Who Qualifies for a Self Employment Loan?
Jobs at Home May be More Stable Than They Appear
Sep 30, 2008
Who qualifies for a self employment loan? Do self employment loans exist? Now that jobs at home are starting to pay steadily, now that the end-of-the-month fear is starting to fade every thirty days, it might be time to consider moving forward. Successful professionals are expected to buy homes, newer cars, nicer furniture, better vacations…so self employed professionals shouldn’t be any different, right?
Obtaining a self employment loan, however, can be extremely difficult even for the most successfully self employed out there. Jobs at home may be more stable than they appear…but just try explaining that to a bank.
Jobs at Home
Work-at-home-Barb is a true professional. She maintains a regular schedule, turns in quality work and has started to build quite a reputation as someone who gets the task done well. Work-at-home-Barb is building up her savings, receiving regular income (mostly through PayPal) and feels confident in her career choices. So, she goes to her bank to apply for a home loan.
Barb gets stopped cold. She moves on to another bank, then to another. Barb has good credit, steady income and a functioning savings account. But Barb is still undesirable in many ways to bankers.
Sound a little unbelievable…or does it sound like self employment? Despite the growing popularity (and recognition) of self employment, many work at home professionals still find themselves being treated like second-class citizens by lending institutions. For those who maintain jobs at home, getting a self employment loan is going to take a little extra work.
Self Employment Loans
Banks, credit unions and other lenders are not completely out of reach even for self employed professionals. Most banks don’t shy away from jobs at home per se, they just fear the instability of such a career. Those who work at home must provide lengthy and conclusive documentation to prove that they, too, enjoy regular, steady income. Back it up with paperwork to increase the chances of obtaining that bank loan.
Achieving these traditional loans will require a bit of extra hoop-jumping and paper-shuffling, which turns many work at home professionals off. Search instead for a self employment loan, specifically designed for professionals with businesses and jobs at home. Companies and programs such as LoanWeb and SELP are out there just for the self employed and professionals who work at home.
Who qualifies for self employment loans? In many cases, most self employment loans require tax returns which show steady income and prove that the professional in question is, in fact, self employed.
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