one of our trusted lenders.