We live in the age of entrepreneurship. People are massively quitting their 9 to 5 jobs and choosing to pursue their business projects. Many of them fail miserably, but some succeed and make multi-million dollar empires. We all know that the eligibility for many different loans depends on our employment status and monthly salary. In the first years of business development, most entrepreneurs are not eligible to take personal loans. They can opt for equipment loans and other lines of credit that can be used for boosting their business.
Being an entrepreneur doesn’t mean that you’re ready to sacrifice your personal life for the benefit of your business. That’s why banks and credit companies started providing self-employment loans to entrepreneurs. In this article, we will discuss why opting for a self-employment loan is a good move.
The large increase in the number of entrepreneurs who are interested in self-employment loans has drastically simplified the application process. In some companies, you will be able to take the loan in only 48 hours. You just need to provide the bank or the loan company with your latest tax returns and your personal and business financial and banking statements.
For self-employment loans, you are not required to provide your company’s business plan or any other documentation apart from the most basic financial and tax statements. Still, you can invest this money in the development of your business if you lack other funds. As an entrepreneur sometimes you need to react fast and a self-employment loan can be very helpful when you are not eligible for various business loans.
Your family and social life won’t stop just because you have decided to start a business. Self-employed people need mortgages like everyone else, and the only way for them to purchase a home would involve taking a self-employed loan. Mortgage companies don’t have prejudices when it comes to entrepreneurship and self-employment. They will ask you for your business tax return so they can verify your earnings. In most cases, you will receive similar mortgage conditions as employed individuals who earn a similar amount of money.
Until recently, the low doc loans were the most popular loan options for the self-employed individuals. These loans are much less attractive, and the come with higher interests and fees and strict limits. Most low doc loan applicants opt for these loan options because they only need to provide accountant’s declaration and business activity and trading statements. Today, when even the small business entrepreneurs are eligible for self-employment loans, low doc loans’ popularity is quickly decreasing. Self-employment loans give you much more favorable conditions.
Good mortgage brokers are skillful at navigating lenders and requirements and finding the best offer on the market. So, if you're in need of a quick financial boost, you can get a quick loan from NSW Mortgage Corp, or some other mortgage company that has been in this business for a long time. Many of your company’s costs can be presented to lenders in such a way they will be ready to accept them as non-recurrent and not ongoing.
Freelance and entrepreneurship market is growing at a very fast pace. These trends will create more attractive self-employment loan options in the future because banks and credit unions will need to cater their offer to people who are choosing to leave their 9 to 5 jobs and replace them with more independent and prosperous freelance work engagements. This means that in several years, the self-employment loans will offer equal conditions as the most attractive personal loan offers.
If you also plan to start an entrepreneurship career, these loans will help you to get appropriate funding for your business and for all other requirements you have. As we have said earlier, the self-employment loans are the loans of the future. They allow a growing number of entrepreneurs and freelancers to buy new homes, cars and fully enjoy their independent status. The way that mortgage industry is adapting to the new job market allows us to see that freelance work and entrepreneurship is not a current trend, but a thorough change that will affect business in all industries. Soon, entrepreneurship will be the most preferred career path and all commercial products will be adapted to the needs and wishes of self-employed professionals.