Are you an entrepreneur in the making?
Do you often struggle with small funds creating a base for your business?
There are certain situations like – unemployment while working on a business idea, unplanned job exit, insufficient funds to execute the business organizational structure, etc. They often fear getting bankrupt while meeting the initial stage of business expenses. Initial expenses are indeed far higher than the expenses after business establishment.
Why do Entrepreneurs struggle to get finance in the early phase?
Most young students are near-close to debt as maximum are graduates paying student loans. One could hardly believe a student has enough savings or an emergency fund.
Financial instability is one reason. There are other reasons why young entrepreneurs struggle to get financial assistance:
a) Poor Credit History
Early-stage entrepreneurs generally lack a credit history or have a poor one. Established entrepreneurs have the privilege of exercising enough flexibility in building a credit score. In comparison to it, young entrepreneurs hardly hold credit cards. Or even if they do, the lenders deny the loan.
One needs financial backing, assets, or personal guarantees to get the loan. However, some lenders provide poor credit loans with guaranteed approval. These loans require a guarantor over the loan to qualify. It is ideal for individuals struggling to get cash owing to unreliable credit scores or circumstances.
b) No Network
If you are too young to start a business – like in your 20s or early 30s, you hardly have a perfect spiral of networks. Most of your buddies or companies must be studying or just starting university life.
Having mature contacts could help an early entrepreneur contact some venture capitalists for funding. The absence of this eliminates the chances of such encounters. With a limited number of people encountered, one needed help to promote the services. Restricted capital limits the escape for marketing through a broad spectrum.
These circumstances delay the dream and make an entrepreneur wait until one allocates good funds. Well, the good news is- you no more need to wait forever to meet your requirements. Instead, you could rationalize your business goals with quick and efficient funds on your income from unemployed benefits.
Loans For People on Benefits
If you are jobless with a genuine cause like – sudden company closure, economic downturn, pandemic, etc., you may apply for unemployment benefits that government provides. Under this, you may cover essential costs of living.
It may include food, water, and essential and unavoidable medical support. You can qualify if you have been unemployed for over six months, leveraging unemployed benefits and monthly income below £2000/month. Not every lender provides loans basing income from benefits as an affordability parameter.
Easyloansuk provides these loans to jobless and financially struggling individuals to meet more than their survival needs. If you search for Long-term loans from bad credit direct lenders, you have landed right. Whether it is any short-term requirement or long-term, we provide financial assistance as per affordability and financial conduct.
To avail of loans, income from unemployment benefits must be something other than a pre-dominant income proof. It is essential to avoid unnecessary debt and hurt the finances further.
Primary Parameters to Qualify For Loans For People On Benefit
Apart from having a valid slip of the income from unemployed benefits, it would help if you meet the below criteria:
- Aged 18 and above
- Must be a UK Citizen
- Have a UK bank account
- A passive income source apart from benefits/ income for self-employed
Having a regular income works best in this case. However, as an unemployed, you can prove other income modes such as payment - benefits.
What Benefits May Count as Income Proof On The Loan?
Here are some benefits that you might be leveraging apart from Jobseekers Allowance:
- Child Tax Credit
- Child care benefit
- Fostering Allowance
- Personal independence payment (PAP)
- Incapacity Benefit
- Industrial Injuries and Disability benefit
- Working Tax credit
Disability benefits and Personal Independence Payments are generally long-term payments that one receives as a benefit from the government. In this case, you may qualify for a flexible amount to meet your requirements.
*Tax-free benefits don’t count as income
How can Long-term loans for bad credit help the unemployed on benefits?
Ensuring financial flow is critical to growth. Check out some best ways you can benefit from long-term loans for bad credit from direct lenders.
1) Ensure breathable working capital
Ensuring consistent working capital is critical for any business to hit the success mark. You require a breathing space to launch a new product or attract new customers.
Try to allocate some towards the business before investing. Also, evaluate expenses that could help you slash costs and save towards meeting goals.
The loan may help you set up a business team structure by delaying the loan repayment until later..
2) Purchasing a capital-oriented equipment
One cannot underestimate the significance of advanced equipment for business growth. A business must invest in equipment if the existing one turns obsolete. You can only compete with having in-trend equipment on the board. You may get a portion of the amount from the lender to get the equipment, but you can bridge the amount using the loan.
You may qualify for an affordable interest rate over the loan if you have a consistent payment mode. Or you could leverage equipment as collateral to qualify for lower interest rates and repayments.
3) Utilizing market opportunities
All Young or budding entrepreneurs’ needs is a glorious opportunity for a breakthrough. Missing out on a golden venture owing to fund shortage is not done.. You could book tickets for an international project or tap the opportunity with needing marketing efforts using the funds.
You can also plan future business expenses and invest today using the loans. For example, if you need a new cabinet or a discussion board later, you can use this long-term loan and get them now.
4) Rent a new facility
Sometimes, more than the existing space is needed for the team. The scattered team does not reflect the best of the company’s policies. If you wish you could have a bigger space instead, go for it now. Check out the best locations that meet your expectations and rent them. Yes, you can rent space using the loans.
Thus, living on benefits does not imply a full stop on your entrepreneurial journey. Instead, loans for people on benefits grant the push that every new business needs to thrive. Contact us to know about the possibilities in detail.