Payday Loans for Self-Employed with Bad Credit
If you own your own business, even if it is just yourself, you can have cash flow problems. And these situations are even more difficult with the COVID crisis. Millions of people cannot get conventional personal loans or another credit card. When you need money quickly, you may consider short term loans as an alternative. If you find yourself in this position, read on to learn more.
What are payday loans for self-employed?
Payday loans for self-employed are short-term loans that you are usually expected to pay back on your next pay date. Lenders before lending to self-employed individuals will want to know if you have a consistent income, and it will not matter even if those payments come from your own company. You just need to show your proof of income.
How does a payday loan for self-employed people work?
Payday loans are available in small amounts, normally $500 or less, depending on where you live. There are also longer-term loans called installment loans that are for $1,000 or more and have terms from 6-12 months in many cases. It is more difficult to qualify for an installment loan due to the larger amount and longer payback period.
Lenders review your bank history if you are self-employed. Payment plans are regulated by each state as well as fees and interest rates. Check your state website if you want to learn more about regulations in your area. When self-employed, you may be asked for additional documentation prior to getting loan approval.
Am I eligible for a payday loan if I am self-employed?
Payday and other short term lenders are more flexible with their lending criteria. Banks and other traditional lenders take weeks or months to review a loan request. To be eligible for a payday loan for self-employed online, you will need to show proof you have a regular income. This is usually done by providing bank statements for previous months, often 2-3 months.
Can I get a self-employed payday loan with bad credit?
There are payday loans for self-employed with bad credit. And payday lenders do not check your credit with the big 3 credit bureaus. Lenders are more concerned with your ability to repay the loan as they are very short-term loans, one month or less in length.
How do I show my proof of income if I get paid cash?
Your bank records will show deposits and expenses, and if you deposit cash payments, these will show in your history. You will need to show at least $1,000 in income monthly for recent months to qualify for a payday loan for self-employed individuals.
Related Article: Emergency Loans for Unemployed People
Consider This, Before You Take Out a Short-Term Payday Loan
Payday and installment loans have high-interest rates. Payday loans are fee-based. You should be cautious before taking out a high fee/interest rate loan. Borrowers have found themselves taking out additional loans when they were unable to pay back the first loan when it was due. Consider other alternatives before you decide to get a short-term loan.
How to Apply for Self-employed Payday Loans at CashOne
CashOne has been helping self-employed people across the country for more than a decade to get the emergency cash they need. When requesting a loan from CashOne, you just need to fill out our easy loan request form in 1-3 minutes and provide the documentation required for getting the loan approval. We then connect you with a direct payday lender that can potentially lend that amount to you, whether on a payday loan or an installment loan.
However, you should know there are no guaranteed payday loans for self-employed people or anyone else for that matter. All requests for loans are checked by lenders before approval, and not everyone will qualify for a payday loan even with the easier criteria it requires.
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