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Business guide · 6 min read

Borrowing when you are self-employed

How sole traders, contractors and company directors can prove income, choose lenders and improve approval chances.

What lenders want to see

  • One to two years of SA302s and tax year overviews, or accounts
  • Business and personal bank statements
  • Evidence of ongoing work, such as contracts
  • A stable or rising income trend

Directors and dividends

Company directors can usually use salary plus dividends. Some lenders also consider retained profits.

Contractors

Some lenders assess day-rate contractors on an annualised contract rate rather than accounts.

Improve your chances

Keep business and personal finances separate, file accounts on time and avoid large unexplained transfers before applying.

Common questions

Can I borrow in my first year of trading?

Options are narrower but exist, particularly with security or strong personal credit.

Do I need an accountant?

Not always, but accountant-prepared accounts can make applications smoother.

This guide is general information, not personal financial advice. If you are worried about debt, free help is available from MoneyHelper, StepChange and Citizens Advice.