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As freeing and fulfilling as self-employment may be, being your own boss comes with a few drawbacks. Taxes are suddenly more complicated, you need to feed your own superannuation, and applying for Self Employed Loans is much more of a hassle.
Nevertheless, it’s quite possible to get the loan you need as a self-employed person – it just takes some careful planning and an understanding lender. Read on to learn how you can get a loan as a self-employed borrower.
Find the right lender. Lodging an application with a flexible, responsible lender is the key to moving forward in the loan application process for Self Employed Loans. Before you begin the process, make sure that the lender you have in mind will consider a self-employed borrower, as some companies have policies against loaning to freelancers. There’s no reason to waste your time trying to convince someone you can repay the loan when they’ll rule you out from the start.
Register yourself with an ABN. If you’ve been self-employed for some time, you’ve likely registered for an Australian Business Number already, but if not, make sure you do so before you consider applying for a loan. This is crucial for proving you’re a legitimate sole trader and acts as a replacement for not having a traditional employer.
Be in business for one year or longer. Once you have the ABN set up, make sure you’re self-employed for at least one year. Doing so will give the lender necessary business history to evaluate, and helps you predict your income for the period in which you’ll be repaying your loan.
Keep track of your tax return records. The lender needs to see how much you’ve been making through self-employment and proof that you’ve been paying your taxes. The more organised you are, the easier it will be for the lender to trust in your reliability.
Be prepared to offer up your bank statements. You’ll likely be asked to give the lender three months of bank statements for personal and business accounts. Not only will this show the lender that you can manage your finances, it will also give them insight as to the rate in which you can realistically repay the loan.
If you’re a self-employed person in need of a personal or business loan, Speedy Finance is the responsible lender you’re looking for. Our caring, knowledgeable team will work with you each step of the way to ensure you receive a cash loan at a rate you can easily manage. No matter your financial situation, don’t hesitate to reach out to us with any questions you may have.