Loan for Self-Employed with Bad Credit

Obtaining a loan can be challenging for self-employed individuals, particularly those with bad credit. Despite this, there are alternatives to traditional loans in BC, Canada that cater to self-employed with bad credit.

Some frequently asked questions include,

“Can I get a private loan with bad credit?” and

“What financial institutions offer the best mortgages for the self-employed?”

Regardless of job type or company size, self-employed individuals are concerned about proving their income to banks in order to borrow money. Without an employer to verify their earnings, self-employed people must provide more evidence of reliable income to qualify for various loan types, including personal loans, auto loans, mortgages, and credit cards.

So what options do self-employed people with bad credit have for securing loans?

When it comes to providing loans for self-employed with bad credit, lenders (especially traditional ones) will typically require the following documents:

1. Wage statements and tax returns for the previous two years to serve as legal proof of income.
2. Two or more years of certified accounts that account for all costs, expenses, and revenues to demonstrate income.
3. Evidence of upcoming contracts, projects, or collaborations.
4. Proof of any rental income.
5. Evidence of dividend payments or retained profits if the borrower owns a company.
6. Bank statements.
7. Proof of address.

Even if these documents are provided, a bad credit score may result in fewer lenders willing to offer loans. If a lender is found, the loan amount will likely be less than the requested amount, and the interest rates will be higher than standard loans.

A credit score matters because it contains important information, such as borrowing history, the number of accounts across banks (including credit cards), and credit history on past and ongoing loans. A good credit score assures lenders that the borrower is a responsible borrower with the ability to repay the loan.

If you are self-employed with bad credit and looking for financing in Surrey BC? A private mortgage might be the solution for you. Crown Funding can help. Call 778-320-9494 for a no-obligation consultation with our Loan Specialists.