LoanTube

Long Term Loans for Self Employed

The 9-5 life isn’t for everyone.
Make your venture stand out with Self-employed Loans from LoanTube.

Loans up to £35,000

Borrow for 3-7 years

Collateral-free loans for the self-employed

Long Term Self Employed Loans to flourish your business

What are self-employed loans? 

When you’re self-employed, getting a loan may be challenging. Many lenders refrain from lending to self-employed people because of the fluctuating nature of their income, which may affect their ability to repay the loan. 

You may have limited loan options due to strict lending criteria. Still, several lenders provide self-employed loans to freelancers and business owners seeking funds to bridge their financial gaps.

A self-employed loan is essentially an unsecured personal loan that you can borrow to meet your immediate and expected business needs or grow your venture without pledging your assets. With LoanTube, you can typically request self-employed loans of up to £35,000 and repay the loan in affordable monthly instalments over 3-7 years.

What loans can I apply for if I’m self-employed?

It is crucial to choose your loan options carefully when you’re self-employed, keeping your repayment ability in mind. Considering your short and long term financial circumstances, here are some secured and unsecured loan options that you can choose from:

  • Personal loans: An unsecured personal loan can help you break down the cost of your purchase over months in fixed, affordable monthly instalments without securing collateral. Personal loans enable you to borrow from £1,000 – £35,000 over 12-84 months. Some lenders may lend you higher amounts if you apply with a stellar credit report. To get competitive interest rates on unsecured personal loans, you will need a strong credit file, income proof, and employment stability. While you may be able to avail of credit with a below-par credit score, the loan you borrow might come with a high-interest rate.
  • Secured loans are suitable for borrowers who can put up assets as collateral. Home equity or property are the most common assets used as collateral. Now, suppose you fail to keep up with repayments. In that case, the lender may recover the money by repossessing and selling your property. Suppose you do not have a substantial employment history, documented income, or solid credit history. In that case, you might want to explore this option. Loans secured by collateral have lower interest rates than other credit products. Still, they pose a high risk to the borrower. Consider your options carefully before making your decision. 
  • Guarantor loans: A lender may require you to provide a guarantor if you have a below-average credit score. You can use guarantors if you have close friends or family members willing to help you meet your loan obligations – if you default on your loan repayments, the responsibility for paying the loan falls to your guarantor. To minimise the risk of default, lenders prefer guarantors who have a strong credit history and regular income. With a guarantor on your side, you have a better chance of being approved for a loan if you’re sure of your ability to repay the loan. Additionally, your guarantor should be fully aware of the risks associated with guarantor loans.
  • Business loans: Finance your urgent business expenses or stabilise your company’s financial health with a business loan. Lenders typically require you to provide details about your business accounts to qualify for a business loan.  

How do long-term self-employed loans work?

Long-term self-employed loans are essentially unsecured personal loans that you can borrow over a longer-term, usually above three years. Long-term loans tend to have smaller monthly instalments. However, since the loan term is long, you may end up accruing interest for a more extended period, increasing the overall cost of your loan. You may opt for a long-term loan if you’re looking for more affordable and flexible repayments. 

When you apply for a long-term loan, lenders assess your credit score and financial circumstances through a hard credit check. Credit scores give lenders an insight into your repayment ability, allowing them to evaluate their risk proposition. So, the higher your credit score, the lower will be the lender’s risk proposition, and resultantly, the lower will be the interest on your loan. Once you qualify the hard credit check and complete the contractual formalities, the lender will transfer the money directly into your bank account. You can then use the funds at your discretion, albeit responsibly. 

Long-term self-employed loans have severe repayment implications – a missed repayment could cost you up to 150 points off your credit score. If you miss payments consistently and default on the loan, the lender may get a County Court Judgment (CCJ) issued to you. A CCJ stays on your credit report for up to 6 years, impeding your chances of getting credit for your future goals. As long as you repay the loan responsibly, a long-term self-employed loan can help you boost your credit.

What documents do I need to apply for self-employed loans?

  • Identity proof: Driver’s licenses and passports are accepted as forms of identification. 
  • Residence proof: You can use your utility bill or council tax receipt as proof of residence.
  • Bank statement: Lenders use bank statements to verify earnings in your SA302 statement. 
  • Bank statements also give a general insight into your financial standing over some time.
  • Tax Returns (SA302): You likely file your tax returns yourself if you’re self-employed. You can download your SA301 from the HMRC website. The SA302 is widely accepted as proof of income for self-employed people.
  • Proof of rental income (if any): You must declare any rental income you receive from a property. Bank statements, a signed lease, and mortgage documents can come in handy to prove tenancy.
  • Details about your business: A lender will want to know about your company’s nature and status. Include any financial interest that someone has in the business if they are co-owners. 

For How long can I borrow long-term self-employed loans?

Depending on your requirements, you can typically borrow a long-term self-employed loan for 3-7 years. Suppose you apply with a stellar credit profile, reasonable business history and stable cash flow. In that case, some lenders may even lend you a sizeable loan amount for up to 10 years.

For what can I use long-term self-employed loans?

Here’s what you can use a long-term self-employed loan for:

  • Use it as working capital
  • To pay for stock and equipment
  • Cover website maintenance and marketing costs
  • Fuel business growth
  • To fulfil a contract
  • Pay for a one-off cost

What to consider before borrowing a long-term loan?

A self-employed loan can give your business a considerable boost to success. Still, you need to weigh the pros and cons before borrowing a loan carefully. Consider the following factors before taking out a loan:

  • Is this an appropriate loan amount for me? 

You must determine your ability to repay the loan before applying. Identify a suitable loan amount and avoid borrowing more than you can afford to repay.

Will I be able to commit to the loan term? Loans over a long period require more outstanding commitment. While long-term loans may have lower monthly payments, they may have a higher interest rate overall. Thus, you must evaluate your financial circumstances carefully to figure out the correct loan term.

  • What happens if I miss a repayment?

Failing to make a timely repayment can lower your credit score. By missing several payments, you run the risk of suffering a default, which could result in a County Court Judgment (CCJ) that may further tarnish your credit score. Thus, it is vital to keep up with your repayments on time to maintain your credit.

  • Do I need a contingency plan?

You can stay on track with your repayments more efficiently if you have a contingency plan in place in case of an emergency. 

How much can I borrow with a long term self-employed loan?

Crunching numbers was never this easy – check your affordability at the click of a button. Secure your future by making an informed financial decision.

Long-term self-employed loan calculator

What is the purpose of your loan ?
How much do you wish to borrow?
What repayment term would you like to choose ?

Representative Example

Loan Amount

£2,600

Loan Term

3 Years

Total repayment

£4,559.66

Monthly repayment

£126.66

RAPR

49.7%

Interest

41% p.a (fixed)

*The rate you get will depend on your individual, financial circumstances. Late repayment can cause you serious money problems. For more information, go to MONEYADVICESERVICE.ORG.UK.

Apply for a loan to Long Term Loan for the Self Employed

Step 1

Determine a suitable loan amount and term.

Step 2

Let us learn a few things about you.

Step 3

Compare real-time offers to find your ideal loan.

Why choose LoanTube?

You can’t put a price on happiness, but it doesn’t have to burn a hole in your pocket.

We've partnered with the best in the business

Offers from highly reputed FCA – certified lenders to help with your financial needs
Brand Name : Brand Short Description Type Here.
Brand Name : Brand Short Description Type Here.
Brand Name : Brand Short Description Type Here.
Brand Name : Brand Short Description Type Here.
Brand Name : Brand Short Description Type Here.
Brand Name : Brand Short Description Type Here.
Brand Name : Brand Short Description Type Here.
Brand Name : Brand Short Description Type Here.

FAQ'S

Are self-employed loans a more expensive option?

The cost of your self-employed loan depends on your credit score and affordability. As long as you apply for a loan with a stellar credit score and proof of stable income, you will likely get loan offers with lower interest rates. 

What to consider before borrowing self-employed long-term loans?

Here’s what you should consider before borrowing a self-employed long term loan:

  • Does your business have any existing debt obligations?
  • Will you be able to generate enough income to cover the loan’s repayments?
  • Can you show a steady income stream over at least the previous two years from being self-employed?
  • Are there any discrepancies in your credit score that need to be rectified? 
  • Have you done your due diligence while choosing your lender?
How to make a financial plan if I'm self-employed?
  • Take note of all your expenses: The average cost of starting a home-based business is less than £20,000. However, many other costs are involved in running a business, including (but not limited to) inventory management, equipment, servicing, contingencies, etc.
  • Understand your income flow: Independently employed people usually earn sporadic incomes. Estimate your monthly income fluctuation by calculating your average monthly income. You can put the extra money you make in a more profitable month than the average into a savings account to boost the less fortunate months.
  • Don’t rely on credit cards: Because credit card interest rates are so high, borrowing with a credit card can quickly become an expensive mistake. It is advisable to open a separate account to use your credit card for business purposes. If you are starting a company and need money, you may better take out a self-employed loan instead of using a credit card. 
  • Assess your taxes regularly:  Be sure to keep an eye on your tax returns throughout the year to avoid unexpected tax surprises. If possible, make quarterly tax payments to avoid tax penalties for over-withholding.
  • Stay on top of the paperwork: Your paperwork should be completed promptly, especially if you are billing your customers or clients. Many businesses take weeks to process invoices. For tax purposes, you should keep copies of receipts.
What is the maximum amount that I can borrow through LoanTube?

You can borrow up to £35,000 over 3-7 years with LoanTube. 

Does LoanTube charge an arrangement fee on self-employed long-term loans?

With LoanTube, you won’t have to worry about any upfront fees. Enjoy a transparent borrowing experience and find your ideal loan at the tap of a button.

Valued Customers With Valuable Feedback

Feedbacks from our happy users. Become one of them.
Pledge of Integrity

Pledge of Integrity

We do not sell your data, unsolicited, with any third party firms. Find your match with LoanTube without risking your data – Apply for home improvement loans with confidence.

Warning: Late repayment can cause you serious money problems. For more information, go to MONEYADVICESERVICE.ORG.UK

Credit subject to status & affordability assessment by Lenders.

LoanTube is a credit broker and not a lender.

Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on any debt secured against it.

By continuing to use our website, you agree to accept our cookies policy
X
Google