Today, there are over 27 million entrepreneurs in the United States.
As an entrepreneur, though, you don’t always have access to the money that you need. This is especially true when you’re first starting out.
Luckily, there are payday loans for self-employed professionals out there for extra financial support.
Not sure where to start? Don’t worry, we’ve got you covered.
Let’s take a look at everything you need to know.
So, What Is a Payday Loan?
As the name implies, these are short-term personal loans that are meant to bridge the gap between paychecks.
Additionally, since these loans are meant for people with fluctuating levels of income, it’s often far easier to secure them than a long-term loan. So, individuals with poor credit (or even no credit) won’t have too much trouble getting the money they need.
For the Self-Employed
As any entrepreneur knows, things always work a bit differently who those who are self-employed when it comes to finances.
So, even though you’re applying for a short-term loan, you’ll still need to provide…
Proof of Income
As a business owner, you likely aren’t getting a regular paycheck. It might have even been weeks since you last got paid from a client.
Fortunately, most payday loan lenders are flexible when it comes to this.
As long as you’ve been providing invoices to clients for your products or services, you’ll be able to show that you can generate mone to pay back the loan.
Generally, you’re looking at a period of less than a month when it comes to your repayment plan. Many lenders also have strict payment requirements, such as making a payment once every three days.
So, it’s vital that you can pay back your loan amount within this time period while also following the payment requirements.
If your company is prone to receiving large payments on an infrequent basis, you may be able to negotiate with your lender, though.
You can check out what Bonsai Finance has to say to learn more.
Lenders make money by charging interest on the money that they provide to borrows. Since entrepreneurs seeking payday loans often need this money to keep their business alive, some loans have substantial APRs.
Make sure to browse different lenders before making your decision. Some may charge you 250% APR, but others may have an APR of close to 1000%.
No matter which lender you choose, though, expect to pay a significant amount in interest as a tradeoff for the convenience of securing a large sum of money so quickly.
Payday Loans for Self-Employed Individuals: Final Thoughts
It can seem difficult to find the right payday loans for self-employed individuals, but it doesn’t have to be.
With the above information in mind, you’ll be well on your way to getting the money you need when you need it.
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