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self employed suffered more than the employed during the credit
crunch.
Smallr
firms suffered the most and many ceased trading. Some smaller
firms could have survived the recession if they had been in
the position to obtain a self employed loan to give them the
cash injection needed to keep trading.
Sometimes
a few thousand pounds would have been all that was needed
to prop up the trader and enable him to fulfil his orders,
and come out at the end of the credit crunch, now thankfully
behind us, with his business intact.
Even smallish
self employed loans or remortgages would have sufficed to
help small firms to survive the credit crunch.
Remortgages
and self employed loans were curtailed more than any other
lending in the course of the recession, and to some extent
this is understandable, as after all it was the reckless lending
of banks, building societies and commercial lenders that had
virtually lead to the recession in the first place.
Many people
in business pre recessionn had been advanced commercial loans
of such a magnitude that they could never have afforded to
pay back the vast sums borrowed.
Many in
the property development and buy to let markets were granted
huge loans to invest up until the end of 2006, some of whom
were regarded as respectable business men, but many of whom
in previous decades would have been considered as nothing
more than spivs.
This all
lead to such a tightening up of lending criteria that even
the respectable thrifty small trader, who would have wanted
to take out a secured self employed loan or a remortgage,
was unable to do so.
Self employed
who could not prove their full net profit for whatever reason
could neither get a seured loan or a remortgage.
Others
may not have been self employed for a sufficient period of
time to have accounts at all, rendering it impossible for
them to raise capital either by remortgages or self employed
loans.
The self
declaring of net profit was completely done away with.
Now thankfully,
a lender has come back into the secured loans market prepared
to advance secured loans to the self employed after only six
months trading, although they must provide three months bank
statements to prove that he or she is earning.
These
self employed loans are available through secured loan brokers
who will only be too happy to supply all the information required
about these homeowner loans which make excellent self employeed
loans.
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