There are millions of self employed earners in the UK and more are starting up each week as with the recent leaps in work-anywhere technology, being self employed has never been more popular.
Self employment, whilst sometimes challenging, can be immensely rewarding too. There’s nothing quite like the satisfaction of a job well done and great client reviews. You will gain a great deal of pride from your own accomplishments and seeing how you’ve grown your business. Then there’s the flexibility of being your own boss and choosing your own schedule.
However, there’s also the paperwork that you are required to complete to show how your business is performing. That paperwork, or lack of it if you’ve not been self employed for long, can sometimes become a hurdle when it comes to demonstrating how far your business has come and how it can continue to support you. This becomes especially evident if you are looking to compare self employed car finance or other forms of borrowing.
Don’t despair or start longing for a 9-5 job, however. At Bright Loans, we make finding the right financial products quick and easy using our smart technology. There are many lenders tailoring finance solutions and self employed car finance comparison of those lenders and what they offer is something we can help you with.
You can compare self employed car finance against the other ways to purchase a car to decide the method best suited for you. You may prefer to pay cash outright if you have sufficient savings or take a basic bank loan, there are other options available too.
However. paying outright is something many cannot afford or they may not want to tie up a large portion of their savings to do. A bank loan from a High Street lender can frequently have rigid qualification criteria that are more geared toward those in receipt of a fixed PAYE income.
Historically, lenders have found it a challenge assessing self employed incomes and for many less progressive companies this is still the case. Income can fluctuate somewhat each month and without years of accounts, lenders can feel a self employed person’s income cannot be verified accurately enough. Self employment in itself should not prevent you from accessing finance however, even if your previous attempts at making a self employed car finance comparison haven’t yielded many results.
It can be daunting wondering if lenders will be too cautious to lend to a self employed person who has a less predictable income. It is easy to worry that you won’t be able to evidence your income in contrast with someone who is on PAYE.
As the number of people who are self employed has grown at the same time that the demand for credit facilities has increased, lenders are rapidly focusing in on this growing market sector and are becoming tuned into the needs of the self employed market. With a growing number of people wanting to compare self employed car finance online every day lenders are keen to help this expanding sector. However, they will still need you to meet certain criteria to balance the risks of lending just as they employ similar checks and balances to their other methods of lending.
There’s never a guarantee of being accepted for car finance but there are steps you can take to make yourself and your business appear as transparent as possible. Lenders want you to be truthful about the past and current performance of your business and your own credit to show you have a clear, realistic, grasp of your ability to repay what you have borrowed by being on top of your finances. These steps should help show that.
Keep your accounts up to date. With the day-to-day running of your business, this can fall by the wayside sometimes but online accounting apps have made this much easier than it used to be. If you’re unsure or don’t have the time to do this yourself then you can ask a registered accountant to do it for you.
Build a savings buffer. As a self employed person you’ve probably got into the habit of saving each month to cover your taxes and other annual payments but have you been saving to cover fluctuations in your income? 2020 changed many peoples’ business incomes temporarily and sometimes permanently, it was a drastic example of why you should build up a safety net of savings for the unexpected.
Check your credit score with a credit reference company such as Equifax or Experian. Is all the information accurate and up to date? Are there any forgotten debts in your name that need settling or credit you don’t recognise which could indicate you have been a victim of identity theft? Make sure you’re registered on the electoral roll as this helps verify your identity. You can show you can manage your existing credit by sticking to credit limits and paying bills on time.
As well as growing your business, see if you’re claiming all the allowances back that you’re entitled to so you keep more of your turnover. Is your household entitled to any top-up from the state to support working people too?
Make an informed self employed car finance comparison with our smart technology
When you want to start your self employed car finance comparison, our smart technology empowers you to make the right financial decisions on not just your car finance but all major loan products. We’re connected to the best deals 24/7 and our safe and secure website means your personal and financial data will always be protected.