Businesses everywhere took a hit due to COVID-19, but the self-employed was a sector with many struggles. Many of them werent able to pay for their basic living expenses. About 25% of those in the UK identified as self-employed got some relief through deferred home loans. It helped them keep their homes while trying to ride out the pandemic and get income coming in again.

About 33% of self-employed in the UK had an increase in their unsecured loans due to COVID-19 too. They may have used credit cards to pay for food and other basic items. They may have allocated lines of credit to help keep the business from going under. No one knew when this all started how long it would take to recover. Many of them were doing all they could to make sure they didnt have to end their business.

For others, barely keeping their heads above water put more stress on them. They saw increased late fees, overdraft fees at the bank, and even higher interest when they took out new loans. Not being able to pay the money back due to a drop in income wasnt something they had anticipated. Making the minimum payment keeps the debt high because you are merely paying the interest but the principle isnt going down by much.

Some self-employed had to decide which bills to pay and which to let go. This hurt their credit and some of them ended up at collections. It can be hard to get the money you need to catch up when you fall behind. Government programs overlooked the self-employed when it was offering assistance to businesses.


From a lenders point of view in the UK, self-employed applicants are a higher risk. It may seem unfair, but it does play a role in approval. It also plays a role in credit amount extended, interest, and other variables. One concern of the self-employed sector is future borrowing. It may be hindered because that borrowing power tends to be a reflection of earnings from previous years.

Hopefully, lenders interested in stimulating the economy of the UK look beyond those numbers. It would be wise for them to look at earnings previous to COVID-19 rather than during it to determine if they will lend to someone categorised as self-employed. The self-employed contribute greatly to the overall economy in the UK and they need some help getting back on their feet.


 During these challenging times relating to COVID-19, many people took a hit to their credit. There are many scenarios of why they couldnt stay on top of payments. Thankfully, there are bad credit loans available. They can help people get back on track. Such a loan can make a difference in buying a home, a vehicle, or other essential items for a household.

This may be a good solution for someone self-employed in the UK. It can help them generate funds for marketing, for creating new products or services, or for inventory. The dream of owning their own business doesnt have to be destroyed due to the pandemic. It is time to make a plan, execute the strategy, and find ways to get that business back on track.

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