Loans for Self Employed
The majority of new job growth in the United States comes from the self employed or small business owned by an individual. While this group should be hailed for keeping the economy healthy loans for self employed can be very difficult. The concept of the paycheck has brought a false sense of security to many large industries. They believe because you get a paycheck you will continue to get an equal or greater check in the future. With the current recession we can all see this isn’t as true as we thought it was. The real security comes in providing true value to people so they want to pay you day in and day out. If you own your own business and need a loan for self employed, be prepared to tell this story to many lenders until one listens.
Payday Loans for Self Employed
This will likely be the easiest loan for self employed to acquire. This industry understands risky investments and loves to loan to quality business owners that the banks won’t look at. Just bring your last year’s tax return. This will be enough evidence for any payday lender.
Unsecured Loans for Self Employed
The next most difficult loan for the self employed is the unsecured or personal loan. Here you need to be prepared to show proper financial reports prepared by a professional accountant. The banks will definitely want to see a properly prepared profit and loss statements, balance sheet, and cash flow statement. This will make them a bit more comfortable loaning to you. Though if the loan isn’t going to your business the lender still may be nervous about loaning to you. Though if you simply pay yourself a wage out of some of your profits by running your company as an S-Corp you can simply show them a W2 and then the big banks will be happy and pennies will rain on you from heaven. OK, maybe not that easy, but you will be much more likely to get your loan.
Home Loans for Self Employed
Even as lending as eased up since the housing bubble popped, the self employed still struggle to get loans. Your best hope to get the loan is through the Federal Housing Authority (FHA) because they have loan programs specifically designed to guarantee the loan of a small business owner for her house. If you’re going through the FHA you need to remember that this is a federal agency. You best have your taxes in order because any application you send in will likely find its way across an Internal Revenue Serviceman’s desk. If you get audited because you haven’t been paying your taxes you won’t have to worry about home loans for self employed because you won’t have any money left.
In general you just need to be more prepared than the average individual when getting a loan. However, since you’ve already taken on the task of running your own company you are positioned to reap the long term rewards.