A common preconception when we speak about the self-employed is that this refers solely to trade professionals such as electricians, plasterers, plumbers, gardeners and carpenters.
However, there are several ways in which a business can operate through self-employment. In fact, there are 3 types of legal entity:
- Sole trader – the easiest option for starting a business. A professional sets-up as a sole trader and works independently to generate their own income.
- Partnership – a minimum if 2 professionals that hold responsibility for a business. They can either have equal shares or have an agreed share structure based on their individual commitments to the business.
- Limited company – a business that has a completely separate legal entity from the people who own and run it.
Many people believe that a self-employed loan is only applicable to a sole trader when in fact it can be utilised by any of the 3 legal entities previously mentioned. For example, an owner of a limited company can apply for a self-employed loan, here are a couple of examples:
- A property professional was looking to purchase a franchise so they approached the NGI team and we were able to secure a self-employed loan of £150,000 – find out more about Doreen’s story.
- A partner with a law firm was looking at purchasing a new Range Rover and when they approached NGI we spent some time reviewing their individual circumstances and then secured a self-employed loan to complete the purchase – find out more about Simon’s story.
- Other examples of using a self-employed loan have been the purchase of a refrigerated van, the complete refurbishment of a restaurant and the purchase of scaffolding equipment. This type of funding is very adaptable for all types of self-employed professionals.
If you need some help with a self-employed loan or would like to discuss an application, please call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.