Loans for Self Employed in Canada

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Getting loans for self employed in Canada is easier than many people think. You just need to know which lenders to approach and what’s the eligibility criteria. That’s exactly what we are going to discuss in this article.  Just keep scrolling, and you’ll be a smarter seeker of a self employed mortgage by the time you finish this article.

How to Get a Loan If You Are Self Employed with Bad Credit?

If you are a self employed person with bad credit, you should know that getting a self employed mortgage from a bank would rarely be possible. Hence, you should seek the loan from a private lender.

In case you aren’t eligible for a loan from a private lender, you can get a self employed mortgage by seeking the help of a co-signer. A co-signer is a person who takes the responsibility to pay back the loan if you fail to do so. A co-signer can be anyone – a friend, a family member or even your boss.

In case you can’t find a co-signer, you can still get loans for self employed with bad credit. In order to do that, you need to apply for a secured loan and provide collateral. The collateral needed for loans for self employed with bad credit can be anything of value that you own – your home or a car.

Offering collateral while seeking loans for self employed with bad credit will make you less of a risk for the lender, and you will probably get a lower interest rate.

Which Documents Do You Need to Get a Self Employed Loan?

The documents needed for a personal loan for self employed vary from one lender to another. The most common ones are:

  • Tax returns
  • Bank statements
  • Financial statements
  • Personal identification documents
  • Company-specific information like proof of the fact that you have a company

Factors to Consider When Choosing a Secured Loan Provider

There are many factors to consider when choosing a lender that offers loans for self employed. Some of them are mentioned here.

  • TAT – It means the total time needed by a lender to process your application and transferring funds when you apply for a personal loan for self employed. The TAT should be as low as possible if you need the money instantly.
  • Interest Rate – You should know the interest rate offered by the lender and check whether it’s fixed or variable. If it’s fixed, you know exactly what interest amount you have to pay each month for a personal loan for self employed. In contrast, if it’s variable, the interest amount will differ each month.
  • Eligibility – The eligibility criteria for a personal or business loan for self employed is different for each lender. Most lenders want you to be over 18 years old and a Canadian citizen. They will need you to provide proof of income and bank account statements.
  • Loan Processing Fee– The loan processing fee should be as low as possible. It also varies from lender to lender. It differs on the basis of what type of loan you need, a personal one or a business loan for self employed.
  • Application Process– The application process for personal or business loan for self employed should be easy. You should be able to apply online or offline and complete the application process within a few minutes.
  • Need for a Collateral – When seeking loans for self employed persons, make sure that you know whether the lender needs you to offer collateral or not.

Lenders That Accept Self Employed People

Though there are many lenders offering loans for self employed persons, the top 5 options worth consideration are mentioned here.

Name
Min. Loan Amount
Max. Loan Amount
APR
Long Term
Monthly Payments
Mr. Payday
$100
$1500 (first time customers $500)
Up to 59% (varies by province)
About 2 weeks on average
Compare
Cash Money
$50
$1,500
Varies by province (182.50% - 782.14%)
Up to 60 days
Compare
Money Mart
$120.00
$1,500
Varies by province (Average 388.85%)
Between 7 and 42 days (varies by province)
Compare
My Canada Payday Loans
$100
$1,500
Varies by province (Average 599.64%)
Up to 2 months
Compare
iCash
N/A
$1,500 (first time customers $750)
130%
42 days
Compare
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This website is perfect for people who want loans for self employed persons quickly. If you submit an application during the business hours, the lender can let you know the loan amount you can borrow (if you are eligible) within 30 minutes.

The lender can also transfer the amount you need within 1 hour of approving the application. You can get anywhere between $500 to $1500 here.

No matter whether you need just $50 or $1500, this lender can take care of your needs. It also offers installments loans under which you can borrow up to $10,000.

In addition, it provides line of credit loans, which allow you to borrow whichever amount you need and whenever you need it. You just need to pay for the time you make use of the cash. This is a good option for you if you need loans for self employed people for a few days only.

Money Mart also offers different loans for self employed people. You can select an installment loan amount anywhere between $1,000 to $15,000 or you can take a cash advance amount anywhere between $120 – $1,500.

Just read the day terms before you take the loan so that you can repay it in time.

This website is suitable for people who have all the documents like proof of income, bank statements, a utility bill, and the like.

The number of formalities that need to be completed while getting a loan from this lender are quite high, but their processing speed is good. You can get a decision on the same working day (same as your day of application) in most cases.

When you are looking for loans for self employed people by approaching a lender whose processes are automated and hence quick, this lender is a good one.

iCash is a responsible lender because it has a policy of not offering you more money than you can repay easily. You can get up to $1,500 from this lender if you meet the minimum requirements needed to apply for the loan.

Other Options to Consider

If you want to know about only those lenders who can provide you with secured loans for self employed, you can visit loansgeeks.com. It is a useful website that gives you a list of lenders who can meet your needs.

To get the information, you just need to provide your basic details and share what type and amount of loan you need. The website does all the job for you in a timely manner, so you can save a lot of time when seeking secured loans for self employed.

How Much Can You Borrow If You Are Self-Employed?

The amount of loan you can get varies from lender to lender. If you meet all the personal loan eligibility criteria, it is likely that you will get a loan of up to $1500 from most lenders.

If you need only $1000, there is no need to get $1500 loan amount as it will only make repayments tougher. Always stick to the loan amount that you actually need, and do not take out a bigger loan even if you are given an opportunity to do so.

Tips to Qualify for a Secured Loan for Self Employed People

According to Statistics Canada, there were over 2.8 million people who were self employed in 2017. If you are among them, then you need to read the following tips to qualify for a secured loan for self employed people.

  • Have a Proof of Income

If you want to meet personal loan eligibility criteria, be prepared to show your income for the last few months or even years. It will allow the lenders to decide how much money they can credit you.

  • Show Tax Returns

In case you don’t have the income proof, you should be able to show tax returns to the lender. It sometimes works as personal loan eligibility criteria too.

  • Be Ready to Pay Higher Interest Rates

If you don’t have a steady job and you are self employed, you need to pay a higher interest rate on loans as compared to the interest rate paid by people who are employed by an organization. If you want to take loans for self employed without accounts, the interest rate would be even more.

  • Seek Help of an Expert

In case you can’t get loans for self employed without accounts easily, you can consider taking the help of a mortgage broker. These experts know which lender would be willing to give you the loan. The expert might also suggest that you take loans from multiple lenders to meet your needs.

  • Ensure Your Credit Score is Good

When you want loans for self employed without accounts, you need to ensure that your credit score is good. Your credit score would be good if you make all previous payments on time and not use too much of the available credit.

How to Improve Your Credit Score

Final Words

Getting any type of loan for the self employed, especially secured loans for self employed is easy thanks to the abundance of private lender options present on the market.

If you do some basic internet research, you will be able to find the right lender within a few minutes and get the loan amount in less than a day. Be a smart loan seeker, and you will get the money you need on time, every time!

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