Definition of self employed loans

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Published: 28th April 2011
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We often receive people requesting for self employed loans, but often enough, the applicators are not eligible for self employed loans because they are not really self employed, we would not give a fuss that we always receive applications like this, because we can always refer them to the correct loans that they need to apply for instead of applying for the wrong self employed loans that is not going to be a successful application. But in order for clients to understand and have knowledge in what they should apply for instead of self employed loans, we first need to explain what self employed people means, so they do not fall into the time wasting period by applying for self employed loans, because it is the wrong loan they are applying for, and is most likely to be rejected. A self employed person is any individual who operates a business or profession as a sole proprietor, partner in a partnership, independent contractor, or consultant, but the distinction between wage earning and self-employment may appear self-evident, but definitions can vary according to the purpose for which a distinction is being drawn. There are also areas of ambiguity which can affect individuals' status for tax, self employed loans and social security purposes. Conceptually, self employment can be seen as first a question of income source, secondly of legal status and thirdly of labor market status. Different definitions may be based on one or the other of these, or on a mixture of them.

So, now I have deeply explained the definition of self employed, so you should now have a clear idea if you are eligible for self employed loans, the framework for the national accounts essentially conceptualizes self employment income as the outcome of all production traded on the market, without the use of a legal entity such as a company, which is not wages or salaries, interest, rent or dividends. This income is described as that of `unincorporated enterprises', so income deriving from small businesses which have a company structure is not counted. Income from partnerships, on the other hand, which do not have a separate legal status, is included as self-employment income. ABS household income data collections follow the same procedure, grouping income from private companies with wages, directors' fees, or income from shares, as appropriate.

Whether or not you are eligible for self employed loans, you can always apply for different loans that suits your personal needs the most.

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