Self-Employed? How To Overcome The Struggle To Get Approved For Finance

August 21, 2019

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Getting approved for a personal loan in New Zealand depends on one thing; proving a steady and stable income.

That’s because lenders need to be able to see that those they loan money to
have the means to meet their repayments.

You can’t lend someone money if you can’t reasonably expect them to pay it
back, right?

For most finance customers in New Zealand, proving their income is easy.
You simply provide a bank statement that shows regular income hitting your
account, tell your lender the details of your employment or income source, and
from there the finance company can assess your financial situation against
your loan application and (hopefully) approve your loan.

But, what if you don’t have a regular employment income?

What if — like many Kiwis — you make a living working for yourself and you
need access to finance.

In our experience, many hard-working self-employed people run into trouble
when they apply for a loan.

Because most lenders simply don’t want to do business with customers whose
income fluctuates and they can’t easily predict.

Maybe you’ve experienced this.

If so, we have some Good News For Self-Employed Kiwis Looking For Finance.

For many lenders, the words ‘self-employed’ are a red flag.

But in many cases, the reality is that working for yourself can be more
rewarding and profitable than working for someone else — even if it does
make your income more difficult to predict and forecast.

Here at Loanplace, we respect and admire those who are having a go at
running their own business and working for themselves.

And we reckon it’s not fair that those taking a risk and backing themselves like
that don’t get access to fair finance.

That’s why we want our customers to know that while it can be difficult obtaining
a personal loan as a self-employed person…

You may be able to access a loan if you can show that you will use the money to
develop or grow your business (and therefore potentially increase your
income).

For example, if you’re working for yourself or running a business, you may
need finance to:

  • Buy new stock or inventory
  • Invest in a marketing campaign to generate new business
  • Cover the cost of equipment repair or property maintenance
  • Hire extra staff to help boost your revenue
  • Plus five more ways to use a loan to help your business (speak with us about these today with zero obligation)

We May Be Able To Help You Finance Your Business Up To $150,000

Loanplace exists because our founders quit their old jobs, took a risk and went
out on their own to start their own business.

So we understand the challenges self-employed Kiwis face.

We think it’s important that you know — especially if you’ve already
experienced the disappointment of being turned down for a personal loan…

That while it might be difficult to get finance as a self-employed applicant…

In other cases you may be able to get approved because you’re self-
employed.

Of course, you do need to be able to demonstrate a good cash flow from your
work.

(We can help you do that here)

You may also be required to use assets like a vehicle or property to help
secure the loan.

But the point is, being self-employed doesn’t mean you can’t access finance.

Loanplace can help customers with a good cash flow and business plan
access loans up to the value of $150,000 (this of course depends on individual
circumstances and we can’t offer any guarantees). Find out more here.