Being self employed allows you freedom most people will never know. Being your own boss, plotting your own course through the waters of finance, can be exhilarating. But also terrifying. Because when you are self employed loans and financial assistance can be hard to come by.
More and more people want to be their own boss. And living in the age of technology has been a huge boon to these forward-thinking individuals. But banks and credit unions have not caught up with them yet. And so for professional consultants, freelancers, and the self employed loans are still difficult to obtain.
The Documentation You Need for Self Employed Loans
When applying for a loan, banks require a great deal of documentation. When you work for a major company or corporation, these documents are fairly east to come by. You can simply produce copies of pay stubs from your employer. The exact paperwork needed varies by lender, of course. But one thing is true for all lenders –
When you are your own employer, everything gets a little more tricky.
In these cases, many lenders require a great deal MORE documentation before they will approve self employed loans. They may require bank statements, tax returns, or canceled checks to verify your status.
For someone like a freelance writer, an artist who paints on commission, or a roadside vendor selling hand crafted items, this can be a major obstacle. It can require up to two years worth of documentation of income!
Why are Self Employed Loans So Hard to Find?
Most lenders don’t want to take a gamble. And when they see that a person is investing in themselves instead of a major company, it makes them gunshy.
And let’s be honest here, it is a gamble to go into business for yourself. It always has been. That’s part of what makes self employment so rewarding, is banking on yourself. There are few things in the world more rewarding than betting on yourself and winning!
But banks and credit unions aren’t in the business of taking risks. They like a sure thing. So when you are self employed loans require a lot more physical proof that you are a viable business.
Here at National Small Loan we are eager to work with everyone. If you have a steady income, contact us today for your small loan needs.