Being self-employed has a lot of benefits and perks. First and foremost is that you are your own boss, so you do not have to take orders or follow anyone that you cannot get along with. And because you are your own boss, one major perk of it is that you get to manage your own time. You do not have to clock in at 8:00 in the morning and clock out at 5:00 in the afternoon, or even much later if you have to do overtime work. That also means that you do not have to go through the rush hour traffic jams, or the heavy flow of commuters during rush hour. The best part about being self-employed is that you could actually venture in different kinds of industries and even follow your passion while you are at it. However, one setback in diving into different business ventures and professions is probably the lack of funding, especially if you have a lot of start-ups building up. Because of your credit score rating, it may be hard to apply for self-employed loans that could help you financially build your business. It may be hard, but it is not impossible.
Bad Credit Standing
When you are self-employed, you may have a hard time applying for loans or other financial aids because of your credit standing. It would most especially be harder to apply from financial institutions such as banks because of the different requirements and documents they would require from you to show as proof for your income and financial capacity. It may be a bit harder for you to procure those documents being self-employed, because you would not have a standard monthly income like employees with a fixed salary each month. More so if you are not able to regularly file your taxes, so you may come off as less reliable and unlikely to be given a loan to. If this is the case, you could actually apply for a loan with a guarantor to ease the process.
When you apply through a guarantor loan, you would be able to get a loan easily even if you have a bad credit standing. So even if you are self-employed, you would not have to go through the hassle of getting a lot of documents in hand before you apply for a loan. You could actually apply through a guarantor with a good credit standing to help expedite the process and make it easier for you. All you need is a guarantor with a good credit standing to apply with you when you get the loan. The loan would still be in your name, and you would still make the monthly repayments but what your guarantor will be responsible for is to make sure that the loan repayments are being paid for each month, most especially if you would be unable to pay for it for yourself. It is actually a win-win for you because if you religiously pay off your loan each month, it would also be an opportunity for you to raise your credit score rating.
When you apply for a self-employed loan together with a guarantor, you would be able to get as little as £1,000 and up to as much as £7,500. When you loan from £1,000 o £1,500, you have the option to pay if off from 12 months to 36 months with a total representative APR of 69.9%. For higher loan values of £2,000 to £2,500, you could spread out the payment from 24 months up to 60 months while maintaining the APR. You could have the same loan repayment period with higher valued loans of £3,000 up to £4,500 for a much lower representative APR of only 48.9%. While for larger amounts of up to £7,500, you can enjoy the lowest representative APR of 39.9% with a longer repayment period for values starting at £6,500, at a minimum of 48 months to pay back.
Maximising your Loan
When you apply and get approved for a self-employed loan, you are not forced to use it simply for a new business venture, or as added capital to your current business venture, or for a purchase of specific assets such as with a car loan where you can only use it to purchase a car for yourself. You could actually use your loan proceeds for personal uses such as renovating your home, or going on a trip, or simply paying off other debts and loans you have in your name. TFS Loans would not be strict when it comes to looking into where you spend your money, so as long as you would be able to pay off your monthly repayments on time and in full. After all, you do have a guarantor who would sign off to make sure that this will not happen, so everything is just all good.