The perpetual growth of self-employment is one of the notable trends in the labour market of the United Kingdom. There are 4.8 million self-employed workers who form 15.1% of the total labour force. Given the current economic climate of the country where unemployment is touching record-low level – self-employed individuals are far away from economic insecurity or joblessness. In this blog, we will learn:
- Who are self-employed?
- Reasons for becoming self-employed
- How to borrow a personal loan if you are self-employed?
Who are Self-employed?
Individuals who work for themselves are known as self-employed. They run their own business and may have associations with several clients simultaneously. This form of employment includes entrepreneurs, freelancers, and gig economy workers.
Reasons for Being Self-employed
The Association of Independent Professionals and the Self-employed published a report using data from the Labour Force Survey to show the current trends in this sector.
According to their report titled – Self-employment in the Modern Economy:
- 23% said that this form of employment helps them to maintain or increase their income.
- 21% said they chose this for job satisfaction or better working conditions.
- 3% said they couldn’t find any other employment. However, it rose to 11% over the age of 60.
- Only 2% said they were looking for another job.
The highest proportion of self-employed individuals that is 20% are in South East England, and the lower of 2% live in Northern Ireland. Research shows that this section of the workforce plays a vital role in driving the economy by contributing £275bn.
How to Borrow a Loan if you’re Self-employed?
It is essential to maintain a steady cash flow when you work for yourself. Traditional banks are cautious of lending money to such individuals. However, you can visit the website of any lender or credit broker who offers loans for self-employed. These are personal loans that allow you to borrow up to £35,000. You have to make the repayment between one to seven years. In addition to that, you do not have to provide any collateral at the time of borrowing.
Benefits of Self-employed Loans
These loans are handy, and hence, you can gain access to them quickly. The lenders do not take much time to make their decision. When you apply for a loan, the lenders will assess your creditworthiness and loan eligibility. You will receive the outcome of your loan application within a few minutes on your screen.
Unlike credit cards, you do not have to repay the loan at one go in a lump sum amount. With a Self-employed Loan, you can make payments in monthly instalments. That will allow you to prepare a budget and maintain it to manage your regular expenses.
You do not have to put up any of your valuable assets as security to borrow this loan. If you fall behind the repayments, there will be no risk of collateral damage. Your credit score is definitely at stake if you miss any payment.
With the acceleration in technology, self-employment has grown in the UK over recent years. It has its own set of challenges along with the benefits. It becomes imperative to have a firm grip on your finances to stay afloat during uncertain times. A personal loan is a great tool that you can use for your advantage. However, ensure that you use it responsibly to avoid getting into any financial trouble. Always borrow an amount that you can afford to repay.
To apply for a self-employed loan with us, click here.