Getting a Bad Credit Loan When You’re Self Employed
Self-employed people or entrepreneurs usually have a tough time getting a loan. This happens because they don’t have all the necessary paperwork to attest that they have the finances to repay the loan. Not being able to prove that you have a steady income will make you realise that getting a loan approved is almost impossible.
Fortunately, there’s a solution! Bad credit business loans for self-employed people do exist and are designed to help the ones in need, just like you!
How Do Bad Credit Loans for Self-Employed People Work?
- They don’t require all documents
A standard loan relies on a file that contains all your financial statements, tax returns, proof of income and so on. If you’re self-employed, the chances are that you don’t have a steady income yet. Furthermore, if you’ve just started a business, you’ll also lack the necessary documentation.
Bad credit loans for self-employed people offer you a hand when plans aren’t going as they should. If you require money for a piece of equipment, for example, then these types of loans will help you out when banks say “No”.
- You can apply online
The application process is less stressful, and you can choose to apply online. Search on the Internet for bad credit loans and start to compare offers from different lenders.
The criteria for eligibility are less strict as compared to standard loans. So, as long as you’re over 18 and an Australian resident, you could receive anywhere between $500 and $5,000. Some lenders are willing to give you a loan even if you’re not employed, so take your time and consult the market in order to find the best option for you.
- The review process takes up to 48 hours
Lenders are aware that bad credit business loans for self-employed people are essential for sustaining a business or making monthly payments. Moreover, being self-employed means that your income can vary drastically from month to month. That’s why bad credit loans have a short approval time.
It can take between 2 hours and 48 hours to get a loan approved. The time differs from lender to lender, so rest assured that even if you’re pressured by time, you could receive the money by the end of the day.
- Bad credit loans will help you out even when your credit score is down
As the name says, bad credit business loans will be approved even if you have a bad credit score. We all know that maintaining an excellent credit rating is quite difficult. An unexpected expense or bankruptcy can lower your score in no time. That’s why these loans have been invented.
However, keep in mind that bad credit loans will come with slightly higher fees. Also, anything above $2,001 will come with a higher interest rate.
Indeed, bad credit loans for self-employed people have some disadvantages, such as bigger rates and extra costs. Still, they are of great help when the times get rough!