Being self-employed comes with many perks. Fewer working restraints and greater control of your own money makes working flexible. However, when it comes to applying for financial support, it is a whole different story. Traditional lenders, such as banks often reject self-employed loan applications.
Banks require high amounts of documentation, including proof of tax returns and financial statements. Of course, being a business start-up or self-employed, it can be difficult to provide this information. So, what can you do if the banks say no?
ALC Commercial provide solutions in the form of Low Documentation Loans. As the name suggests, these come with far less paperwork and requirements. Low doc loans are a great opportunity if you are self-employed and don’t have the documentation to gain loan approval from banks.
With over 30 years of finance experience, our specialist team is trained to tailor self-employed loans to suit your needs. When you apply with us, it has no implication on your credit file, so you can apply with confidence.
You can certainly get a loan with ALC Commercial if you are self-employed. In fact, there are a number of different types of self-employed loans that you could qualify for, including:
Self-employed personal loans are also available for people with a bad credit history. ALC Commercial understands that your past is your past for a reason. We believe that bad credit shouldn’t hold you back from getting a self-employed loan. It is unlikely that you will be approved an unsecured self-employed loan if you have bad credit. A bad credit history along with minimal documentation makes the risk too great. However, if you have an asset to secure your debt against then it is certainly possible to get a self-employed loan with bad credit.
If you are a self-employed borrower who cannot provide the financial statements or supporting documentation required for a standard car loan approval, then a low doc car loan can be a perfect solution. A self-employed car loan provides you with the opportunity to get the vehicle you need, even when traditional lenders say no.
Just like with car loans, you can also get low doc home loans if you are self-employed. Generally, standard home loans are more affordable and have lower interest rates than low doc loans. Therefore, if you can, it is always best to try and get a standard home loan first.
Traditional lending institutions such as banks make finance approval decisions based on your credit report and a lot of documentation. The banks are risk-averse and extremely cautious when approving loans, in the event of a borrower being unable to service the loan. Because of this, those who are self-employed with less income proof are often excluded from finance options. Regardless of how reputable your business is, without the right documentation, you may find it impossible to get a loan from a bank if you work for yourself.
This is where private lenders come in to provide solutions that the banks can’t. If your business has limited documentation then non-bank lenders such as ALC Commercial can creatively structure terms to make self-employed loans possible in the form of low doc loans.
It is worth noting that interest rates may be higher for low-doc loans when compared to standard bank business loans. The reason for this is that without documentation to prove your income, there is a greater risk to lenders if you can’t pay the loan. This means that interest rates are increased to compensation for this risk.
There are a number of benefits to getting a self-employed loan with ALC Commercial as a pose to a bank including: