UK Unsecured Loans for Bad Credit

Self employed loans

Self employed loans applications are treated differently to employed loans applications. This is because there are a number of differences in your income. Self employed people tend to have more income than an employed person but their income is more erratic, getting lump sums every now and again rather than the same amount on the same day each month. You might have problems proving your income if you don’t have accounts, whereas employees don’t need accounts to prove their income. If you are self employed and have accounts perhaps you don’t declare all of your income for tax purposes. Employed people are taxed at source.

These subtle differences can make a big difference to a self employed loans application. If you are a self employed person without accounts, for example, many high street lenders will refuse you a loan. With lenders who specialise in self employed loans you can often self certify or make a declaration about your income if you are unable to provide accounts.

Are you looking for self employed loans for people who have bad credit? A self employed person can be even more susceptible to bad credit than an employed person because it can be difficult to balance cash flow; for example, you may be a sole trader who has to postpone paying a personal credit card bill whilst waiting to be paid for a job. This can mean that you have missed payments on your credit profile or even registered defaults.