The 9-5 life isn’t for everyone.
Make your venture stand out with Self-employed Loans from LoanTube.
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:
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?
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:
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:
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.
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.
You can stay on track with your repayments more efficiently if you have a contingency plan in place in case of an emergency.
Calculate monthly payments
71.3% p.a (fixed)
Tell us how much you need, for how long, and for what purpose.
We find you the loan offers you qualify for from multiple lenders.
Select the loan that best matches your circumstances, and Get Funded.
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.
Here’s what you should consider before borrowing a self-employed long term loan:
You can borrow up to £35,000 over 3-7 years with LoanTube.
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.
The rate you are offered will depend on your individual circumstances.
Representative APR Example: On an assumed loan amount of £1,000.00 over 18 months. Rate of interest 71.3% per annum (fixed). Representative 99.89% APR. Total amount payable £1,655.10 of which £655.10 is interest. 18 monthly repayments of £91.95.
Our APR rate starts from 18.22%. The maximum APR we offer is 770%, but you will get a personalised rate tailored to you. The minimum repayment term is 3 months, the maximum repayment term is 7 years.
Warning: Late repayment can cause you serious money problems. For more information, go to moneyhelper.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.