Being self-employed brings oodles of freedom to work and manage time. You become your own boss and you get ample freedom to work from home and seek work life balance. However, the convenience of flexible work schedules challenges your credit drawing potential.
Many lenders are likely to reject your loan application owing to your risky profile. The income of self employed people is considered unstable and they are looked upon as risky borrowers. The loans would come unabatedly at a very high cost. From freelancers, to contractors, to sole trader or those who run small businesses, fall under “self-employed” category.
Whether you have accumulated loans and credit cards, in order to borrow a long term loan you would need a loan broker’s advice. There are several private lenders online who deal with bad credit borrowers. The broker can help you search the required deals from reliable lenders at the best possible price.
Why use debt consolidation loan?
When you are struggling to keep track of your monthly repayments owing to multiple high cost loans and credit bills, consolidating debts helps you reduce the burden of debt. All of your outstanding accounts are converted into a single loan account. The instalment burden is reduced too. Herein it is important to note that you would end up paying more on interest as loan duration is raised.
Being self employed why you find it difficult to borrow?
Every time a lender agrees to extend a loan your way, they would want to ensure that you could afford the repayments. They would seek income proof. Depending on the length and size of loan they may ask for 6 months to two years of income proof. You may be required to submit bank statement or balance sheets to establish the same.
However most of the self employed people have varied customer orders and their monthly income might not be stable. In such a scenario you are considered as less worthy for loan.
How to find long term loan as self employed?
If you can afford the loan, you would first need to establish your repayment capacity. A broker can greatly help you prove your credit worth to lenders. If you do not have a stable monthly inflow of income but have decent earnings annually the broker may help you avail loan on the basis of your annual income itself.
Thus you would need to contact a proficient broker to avail a self employed loan. You can fill an online form and seek customised credit help from brokers. From long term debt consolidation loan to personal loan, to homeowner loan, a broker can help you avail the required loan without any hassles.
All in all, being self employed you get ample flexibility to work. However lenders consider you less worthy for financial help as they fear the unstable nature of your work. Herein using a broking service you can pick and choose a reliable deal with the least hassles.