Whilst you can most certainly get car finance when you’re self-employed, it’s worth following these tips to increase your chances of getting accepted. Lenders can find self-employed people more challenging than traditionally employed people to assess as income can vary from month to month. Your business may also be in the early days so less established. All of this can make lending money feel more risky, however rises in the number of self-employed people means that lenders have become far more willing to lend – good news! In this post we share 5 top tips for getting car finance when you’re self employed.
1. Make sure your yearly accounts are in order
Lenders will be looking for proof of a steady income, and so most will ask to see your latest yearly accounts – traditionally this will be for the past three years however lenders are becoming less stringent and will sometimes only request two years (or even one!). Make sure you have them in order and ready to go.
2. Check your credit rating and make sure it’s accurate
You can use credit score sites such as Experian to access your credit report. This is a great way of checking that all of your details are accurate (as if incorrect it will make it far less likely to be approved for a loan) and making any amends that are necessary. Your report will also show details of any outstanding payments that you owe so try and make sure these are made and up to date. This will prove to a lender that you’re reliable at making payments.
3. Add yourself to the electoral roll
This is such an easy thing to do and will mean that your identity and address are easily verified by the finance provider.
4. Put down a larger deposit
A larger deposit is likely to increase your chance of securing car finance as lenders are more likely to approve a smaller loan.
5. Shop around or use a finance broker
It’s wise to do your research around which finance providers are more likely to lend to people who are self-employed. This is also where it is hugely beneficial to use a car finance broker as a broker will know straightaway which lenders to speak to, and what to do to increase your chances of being accepted.
If you are looking to finance your next luxury, classic or sports car, or are looking for finance options such as asset finance or business loans, get in touch with Dorsia Finance – info@dorsiafinance.co.uk | 01522 420 420
