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Can you use a self-employed loan to save a business?

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Owning your own business can be challenging. You may need funds to start your business, to expand, or even to pay off existing debts. Self-employed loans are generally a type of personal loan, so they can be used for a variety of things. If you need help paying off debts, or covering costs, a self-employed loan may be helpful. There are a variety of loans that fall under the self-employed category, from specialist loans to low doc loans.

If you’re self-employed and are wondering if you can use a self-employed loan to save a business, read on below to find out some of the options that are available to you.

What is a self-employed loan?

A self-employed personal loan is a personal loan for people who are sole-traders or run their own business. While there is no specific type of loan called a ‘self-employed loan’, there are several loan options available that are tailored to the self-employed.

In some cases, self-employed loans can require less documentation compared to a traditional loan. This can be helpful if you’re struggling to meet the required documentation during the application process. Generally, a self-employed loan may require you to provide tax returns and payslips to prove that you can meet the repayments of your loan.

How does a self-employed loan work?

Discussing development loans | Financial Information | Tiger Finance

A self-employed loan isn’t too different from a regular loan. While you may need to provide your tax returns and evidence of profit and loss, you may find that self-employed loans aren’t too different from a traditional loan. There are also many forms of loans that cater to the self-employed to choose from. Some options available to you could be:

  • Specialist loans – These are loans that are done through a specialist lender who provide loans for those who are self-employed. You may need a specialist due to your credit score, loan purpose, needing a loan after bankruptcy or not meeting the income verification requirements. Generally, if you’re a specialist borrower, you might be someone with a need for finance who cannot meet the criteria put forward by traditional lenders.
  • Secured or unsecured loans- Generally, these are personal loans that you repay over an agreed-to period. A secured loan is a loan guaranteed by an asset, for example, a car. Your lender would use this asset as security, which means that if you cannot make the agreed repayments your lender could take possession of the asset and sell it to cover the cost of the loan.
  • Low document loans Can be used if you’re having trouble providing the number of documents needed for another loan. Low doc loans can be taken out using less documentation than what is required for a traditional loan. Typically, low doc loans are for potential borrowers who are self-employed or small business owners and don’t have access to the number of documents normally needed when applying.

What can the loan be used for?

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As someone who is self-employed, there are many things that you could use the funding to help with. These may include:

  • Getting insurance for your business
  • Setting up a website
  • Finding a space and paying rent
  • Purchasing stock, vehicles or any equipment needed
  • Marketing and advertising costs
  • Obtaining any industry-specific licences or permits
  • Setting up phones, electricity and other utilities
  • Hiring staff, and paying salaries
  • Expanding and growing your business
  • Paying off outstanding costs

Where does Tiger Finance come in?

With Tiger Finance, we can help to get you a loan in four easy steps. You will have a free consultation with one of our specialists, and we will tailor-make you a loan. We will negotiate with lenders on your behalf before you are approved.

We have helped countless Australians with both good and bad credit ratings to get funding. We understand that lending criteria from other lenders are too strict and can stop you from achieving your goals. That is wrong, and it should not hold you back.

How we can help

Our finance specialists can help you find the right loan for your project. Getting a loan can be complicated, but we will find a loan that makes the process that much easier.

If you are one of the many Australians finding getting a loan difficult, Tiger Finance can make the process simple and pain-free. Call our loan specialists today for your free initial consultation. 

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