There has always been a preconception that it is difficult for sole traders to get business finance. However, this is really one of those business myths that we are happy to expel.
There are some excellent funding options available for sole traders.
If we put this into context, according to the UK Government there are over 4 million people classed as sole traders which is actually one of the largest and most popular business categories. We all recognise trades like handypersons, plumbers, decorators, carpenters and gardeners. However, there are hundreds of other types of sole traders which can include consultants, business professionals, medical professionals, IT specialists, groundworkers, couriers, private tutors and many more. It is a massive market and quite rightly funding is made available to help everybody in this arena.
In order to be a sole trader, you have to be responsible for the business you are in control of and running. Each sole trader will have their own activities, goals and priorities but ultimately, they will all have the same goal of being successful and making as much money as possible.
There will be times when any sole trader must turn to business finance to help with either the running of the business, implementing growth initiatives or simply purchasing new equipment or machinery.
Previously most sole traders would turn to their local bank manager, but this no longer offers the benefits it used to. Instead, there are lots of other funding options available.
To be in the best position of securing business finance a soler trader needs to be able to demonstrate a good credit history and strong business performance over the last 24 months. They need to keep accurate accounting records, ensuring both tax payments and self-assessment fees are paid on time. Applying for business finance typically requires the sole trader to present up to 6 months of business bank statements.
There are a number of excellent finance solutions available for sole traders with the most common being:
- Loans
- Asset finance
- Vehicle finance
- Machinery finance
- IT finance
If you are a sole trader there are some excellent options available for business finance. To find out more please call us on 01993 706403 or e-mail [email protected].
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