LoanAgainst offers asset-based loans, which are ideal as personal loans if you’re self-employed in South Africa.
In South Africa, self-employed professionals, entrepreneurs and freelancers face unique challenges when seeking financing. Given the way that the world of work is evolving, this means that more and more people are finding it difficult to access traditional loans.
Challenges in getting finance for the self-employed
Banks and other formal financial institutions tend to prefer approving loans to individuals with employers and steady, predictable monthly income.
They base loan approvals on risk assessments that take personal financials, credit rating, employment record and documented proof of income into account.
It’s not impossible to get a personal bank loan when self-employed, but it is more difficult.
Business owners, freelancers and independent contractors may be required to furnish proof of income over a longer period than those who are formally employed. They may find it harder to secure approval for loan applications. They may also be offered less attractive loan terms.
Out of step with the evolving work world
Over the past 10 to 15 years, there has been a massive increase in the proportion of workers who work as contractors or freelancers (in South Africa and worldwide).
According to World Bank sources, as many as 28% of employed South Africans are self-employed.
More South Africans are successfully running their own businesses, or even multiple businesses. Many more again accept project work, charging freelance or contractor rates.
In this context, the run-around that traditional lenders tend to give self-employed applicants is increasingly out of touch with the modern world of work.
The asset-based loans we offer
At LoanAgainst, we offer personal loans secured by personal assets of value, from vehicles to jewellery or even artwork.
The loan amounts we offer are based solely on the appraised resale value of the assets.
This makes employment status irrelevant.
The only supporting documents required are proof of ownership of the asset, a copy of your ID and a recent utility bill or retail account addressed to you at your current home address.
An agreement with LoanAgainst is entirely confidential. We do not share any information with credit bureaus or other third parties (even in the event of a client missing a repayment or defaulting on a loan).
Advantages of our personal loans if you’re self-employed
There are many benefits to LoanAgainst personal loans if you’re self-employed, including:
- very fast, straightforward loan approval
- flexible terms, with no early settlement penalties
- competitive interest rates
- discrete and secure.
Call us on 064 976 7106 for more information about personal loans if you’re self-employed in South Africa or simply complete and submit our online loan application.
