Unsecured Loans for Self Employed: Make a Head Start

By: Gilbert Imlay

Self employed business is the best business in the world but making funds available for this type of business is a Herculean task. Self employed people don't have access to the readily available funds in the market. Self employed people are referred to those who operate their business on their own or in partnership. Unsecured loans for self employed are tailored to meet their financial requirements. These loans help in starting a new business or to generate the already existing one. These loans are not pledged against any collateral or high valued asset and therefore involve high rate of interest. Contractors and independent consultants are also classified as self employed people.

Since the profits vary from one period to another they have unstable income and no income proof. This seemed to be a great obstacle in the path of taking financial help. But with changing scenario, self employed people are able to get access to instant financial aid. Unsecured loans for self employed have now become affordable and easy to get. Some lenders provide flexibility to their customers by accepting overpayment, underpayment and payment holidays. Overpayment implies that a borrower pays more money for a month than the amount due. Underpayment gives the borrower the freedom to pay a lesser amount in a month then the amount due. Meanwhile payment holiday allows a borrower to skip a limited number of monthly payments after an initial period of regular payments. With the help of self employed loans, a borrower can avail a good amount of money ranging from ?3,000 to ?250,000.

Lenders assess the customer's repaying ability via two ways- self certification and certified accounts. In the first case, the borrower declares his income on self basis and he need not show the audited results to the lender. But some lenders provide their lending facility only when the borrower submits an accountant's certificate. It is a document which is signed by borrower's accountant that makes sure that the borrower has ample income to pay the monthly installments and the loan amount. This is a type of evaluation of credit score of the borrower. A good credit score definitely helps the borrower to get a loan for a larger amount at low interest rate. Certified accounts are issued by the borrower's accountant briefing the details of the borrower's income on yearly basis so as to provide unsecured loan for self employed people.

To survive in an ever changing world one needs to out himself shoulder to shoulder and keep abreast of changing technology which is possible only when one has financial support.Unsecured loans for self employed give financial back up to the self employed so that they can make a position in their requisite field. Bad credit holders even get a chance to improve their credit score also. Many lenders may still treat the self-employed as a greater risk than traditionally employed because new business fail more often than more established businesses. Unsecured loans for self employed are suitable for people having their own business and in need of finance.

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