Being self-employed can be a great way to work - being your own boss and working when and how you want is an appealing idea. However, when it comes to getting loans, it can be that bit trickier for self-employed people to borrow.
This is because mainstream lenders can see the income of freelancers and people starting new businesses as more unstable than those in normal full time employment. But we don’t think this is fair, which is why at Amigo, we offer loans for self-employed people regardless of their credit rating. Instead, we ask our customers to provide a guarantor, who promises to make the loan repayments if they do not.
Setting up and running your own business is not cheap. You will need to make investments in many different areas, including suppliers to help bring your business ideas to life, insurance, advertising, not to mention a website, which is often a must-have for small businesses.
If you’re self-employed, a loan can help cover the costs of running a business, but it isn’t always easy to get one. High-street lenders have strict guidelines when it comes to applicants who are self-employed and might ask you to show two or three years’ worth of tax statements or company accounts, signed by an accountant. This won’t always be possible, and if you have a poor credit history, it makes things even trickier.
This is where guarantor loans for self-employed people come in. Because we ask that each customer provides a guarantor, who is someone who agrees to make the payments if you do not, we don’t mind what your past or current financial situation is, even if your credit score is very low, provided that you are age 18-75; not currently bankrupt, on an IVA (or similar), and the loan repayments are affordable for you.
At Amigo, our team make a common sense decision on your application. We believe in old fashioned values like trust and relationships, so if your guarantor trusts you, so do we. Your guarantor simply must be 18-75 and have a strong credit history. Although they do not have to own their own home, they are much more likely to be accepted if they do.
If you aren’t sure how to get a business loan with bad credit, personal guarantor loans are a great option. This is because, unlike mainstream business loans, the financial status of you and your business does not have an impact on the likelihood of you getting a loan because we base our lending decision on common sense and trust. We simply ask you to have a guarantor who will agree to make the repayments if you do not.
Your guarantor could be a close friend, colleague or a responsible relative: basically anybody who trusts you who has a good credit history and is aged between 18-75.
A guarantor loan can also be a great way to borrow the money you need to expand your business or to cover unexpected costs such as a surprising bill you hadn’t budgeted for, a loss of stock, or emergency repairs to your premises or equipment.