Almost four in five Manchester creative freelancers say their credit score has fallen since becoming self-employed, despite most becoming more disciplined about paying bills and managing debt.
Research from Loqbox found that 79% had seen their credit score worsen, while 83% said they had become better at paying bills, credit cards and loans on time.
Every Manchester-based freelancer surveyed said they had seriously considered leaving the industry. Sector instability was cited by 39%, while 36% pointed to financial pressure.
The findings have been published as Loqbox partners with Manchester Fashion Week for its Tech Day, which will explore how technology and innovation could help build more sustainable creative businesses.
Financial pressure is also forcing many freelancers to find other ways to support themselves. Some 88% of Manchester respondents said they had borrowed to cover everyday living costs, compared with a national average of 70%.
The same proportion had taken a second job or side hustle, against 74% nationally, while 28% had used buy now, pay later services to fund their first collection or buy equipment.
Irregular earnings are also creating barriers to housing and business finance. More than a third of respondents, 38%, said they had been declined a rental property, with the same percentage turned down for a business loan. Three in ten had been refused a credit card.
Dani Palmer, consumer finance expert at Loqbox, said: “These findings are a clear reminder that creative freelancers in Manchester are expected to run a business, price their work, manage irregular income, and understand tax, long before anyone gives them the tools to do it with confidence.
“There’s more that the government and financial institutions can do to make the financial system more accessible for people like them. In the meantime, we’re focused on giving freelancers the confidence to take small, practical steps towards a stronger financial future.”
The research also identified a financial education gap. Some 81% of Manchester respondents said nobody had taught them how credit worked, compared with 74% nationally.
However, 93% said they now understood what affected their credit score and 85% knew their score or credit band, both above the respective national figures of 73% and 76%.
Kemi Gbadebo, Manchester-based founder of circular fashion label Gbadebo, said: “Nobody tells you how much fashion actually costs to run. I’ve put tens of thousands of my own money into my brand since I started, and looking back, it’s honestly hard to comprehend. There’s no formal education for anything like tax or cost and pricing structures – we’re not taught it at university, so you end up learning the hard way, often after you’ve already been exploited.
“On top of that, the system works against you. The routes other creative sectors rely on aren’t really open to us: most arts funding requires an outcome you can’t sell, which rules out a commercial collection. So you self-fund, hoping the trend cycle hasn’t moved on by the time your collection lands. It really is no wonder so many brands don’t make it past the first couple of years.”
Gemma Gratton, CEO and executive producer at Manchester Fashion Week, said: “Manchester Fashion Week is delighted to partner with Loqbox for our Tech Day. We recognise that building a creative career is not just about talent and ambition – navigating the financial realities of starting and growing a business is a significant part of that journey.
“Our Tech Day is focused on the technology, innovation and ideas that can drive meaningful change across the wider fashion industry, and Loqbox brings that same spirit of innovation while speaking directly to the emerging designers and creative talent we are building this platform for. We’re excited to bring those two worlds together.”
