Being self employed certainly has its perks; unfortunately, borrowing money is not one of them! There are a host of lenders, however, who specifically do business with the self employed borrowers out …
Being self employed certainly has its perks; unfortunately, borrowing money is not one of them! There are a host of lenders, however, who specifically do business with the self employed borrowers out there, and you can be next by taking out a self employment loan. Many self employed individuals have found that a self employment loan can meet their needs for a variety of reasons and can be obtained in amounts from $5,000 up to $20,000 or more.
There are just as many reasons or often more reasons that a self employed person may need to borrow cash. Perhaps you need to purchase a car, take a family vacation, do home repairs or renovations, or pay educational expenses for yourself or your children. Maybe you are looking to expand your business, open a second location, or add more inventory to your small business. Whatever purposes you have for needing money, this type of loan product may be perfect for your needs.
Getting Your Loan When Self Employed
Most self employment loans are considered personal loans, but some may be considered business loans. With either type, you can either obtain a secured or unsecured loan. A secured loan for those who are self employed requires that you pledge security or collateral in order to qualify for funding. This security can be in the form of your home or other real estate property. By going with a secured loan for self employed individuals, you will be offered a lower rate of interest and a longer term of repayment with lower monthly payments.
Secured loans are the most common types of self employment loans. Unsecured loans are also available; however, be prepared to pay more for this loan when it comes to interest and to make bigger payments over a shorter number of years.
The unsecured loan gives you the advantage of not placing your property or home at risk if you should experience unforeseen financial difficulties on down the road that cause you to become late or past due on your loan payments.
Self Employed With Bad Credit? You Can Still Qualify For Funds
If you are self employed with bad credit, you may not qualify for the unsecured version of the self employment loan as many banks will not loan money out to someone with a derogatory credit file without some type of security. You can still qualify, however. Borrowers who are self employed with damaged credit should consider applying for this loan with a cosigner who has established a good credit history, such as a parent or other relative. The cosigner simply agrees to make your payments if you fail to do so for any reason.
Online Solutions For Self Employed Borrowers
Finding the best loans for the self employed may be easiest if you use an online lender for your borrowing needs. Lenders who do business over the Internet can typically approve a greater number of applicants for the loan money that they need because they have more working capital and are often willing to absorb greater instances of risk than a traditional lending institution, bank, or credit union will. Your online application for a loan for the self employed can be processed in a very short period of time, which means that you can get your money fast. Applying online is easy and convenient, and you can access your application twenty four hours a day, seven days a week when you go this route.
Article Tags: Self Employment Loan, Self Employed, Self Employment, Employment Loan