For most people, freelancing or working as an independent contractor makes more sense. They can take complete control of their needs and can enjoy the privilege to be their own boss. In the USA alone, there are more than 10 million active freelancers who are self-employed. Especially during the pandemic when many people were laid off, people had the realization that proper job security does not exist in our society, and having a personal gig that you may turn into a full-fledged business, later on, can be an enticing prospect.
But, being self-employed comes with its own set of drawbacks. Apart from the usual problem of finding new clients, you also have to deal with financial issues that may require you to seek urgent loans. But, our society hasn’t been too kind to people who try to do something independently. Getting a personal loan involves a mountain of paperwork and often a good credit score. So, what is the solution to your urgent money problems? Let’s find out.
Guaranteed payday loans are short-term loans that require no credit check to get approved. They are meant for short-term cash crunch and are designed to fill the gap between the time you need some urgent cash and your next payday.
Payday loans do not require to pledge collateral to the lender, making it one of the safest and most accessible loans to get approval for. Loans are usually associated with tons of paperwork that needs to be filled out, but payday loans are different. You just need some basic requirements to get the loan approved, like your proof of citizenship, proof of stable income, and a bank account where the money will be e-transferred if approved.
Few lenders conduct the whole process online and can get a loan approved within 24 hours of applying. So no matter what, you get the money sent directly to your account.
Payday loans are usually short-term loans, and you often have a 14 to 30 days period to pay off the loan. With such rapid processing and approval, a lender must be confident that you can repay the money in due time. As there is no credit check or collateral, this is a relatively risky loan for the lenders, and therefore proof of stable income becomes very important.
Can you get a payday loan approved if you are self-employed? Yes, you can, but in addition to the requirements discussed, you also need few additional documents as proof of stable income.
A tax return is the most widely and accepted document as proof of stable income when applying for a guaranteed payday loan. Overall, tax returns are authentic and detailed information about your income and usual expenses. That gives the lender much-needed insight into your finances that will be necessary to get the loan approved. So note that most lenders will request two to three years’ tax return to have an in-depth idea of your finances. So if you are a new taxpayer or just getting started, your chances of getting a loan approved through these documents may be slim. Do note that the lender just wants to be sure that your income is good enough to pay off the outstanding loan on due time, so if they are not entirely pleased with your document, they may ask for additional proof in order to get the loan approved.
If you are doing a business all by yourself, the lender may request a Schedule C Document before approving the loan. A Schedule C Document is a detailed breakdown of the expenses and profits you make in your business, and having a look at this document can give an overview of your overall business. The schedule C documents confirm your claim about the status of your business and are often regarded as solid proof of your financial situation.
If you are a freelancer, you are unlikely to have a schedule C document as it is not a business. For folks involved in professional services like freelancing, lenders may request a 1099-MISC Form to prove their income credibility. 1099-MISC Form is used whenever a freelancer receives payment of more than $600 for their services. This makes the 1099-MISC Form a great tool for lenders to check the income of freelancers before getting the loan approved.
Last but not the list, when applying for a payday loan as an individual contractor, you must show a sufficient period of bank solvency report. This will show a history of deposits and the income you made over time to justify if you can pay off the loan you are seeking. Do note that it is entirely okay if the end-of-month balance is zero, as you may well withdraw the amount and invest it somewhere else. What potential lenders want to see is a steady income. As long as you are making money every month, you are good to go.
The Bottomline
The world is going through a difficult period due to the pandemic. The economy is shrinking, and many people are losing jobs due to it. Due to this, the number of self-employed workers has skyrocketed, and during urgent cash crunches like a medical emergency or an urgent home improvement, payday loans are the best solution. This is by far the fastest and most hassle-free loan to get approved for. But loans for self-employed people are hard to come by, especially when the lender is unsure about the prospect of if they can pay off the loan. But with these additional documents, the chance of getting a loan approved increases significantly. But do not that enders process each case on its own merit, so to get a free quote and a complete breakdown of interest rates and fees, head over to paydayLv website and apply today.
