Being self employed has many perks, however, securing a loan can be difficult. Lenders see a self employed person as a risk. That is because they do not have a guaranteed paycheck and their income often varies so much that it is hard to pinpoint exactly what their average income is.
Lenders use a persons average income to determine how much they can lend them or even if they can lend them anything. Additionally, the documentation of self employment income is often self kept records that can not be justly verified. All is not lost, though, as there are options for self employed loans.
As mentioned lenders will look at many factors to determine is a person is eligible for a loan. They need a certified record of income. Usually this would be pay stubs, but with a self employed person there are no pay stubs to use as a certified record. Instead the bank will want to see the accounting for the business or past years tax returns.
Another big factor with self employed loans is if they are secured or unsecured. Since self employed people are considered high risk a secured loan is probably the best choice. With a secured loan the self employed person puts up...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
