Self-Employed Loans - The Nifty Experience - Nifty Personal Loans

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Self-Employed Loans – The Nifty Experience

The Dream of Working Australians  

The appeal of being self-employed is becoming increasingly evident; within a world of 9-5’s, some flexibility can look very attractive. Imagine this, working on what you like, choosing your hours, calling the shots and bringing home the ‘big bucks’. Sounds nice, doesn’t it. Unfortunately, this ideal doesn’t hold up to much scrutiny. Not only are self-employed individuals likely to work significantly more hours, but, they also have the added stress of keeping both the business and themselves a-float. Add in the difficulties of market prediction and resource management and, it’s no wonder only 16.3% of working Australian’s are self-employed, as reported by The World Bank.

self employment

Self-Employed Loans

Now, this isn’t to say being self-employed is a bad thing, far from. It is no secret that Australian businesses act as the backbone for our economy. If you’re an aspiring entrepreneur or a seasoned sole-trader contributing to this, we think it’s nothing but admirable. It is because of this that we do not shy-away from self-employed applicants looking for a loan, where some other lenders might. With this said, though, we do have some additional rules for self-employed loans, which we will touch on later.

So, what defines a self-employed Australian?

Firstly, self-employed Australians are defined as individuals who work for themselves. Under their self-employment their income is dependent on the profit of a service or good they provide. Triumphs of the entrepreneurial types and business owners typically inspire us. However, when it comes to borrowing money, self-employed Australians can face difficult obstacles set by other lenders. On the surface, it may seem unfair that self-employed individuals can find it harder to get personal finance, though, it is reasonably self-explanatory when looking at the determining factors. 

Why is it harder to get a self-employed loan?

There are several reasons why getting a self-employed loan is more complicated than if you were traditionally employed. Two of the main reasons include the risk taken by the lender and, the consistency required on the applicant’s behalf. As an example of this, we would like to list the main reasons applicants are often declined when looking for self-employed loans.

Income verification

Assessment teams need to be able to differentiate income deposits from regular day-to-day account transfers. If this cannot be done, and no further evidence is supplied, the application will likely be declined. Lenders need to adhere to responsible lending obligations, which advise that reasonable steps must be taken to verify an applicant’s financial position. Not being able to verify an applicant’s income makes this impossible. 

Inconsistent income

One of the main reasons why self-employed loans are declined is due to income inconsistency. Before providing credit to an individual, lenders must reasonably determine whether the applicant can afford to pay the loan without entering un-due hardship. If an applicant’s income is inconsistent, this can become difficult. Now, by inconsistent, we mean significant discrepancies in both the amount and frequency of the deposits. If an average cannot be reasonably determined, the application will be unsuccessful. 

Business accounts

Self-employed applicants generally need to apply using a personal bank account, not a business account, if it is a personal loan they are applying for. A loan deposited into a business account can be argued to be a business loan, which is fundamentally different from a personal loan. As Nifty is not currently in the position to offer business loans, any application submitted through a business account will be rejected unless they pay themselves a wage into a personal account.

Nifty’s top 5 self-employed loans

As we just mentioned, Nifty does not offer loans to businesses, which includes credit for business costs (just yet anyway). We can, however, offer personal self-employed loans. These are different as they are only to be taken to cover the personal expenses of an applicant. The best news? Personal loans can be used for almost anything!  Take a look at our five most popular self-employed loans:

  1. Car Repairs – Because everyone runs into car troubles. If you are self-employed and need some extra cash for car repairs, look no further than Nifty!
  2. Dental – Toothaches seem to come at the worst times, right? Get your butt into the dentist’s chair with a Nifty loan!
  3. White Goods – Or anything furniture/appliance-related, really. Secure that T.V. through Nifty. 
  4. Rental Bond – From moving trucks to cleaning; first weeks rent to rental bond. We got you covered. 
  5. Holiday Even if you’re the boss, holidays are a necessity. Your next trip could be financed through us!

The Nifty difference

With Nifty loans, you can forget digging through mountains of paperwork and endure endless photocopying. Nifty doesn’t treat employed or self-employed applicants too differently. We don’t punish self-employment with hefty paperwork; we simply require our applicants to be receiving a regular income into a personal bank account for at least three months. Forget gathering all your financial records, as long as you can prove your income is to be consistent and ongoing; you’ll be as good as gold!

Self-employed loans, what are the options?

For those looking for self-employed loans, Nifty offers three different personal loan types; Small, Medium and Large loans. As mentioned previously, they can be used for practically anything! Think self-employed loans for home renovations, education and medical expenses; Nifty has it all!

For the larger variants, you’ll likely need to provide some sort of security, whether you’re employed or self-employed. Though, providing an asset as security can also greatly increase your chances of approval! If you don’t mind attaching your car to the loan, this could be something to consider. For some reference, shown below is a break-down of the offered loan types and their respective loan amounts: 

Small Cash LoansUnsecured$300 – $2,000
Medium Personal LoansSecured$2,100 – $4,600
Large Personal LoansSecured$5,000

If you would like an overview of the costs associated with each type, scroll up and have a look at our loan calculator. This tool offers a rough insight into the value for each of our loans. You can also find more detailed information on our costs page. So, whether you’re looking for a large loan or a small one, Nifty provides the options to suit your needs. Have you struggled with a self-employed loan previously? Apply with Nifty, and you can have confidence in knowing you’ll get a fair go!

What you need to apply

There are no endless forms to complete, accompanied by mountainous paperwork. We believe in a simple, painless small loan experience. And that’s the Nifty difference when it comes to self-employment applicants. If you’re looking for a self-employed loan, you will need to meet the following requirements before you apply:

  • Be at least 18 years of age
  • Are an Australian citizen or permanent resident
  • Are receiving a regular income for a minimum of three months
  • Has internet banking active
  • Are getting paid into a personal bank
  • Have an active mobile number and email address

And that’s it! Navigating the course of self-employment can be tricky, especially with traditional lenders, making it tricky to borrow small loans. Always remember there is always another way when it comes to financing, you just have to search for it! 

Considering self-employment? Here are some essential questions to ask yourself

Taking the plunge and starting your own venture can be daunting. There a myriad of things to consider before stepping out into the world of self-employment. So, here are is a list of handy questions to ask yourself before entering self-employment:

Where will you work?

Before taking the leap into self-employment, it’s important to consider where you will work. To figure out where to best situate your work environment, think about whether you want to work from home, to begin with, or rent an office space. How versatile is your business? Could you work from anywhere with just a phone and a laptop? Meditate on where you want to start your business and how you want it to operate initially.

How will this impact my family and friends?

Discuss your plans for self-employment with your family and talk about how it may impact their lives. Also, talk your plans through with a trusted friend, don’t be afraid to get some advice on your next big move.

What is the lifestyle impact of self-employment?

Self-employment can alter your lifestyle. Sometimes it’s hard to see it coming before it happens, so prepare your family and friends for a possible increase in workload. Think about how your business can help create the lifestyle you desire, then find a way to make it happen!

How will you protect yourself against risk?

Sometimes risks fail, and to protect yourself and your family; it’s best to have a backup plan, such as insurance.

How will you market your business?

To truly stand out, in our world full of small businesses looking to strike gold, your marketing has to be on point! Therefore, when it comes to choosing the right marketing, you must consider your budget – what percentage you want to allocate to marketing. Also, consider whether to work with a marketing agency or hire your own in-house team.

Have you factored in the cost of taxes?

Knowledge is power! So, gather all the insider intel you need on business taxes you’ll need to pay. Stay ahead of pesky expenses!

Do you know what laws apply to your business?

Before entering into a new industry, understand the laws relating to your new venture, which could mean brushing up on the relevant compliance standards, operating practices and record-keeping requirements.

Have you sorted out a bookkeeping and filing system?

Devising a method for bookkeeping and filing is key to a successful and organised business. Starting a new venture can be confusing and time-consuming, so it’s best to set up a system where your files are easy to access when needed.

Are you passionate about your possible business venture?

Self-employment can be scattered with pitfalls and some hard times. If your idea is inspiring, however, and you love what you want to accomplish, then it makes all the sweat and tears worth it!

Keep in touch!

If you have unanswered questions about our service, you can head to the FAQs page and see if the answer is waiting for you. Want more of Nifty Loans? Great! Follow us on Pinterest, Instagram, Twitter and also keep up to date with the latest personal finance and lifestyle trends via our blog.

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Andy Andy

AUTHORITATIVE SOURCE

Andrew Bell

Since founding Nifty in 2016, Bell has continued to make waves within the local financial sector for his continued ambition and willingness to adopt emerging technologies.

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Loan Costs

Large Loans

Large Loans

Large Loan Example

$5,000 - $10,000

Loan amount:
$5,000
Terms:
9 - 24 months
Establishment fee:
Variable
Monthly Fee:
$0
APR:
21.24%
Comparison Rate:
48%**
View Example
Loan amounts:
$5,000
Terms:
18 months, (78 weekly repayments)
Establishment fee and Total Interest:
$1,897.54
Total payable:
$6,897.54
Weekly installments:
$88.43
View Loan Details
Medium Loans

Medium Loans

Medium Loan Example

$2,001 - $4,600

Loan amounts:
$2,001 - $4,600
Terms:
9 - 24 months
Establishment fee:
$400
Monthly Fee:
$0
APR:
47.8%
Comparison Rate:
65.86%**
View Example
Loan amounts:
$2,500
Terms:
24 Months, (104 weekly repayments)
Establishment fee:
$400
Total other fees:
$1,609.44 (reducing interest)
Total payable:
$4,509.44
Weekly installments:
$43.36
View Loan Details
Small Loans

Small Loans

Small Loan Example

$300 - $2,000

Loan amounts:
$300 - $2,000
Terms:
6 - 9 months
Establishment fee:
20%
Monthly Fee:
4%
APR:
N / A *
Comparison Rate:
138.37%**
View Example
Loan amount:
$1,000
Terms:
6 Months, (24 weekly repayments
Establishment fee:
$200
Total other fees:
$240
Total payable:
$1,440
Weekly installments:
$60
View Loan Details

* Not applicable. Small loans do not charge an annual interest rate.

** WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Different loans may include other payable fees and charges. All fees and charges will always be displayed on your loan contract.