If you work for yourself, you’ll know how hard it can be to find clients, to be paid properly and on time, and to get referrals that actually lead to more work. You’ll also know what a struggle it can be sometimes to cover advertising costs, to maintain a visible online presence, and to generally balance the books in the face of myriad expenses that can crop up when striving to keep your own business afloat.
And if you become ill or have an accident, there’s no sick pay fall back on either, is there? Just as there’s no holiday pay to look forward to whenever you manage to get a few days away. If, on top of all this, you’re self-employed with bad credit, you probably think that securing car finance is as likely as enjoying an all-expenses paid trip to Barbados this year! But it ain’t necessarily so…
“I want to put a face to the name.”
Most self-employed people across the UK find having transport essential. Although the Internet’s arrival (and the growing influence of Social Media) is supposed to mean you can run a business all week without ever having to leave your home office, the reality for the self-employed can be rather different. Why? Because clients might expect you attend monthly meetings at their business premises. Prospective clients may want to meet you in person before commissioning any work. And, if, for example, you’re a freelance graphic designer, a marketing company may prefer it if you were present at all their monthly (or even weekly) creative team brain-storming meetings. Blimey!
All that sounds positive and promising, but – if you haven’t got a vehicle – how are you supposed to get there each time with public transport being so unpredictable (and sometimes downright unreliable) not to mention increasingly costly?
You simply HAVE to have your own set of wheels if you’re going to service your current client-base and grow your business as you hope to over the coming years. But that poor credit rating ‘thing’ keeps gnawing away at the back of your mind, doesn’t it? Getting a new set of wheels, or upgrading from your current unreliable car to a better one, simply feels like a pipe dream.
The good news is that it is entirely possible to secure car finance as a self-employed person, you just have to know where to look, and which pitfalls to avoid. Yes, unfortunately, there are plenty of dodgy dealers out there making outlandish promises about “guaranteed finance to all applicants!” Don’t take any notice of that. No finance agreement is guaranteed until the lender says so. It’s not a promise a dealer can make. Thankfully, there’s plenty of decent dealerships and car finance companies across the country who don’t make such promises, preferring to keep things honest and straight instead.
But don’t make this mistake…
With all that the self-employed have to pay for each month, it unsurprising that those with bad credit seeking car finance tend to look for long-term deals, with monthly repayments being lower than normal, the cost being spread very thinly over a number of years. Although this sounds like a good plan, it can prove catastrophic, due to the sheer cost of the interest payments that must also be made over the duration of the loan. Best to seek a three-year agreement and to budget strictly to ensure you never miss a payment. Being on the road should create the extra income you need, through allowing you look beyond your local area (regionally and nationally) when seeking to expand your client-base.