Quote from Laissez Faire:
Yeah, I figured that much, hence my "easier said than done".
Even a full time job at home depot or MCD is better than being self employed when it comes to getting a loan.....
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Is it hard for traders to get loans/credit?
- Thread starter dv4632
- Start date
Even a full time job at home depot or MCD is better than being self employed when it comes to getting a loan.....
Quote from danielc1:
I have found out the following when applying for (big) loans while being a trader:
Deposit every week or month the same amount in one of your bank accounts for a year or two, three.
When you apply for a loan, you are selfemployed, and if they ask you what you do, you say that you sell and buy securities. When they ask how much you make, you tell them the amount you have put in your bank account for the last two, three years or give them your tax return.
The loan officers, banks and leasing company's will treat you like any other business person.
If you just tell them you are a fulltime trader, they will not take you seriously.
How does it work out with the monthly deposits because they'll only show they are from Brokerage Account A to Bank Account B and not from a place of employment, i.e. a proper firm? Does it matter if you immediately pull the same amount from Bank Account B back to Brokerage Account A for trading?
What should you put as occupation on the tax return? Does IRS care as long as you pay your taxes? What if the tax return shows a down year?
Quote from marketsurfer:
Even a full time job at home depot or MCD is better than being self employed when it comes to getting a loan.....
Perhaps before you resort to a minimum wage job here is an alternative,
join a prop firm essentially on your taxes and elsewhere they will be your employer i.e. you will be a proprietary equities trader at firm X, they will issue you a K1 ( registered prop firms, non registereds issue 1099 which won't work in this case) and verify your employment, all you have to do is pass S7 or S56.
yeah, except I'm not so sure I want to lose money just to get a loanQuote from dealmaker:
Perhaps before you resort to a minimum wage job here is an alternative,
join a prop firm essentially on your taxes and elsewhere they will be your employer i.e. you will be a proprietary equities trader at firm X, they will issue you a K1 ( registered prop firms, non registereds issue 1099 which won't work in this case) and verify your employment, all you have to do is pass S7 or S56.
Quote from dealmaker:
Perhaps before you resort to a minimum wage job here is an alternative,
join a prop firm essentially on your taxes and elsewhere they will be your employer i.e. you will be a proprietary equities trader at firm X, they will issue you a K1 ( registered prop firms, non registereds issue 1099 which won't work in this case) and verify your employment, all you have to do is pass S7 or S56.
Yeah, that makes sense, but have not seen it work yet in the real world. surf
Quote from dealmaker:
Are you aware of any instance a profitable prop trader with good credit and K1 having being turned down for a loan or credit?
No, I am not aware of one being approved either. K1 is partnership income, so I imagine if the firm has good standing/credit/ assets the partner ( trader) should qualify. But again, I am unsure. surf