It is not necessarily more difficult, but you will face some different application requirements. Lenders tend to view loans for self-employed loans as being high risk.
Running your own business, you may not have the luxury of a stable, regular income like an employee does. Your income may fluctuate instead.
The main concern of a lender when assessing any finance application is that the borrower will make their repayments. As a self-employed person, you need to find appropriate documentation to demonstrate that is possible. You can’t just show your regular payslips from your employer as employees can.
What documentation do you need to apply for a personal loan for self-employed people?
At Professional Lending Solutions, You need to provide as much evidence of your income and your ability to repay the loan as possible. This should include your most recent:
- tax returns.
- financial statements for your business.
Providing this information for the past two or three financial years will help the lender assess your application. Depending on their lending policy, finance brokers gold coast may take an average of the income you’ve earned over that period. They may even take a conservative approach and use the lowest figure.
Your business financial statements should include your income statement, balance sheet, and business activity statements (BAS). Ideally, these statements should have been prepared by an accountant.
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