There is no denying that making a mark for oneself in the competitive
world of business is tough. This holds true especially for people
in UK who are self employed and dont have access to that extra
sum of money that can make the task easier. But the question
now arises: Where can they get that money from Well, in an
ideal scenario the answer to this question can be easily traced
with the introduction of self employed loans in the loan market.
If experts are to be believed self
employed loans are tailored to meet the financial needs
of self employed people. Fact remained that they may need funds
to expand or to start a new business. Theoretically speaking
self employed people are identified as people who operate their
own business as a sole owner or as a partner or a profession.
In addition independent consultants and contractors are also
classified as self employed.
It is worth mentioning in this regard that there are different
characteristics of self employed people that differentiate them
from the working group. As a matter of fact self-employed people
have unstable income as profits vary from one period to another.
In addition they do not have proof of their income.
Not so long ago, it was difficult for self employed people to
borrow money from the market. In simple terms the main reason
behind this is that they do not have a regular source of income;
this seemed to pose a big obstacle in the path of getting finance
But, believe it or not now time has changed. Point to be noted
in this regard is that with the entry of self employed loans
it has become easier for self employed people to get an easy
financial help. Furthermore it is worthwhile remembering that
with the increasing number of people who prefer to work for
themselves, self employed loans have now become affordable and
There is no denying that self
employed loans can be secured or unsecured one. According
to experts secured self employed loans are secured against the
collateral of the borrower such as a car or a house. On the
other side of the coin unsecured self employed loans are not
secured by any collateral, thus involve a high interest rate.
Fact remained that some lenders in UK offer flexibility to the
borrower by accepting overpayment, underpayment and payment
holidays. Let us illustrate these terms which will make it easier
for you to recognize the benefits of taking a self employed
loans. In an ideal scenario overpayment imply that a borrower
pay more money for a month than the amount due. While on the
other hand underpayment is just the opposite of overpayment,
it gives the borrower the freedom to pay a lesser amount in
a month then the amount due. Theoretically speaking payment
holiday is completely different from the two mentioned above.
In simple words it allows a borrower to skip a limited number
of monthly payments after an initial period of regular payments.
More often than not lenders of self
employed loans assess borrowers income to evaluate the
amount of risk involved in lending money to the borrowers. As
a matter of fact they assess the income of a loan applicant
basically by two ways:-
Self Certification It is worth mentioning in this regard
that in this case, a borrower self declare his income and the
lender do not insist on considering the audited accounts. But
fact remained that there are some lenders who will need a borrower
to submit an accountants certificate. According to experts
this is a document signed by a borrowers accountant that entail
that borrower has sufficient income to pay the monthly installments
and the loan. Believe it or not most of the lenders supplement
this information with evaluation of the credit score of the
Certified Accounts- Furthermore it is worthwhile remembering
that certified accounts of the borrower will be issued by the
borrowers accountant briefing the details of the borrowers
income on yearly basis.
Point to be noted in this regard is that lenders can arrange
self employed loans for homeowners or tenants for any amount
ranging from 3000 to 250,000. Furthermore it is worth pointing
that with the competition increasing day by day in the loan
market, lenders are ready to provide the loan at low interest
rate. In an ideal scenario interest rate is determined keeping
all these in consideration amount to be borrowed, borrowers
credit history and the loan term.
There is no denying that a good credit score will definitely
help a borrower to get a loan for a larger amount at low interest
rate. But, always remember that this loan is not confined to
good credit people only. On the other side of the coin bad credit,
CCJ or bankruptcy cannot stop you from getting this loan; however
you may get it at a bit higher rate of interest.
Theoretically speaking survival of the fittest is the trademark
used in the world of self employed people. But fact of the matter
is to survive one need to match pace with the changing technology
that is possible only when you have a financial backup. In simple
terms self employed loans give financial support to the self
employed people so that they too can make a mark in the competitive
world and reach new heights of success.
In an ideal scenario one of the most fundamental details that
all banks will look for in all loan applicants is a steady,
dependable income. Theoretically speaking the amount of this
income will decide how much the applicant will be granted. In
case if there were no dependable income, then on the face of
it, it would appear to a lenders calculation, that the loan
amount should be zero. According to experts this is the traditional
method of calculating personal loans. On the other hand business
loans are calculated on a different basis. As a matter of fact
they do not need to show guaranteed income.
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