Secured Loans for Self Employed with No Accounts

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Are you self-employed and looking to get a secured loan, but you have no accounts? You’re at the right place. Each month, over 6,900 people visit this site to learn about secured loans.

In this easy-to-understand guide, we’ll explain:

What a secured loan is and how it works.
The true cost of a bad secured loan.
How you, as a self-employed person, can apply for a secured loan.
What documents you need when applying.
How to use your secured self-employed loan to sort out other debts.

Secured loans for self-employed people with no accounts are possible, but you need to be ready and know what the lender wants. It may feel hard but don’t worry; we are here to help with clear and simple advice.

Let’s learn together about secured loans for the self-employed with no accounts.

How do I apply for a Secured Self-Employed Loan?

The initial procedure you need to follow when you’re applying for a secured self-employed loan is pretty much the same as it would be for any other loan.

Here’s what you need to before applying for a secured self-employed loan:

Gather all documents pertaining to your finances. As a self-employed individual, it’s essential for you to have documents related to your financial affairs at hand as these will be needed by the lender to assess your eligibility for the loan.
Check your eligibility for different secured loans. There are many lenders now which offer you the ability to assess your eligibility for their loans before you even apply to them. It’s a good idea to assess yourself in this way before applying for a loan to a certain lender as it can save you time and effort.
Compare different secured loans. It’s always a good idea to compare all the options you have to ensure you’re getting the best possible loan that suits your needs and budget.

Do Lenders even Offer Loans to Self-Employed People?

Yes. You can definitely find lenders that give out loans to self-employed individuals. However, you may find that your options may be a little more limited.

With a little research, you’ll most likely find lenders who will approve your secured loan as long as you have a satisfactory credit history, you can satisfy the lender’s requirements for payment and you provide the documents that he/she asks for.

It’s actually much easier to get approved for a secured loan if you’re self-employed than it is for an unsecured loan if you’re self-employed.

This is simply because of the collateral that is involved as security for the creditor in a secured loan.

Change the amount you are looking to borrow to see what offer you could get

I want to borrow

Over how long?

Lender	APRC	Monthly payment	Total amount repayable
United Trust Bank Ltd	5.69%	£218.21	£26,185.42
Equifinance	6.2%	£219.10	£26,291.67
Selina	6.34%	£219.34	£26,320.83
Pepper Money	6.86%	£220.24	£26,429.17
Together	7.4%	£221.18	£26,541.67
Norton	9.05%	£224.05	£26,885.42
Masthaven	9.65%	£225.09	£27,010.42
Loan Logics	11.2%	£227.78	£27,333.33
Evolution	11.28%	£227.92	£27,350.00

Representative example: If you borrow £34,000 over 15 years at a rate of 8.26% variable, you will pay 180 instalments of £370.70 per month and a total amount payable of £66,726.00. This includes the net loan, interest of £28,531.00, a broker fee of £3,400 and a lender fee of £795. The overall cost for comparison is 10.8% APRC variable. Typical 10.8% APRC variable.

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Are Loans for Self-Employed Individuals More Costly?

If you have a good credit history, can provide all the documents that the lender asks for, fulfil all of their eligibility requirements and can satisfactorily afford the repayment plan, then there’s no reason for it to cost more than any other regular personal loan you may have.

What Documents Do I Need to have on Hand when Applying for a Self-Employed Loan?

Different lenders can have different requirements for documents they need to assess your eligibility.

However, some of the documents should absolutely always have on hand when applying to lenders authorised and regulated by the Financial Conduct Authority, are the following:

Proof of Identification: This can be any document that proves you are who you say you are. A driver’s licence or a passport can suffice for this.
Proof of address/residence: This is to prove you live where you say you live. Typically, a copy of your recent council tax bill or a copy of a recent utility bill is enough to act as a proof of address.
Tax returns (SA302): Self-employed people are required to self-file and submit their tax returns. This is something that most, if not all, lenders will ask you for. You need to be able to submit copies of your SA302 calculation for at least the last two years. This will help to prove the income you have stated as part of your loan application. You can get a copy of your SA302 calculations by logging into your HMRC online account.
Bank statements: These will most likely be requested by your lender as proof of income so that they can cross-check your earnings with your SA302 calculation. It is also needed by the vendor to get a sense of your financial situation as well as your monthly expenditures.
Proof of rental income (if any): This needs to be declared when applying for a loan and you also need to provide evidence for it. This could be in the form of copies of bank statements, mortgage or lease/tenancy agreements.
Company/business details: This could be any documents that detail the status of your business (sole trader, partnership, limited company, etc.) If there are other individuals that have a financial interest or stake in your business, you need to declare this as well.

Is it Possible to Get Approved for a Secured Self-Employed Loan with Bad Credit?

While it’s not difficult to find loans for self-employed individuals with bad credit, you may find you’ll have a harder time getting approved for them.

You may also find that these loans may be for a lower amount than what you need or they may be at a much higher interest rate than loans that are offered to individuals with a good credit score.

That being said, when you’re looking for a lender, you should always ensure that they are regulated by the Financial Conduct Authority. You don’t want to get caught up with a loan shark who is operating illegally.

They could charge you very high-interest rates and may even threaten you with physical violence if you can’t pay it back.

Can I Use My Secured Self-Employed Loan for Debt Consolidation?

While this is something that you can do, you have to be very cautious about it.

It’s true that debt consolidation loans can make life easier for you by merging all of your debt so you’re answerable to only one creditor. It’s also true that secured loans offer lower interest rates so your repayments could even effectively be shrunk if you opt to do this.

However, you must also keep in mind that you will be required to put up a valuable asset of yours as collateral for this loan.

This may not have been the case with the multiple debts you had before.

Thus, you should only opt for this if you know for sure that you can reliably pay back the debt because if you default on it, then you could lose whatever asset you had put up as collateral.

It’s always wise to seek professional advice before jumping into a decision like this. There are lots of charities in the UK, like StepChange who might be able to guide you.