Golden Job

It's all about Job and Career!

If you answered yes to most, or all of those questions then self employment might be a good fit for you. Self employment can be scary because you won’t have the security of a regular paycheck coming in week to week and a lot of people worry that they won’t make enough money being self employed to cover their expenses. But when you’re self employed you can make a lot more money than you can working for someone else because all the money you make goes directly into your pocket instead of going to a corporation.

Still, when you leave the security of your job for home business self employment it’s a very smart idea to have enough money saved to cover at least a month’s worth of expenses. Two month’s worth is best, because then you will have the financial cushion that you need to feel safe and know that your bills will be covered. In order to really be successful at being self employed you need to be disciplined and you need to have direction with your business. After all, when you work at home or work for yourself there won’t be anyone telling you what time you need to start, or what time you can stop, or what needs to be done, or what calls need to be returned. You will need to do all of that yourself so it’s important that you are disciplined to make yourself work if you’re going to try a home business.

If you don’t have enough discipline to make yourself work without someone telling you to work then self employment might not be the best career choice for you. If you are not cut out for self employment then you should stay at your current job, because if it’s not a good fit for your personality type then you could fail miserably and burn through all your savings pretty fast. Self employment can be great for certain people. If you have always wanted to try a home business and you think you have the right temperament for it you should go for it. Take charge of your career and your life and go for it. Work for yourself!

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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 collateral to secure the loan.

Self certification (also know as self cert) loans are not easy to get and they often cost more than a typical loan. Self cert loans charge higher interest rates and can be very difficult for a person to get if they do not have a good credit rating.

That said, if you are self employed and have a less than perfect credit history, all is not lost. Because of the amount of people that encounter credit problems during their lives, the banks and lenders have had to relax their lending criteria in order to service this market.

There are also a number of specialist lenders emerging in order to target this niche area. So for these reasons if you are self employed and have a bad credit history then over the coming years it will be a lot easier to obtain finance.

In recent years, though, more and more people have started working for themselves. Due to this more and more lenders are open to the idea of self employed loans. The interest rates have also come down on them. The best way to get a self cert loan is to be prepared before meeting with the lender.

For a self employed loan a person should have:

- Tax returns for at least the past two years.

- Current accounting records.

- Proof of any additional income.

- Banking statements for past twelve months.

- Copy of business license.

- List of all assets, including bank accounts.

- Current debt information, including creditors names and contact information and mortgage statements.

- Proof of any child support or alimony paid out.

- For adverse or no credit, proof of some revolving credit account, such as rent or utility receipts.

Being prepared and having all of this documentation can be very helpful in securing a self employed loan. They may be hard to find, but with luck a self employed person should be able to find and obtain a loan just like they would if they had typical employment.