Can You Get An Unsecured Business Loan While You're Self-Employed?

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As a self-employed person, you might need a business loan for a number of reasons. You might want to hire extra staff for a big project, get a new vehicle or piece of equipment to expand your services, or even just cover a gap in cash flow during a slow season.

But there’s a problem. You don’t have the assets to use as security for a business loan yet. Without them, you worry that you might be unable to get the finance you need.

We’re here to say you don’t need to worry. You can still get an unsecured business loan while self-employed. Here’s what you need to know:


Read more: How Does Your Personal Credit Score Affect An Unsecured Business Loan?


Can I get a loan?

Yes, you can get an unsecured business loan as a self-employed person.

It’s no more difficult to get an unsecured loan for your business than it is to get an unsecured personal loan while you’re self-employed. You don’t need to set up an LLC or other formal business structure to get an unsecured loan. You can be a sole trader.

The only difference is what you’re going to use it for – something that your business financier will factor into their decisions on lending to you. If it’s clearly going to grow your business or expand your capabilities, it’s likely to be of interest to your financier.


What do I need?

Much like a personal loan, you’ll need some financial documentation to prove your ability to finance any loan you are offered.

Typically, you will need two primary pieces of information:

  1. Proof of business income
  2. A strong credit history

Differences appear with different lenders. Banks will often expect several years’ worth of proof, whereas some other lenders are more flexible. GetCapital, for example, usually needs you to be in business for 9 months and earn about $10,000 a month in revenue. But even this is flexible.



The bottom line is that getting an unsecured business loan while you are self-employed is very similar to getting a personal loan. You’ll need some documentation to prove income and your ability to service the loan. There will be limits on how much you can borrow unsecured before you need to provide security , but this is no different to, say, a car loan.

For more information on your options in business finance, self-employed or otherwise, get in touch with the team at GetCapital on 0508 438 227.