Business loans for self-employed professionals in the UK

• Cash flow challenge: Self-employed professionals struggling to secure finance due to irregular income or limited documentation, even when their business performance is strong.

   

• Perfect for: Sole traders, freelancers, and consultants seeking short-term working capital or longer-term funding to invest in growth, equipment, or contracts.

Novuna helps self-employed professionals access funding based on real business performance, not just credit scores, either through our award-winning in-house lending service or by comparing providers to ensure you secure the best option for your needs.

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Finance solutions built for self-employed professionals

Being self-employed doesn’t mean funding should be harder to access. Whether you’re a contractor, freelancer, or small business owner, your business deserves the same opportunities to grow and invest as any limited company.

Business loans for self-employed professionals are designed to:

• Cover expenses such as stock, marketing, or equipment.
• Maintain healthy cash flow between invoices.
• Fund business expansion or new contracts.
• Manage seasonal variations in income.

Unlike traditional bank loans, lenders like Novuna focus on turnover, affordability, and cash flow stability rather than relying solely on payslips or credit scores.

What is a self-employed business loan?

A self-employed business loan provides funding to individuals who work for themselves without the need for an employer or long trading history.

These loans are available to:

• Sole traders and freelancers working across any sector.
• Partnerships where individuals share financial responsibility.
• Small limited companies with directors who also operate as self-employed.

Key features include:

• Funding from £1,000 to £500,000, depending on business performance.
• Flexible repayment terms (3–60 months).
• Options for secured or unsecured lending.
• Fast decisions often within 24-48 hours.

Best loan options for self-employed professionals

Here’s a comparison of the most popular finance solutions available to self-employed professionals in the UK:

Eligibility and application requirements

A self-employed business loan provides funding to individuals who work for themselves without the need for an employer or long trading history.

While eligibility criteria vary between lenders, most require:

• Proof of self-employment (e.g. HMRC registration, UTR number).
• Minimum 6–12 months of trading history.
• Business bank statements (usually 3–6 months).
• Annual turnover (often £20,000+).
• ID and proof of address for compliance.
  

How to improve your chances for a self-employed loan

1. Keep your business and personal finances separate.
   
   Use a dedicated business bank account to show income consistency.
   
   

2. Provide accurate financial documentation.
   
   Submit clear invoices, bank statements, and tax returns to demonstrate income flow.
   
   

3. Manage your credit proactively.
   
   Pay suppliers on time and check your business credit file regularly with Experian or Equifax.
   
   

4. Borrow realistically.
   
   Choose an amount aligned with your turnover to show responsible borrowing behaviour.
   
   

5. Highlight business potential.
   
   Demonstrate how funding will generate growth, stability, or new contracts.
   
   

Benefits of business loans for self-employed professionals

While securing funding, it’s equally important to rebuild your business credit for future borrowing.

• Fast access to funding: Apply online with decisions in 24–48 hours.
• Flexible repayments: Choose fixed or revenue-based repayment models.
• No collateral required: Many self-employed loans are unsecured.
• Improved cash flow: Bridge the gap between payments and invoices.
• Business growth support: Invest in new tools, marketing, or contracts.

With the right loan structure, self-employed professionals can balance freedom and financial stability.

Boost your cash flow Speak to an expert

How Novuna Business Cash Flow can help

At Novuna Business Cash Flow, we understand that income patterns vary for self-employed professionals and that flexibility matters.

Speak to our experts today to help you get a great fit for your situation.