Secured loans self employed - Advice, secured loans, information and guides from secured loan brokers. If you are self-employed, finding a secured loan can be more difficult. Find advice, information and guides on secured loans for the self employed, discharged bankrupts, IVA secured loans, secured loans with CCJ's, information on poor credit and bad credit secured loans, advice on secured loan arrears, guides on self employed secured loans, secured loans with county court judgements and solutions for poor credit secured loans through specialist secured loan brokers.

A self-employed individual is a person who runs their own business and works for themselves without an employer.

A self-employed worker will usually find it harder to prove what they earn than someone who is a PAYE employee of another person or company. This inability to prove income can be a problem for many secured loan lenders, as they like to have clear proof of a person's earnings before they will agree to provide a secured loan.

So, for people who are self-employed, or who have a variable or seasonal income, or who are working on a contract basis, it will usually be harder to get a secured loan than it is for someone who is a PAYE employee and who can easily prove their income.

Directors of small owner-run limited companies, although technically employed on a PAYE basis by their own company, will generally be classified by secured loan lenders as self employed when it comes to applying for a secured loan.

This is despite the fact that a large number of company directors and self-employed workers often earn more than many employed people.

There are over three million self-employed workers in the UK. So the secured loan lenders' lack of flexibility is a problem that affects a lot of people.

It is fairly simple for workers who are employees to prove their income to a secured loan lender. Employed workers can use their payslips and/or their end of year P60 as proof of salary. But for self-employed secured loan borrowers, there is no such simple equivalent to payslips and P60s.

Instead of monthly or weekly payslips, self-employed secured loan applicants may be asked to show the lender audited business accounts to prove what their income has been in recent times - typically over the last three years. However, in many cases, these accounts will not give an accurate reflection of how much money a self-employed person is making. This is because if the book-keeper or accountant who drew up the accounts is doing his or her job properly, they will have tried to offset as many tax-deductable expenses as possible against the profits of the business. This has the effect of reducing the net profit - and it is this net profit figure from the accounts which the secured loan lender will use when calculating the size of secured loan they are prepared to offer to the self-employed borrower.

The situation is even worse for a self-employed person who has only been self-employed for a little while, as they may not have been in working for themself for long enough to have had three years' worth of accounts prepared.

Luckily, there are a growing number of secured loan lenders who specialise in secured loans for self-employed people. These secured loan lenders appreciate the different and varied working patterns of self-employed secured loan applicants, contract workers, and people whose income is variable or comes from multiple sources.

Lenders who deal with self employed secured loans will assess each secured loan applicant's case individually rather than just applying a series of one-size-fits-all income tests.

If you think a self-employed secured loan may be the way forward for you, please fill in our enquiry form and we will arrange for a secured loan consultant to contact you - someone who specialises in helping find secured loans for the self-employed.