Credit Unions and self employed, Closed shop

Dymo

As of the last couple of weeks dealings between credit unions and the self employed have become very difficult due to new regulations after being introduced. It's practically like a bank now if your self employed and want any size loan even €500 for personal use you must produce a set of accounts in good standing within the last year 09 and a up to date valid Tax clearance certificate. Now this isn't business loans its personal loans.

I've always used the credit union for the last 10 years for various loans, home improvement,car loans, study loans etc. and I've never missed a payment and my total repayments last year was over €8,000. Last week I looked for a €2,000 which was only a couple of thousand above my shares but was told I'd have to produce my accounts and tax clearance cert, the cert I have but my accounts show a loss from the business. (This was a personal loan and I had my P60 with me) And the 09 accounts are going to be worse so that pretty much rules me out of ever getting a credit union loan for the next 2 years and I was told if I was employed there'd be no problem I'd get it straight away.

I always viewed the Credit Union as a great resource for people getting personal loans but now I'm seem to be finished with them and don't have any other choice but to take my shares out. Just another block put up for anyone self employed. To me being employed has so many more advantages at the moment.

Owen

Being self employed is a disaster from a Credit Perspective, I should know. I love my job, but I'd be terrified if I had to get a mortgage, or buy a new car.

91011

Accounts showing a loss are not always seen in a bad light especially after the past couple of years. What they'll be interested in (as will the banks) is the ability to manage the loss and the longer term picture both from over 2 years back and the forward picture.

yutta

IMO, it's not worth being self-employed unless you're earning a €100k salary after 3 years.