Can you get an unsecured business loan while you’re self-employed?

As a self-employed person, you might need a business loan for a number of reasons. You might want to hire extra staff for a big project, get a new vehicle or piece of equipment to expand your services, or even just cover a gap in cash flow during a slow season.

But there’s a problem. You don’t have the assets to use as security for a business loan yet. Without them, you worry that you might be unable to get the finance you need.

Here’s what you need to know about getting an unsecured business loan while self-employed

Can I get a loan?

Yes, you should be able to get an unsecured business loan as a self-employed person.

It’s no more difficult to get an unsecured loan for your business than it is to get an unsecured personal loan while you’re self-employed. You don’t need to set up an LLC or other formal business structure to get an unsecured loan. You can be a sole trader.

The only difference is what you’re going to use it for – something that your business financier will factor into their decisions on lending to you. If it’s clearly going to grow your business or expand your capabilities, it’s likely to be of interest to your financier.

What do I need?

Much like a personal loan, you’ll need some financial documentation to prove your ability to finance any loan you apply for.

Typically, you’ll need two primary pieces of information:

  1. Proof of business income
  2. A strong credit history.


The bottom line is that getting an unsecured business loan while you’re self-employed is very similar to getting a personal loan. You’ll need some documentation to prove your income and your ability to service the loan. There’ll be limits on how much you can borrow unsecured before you need to provide security, but this is no different to, say a car loan.


For more information on your business loan options, get in touch with us on 0508 438 227 or make an online enquiry today.

This article is solely for information purposes and is not intended to be financial advice. If you need help, please contact Avanti Finance or your financial adviser. Neither Avanti Finance nor any person involved in this article accepts any liability for any loss or damage whatsoever which may directly or indirectly result from any information, representation or omission, whether negligent or otherwise, contained in this publication. References to third-party websites are provided for your convenience only. Avanti Finance accepts no responsibility for the availability or content of such websites.

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