Best Payday Loans for Self-Employed Individuals

Best Payday Loans for the Self-Employed?If you’re self-employed you might not think that you can get a payday loan, since you don’t necessarily receive a paycheck. But in many instances you may still qualify for a loan, you will simply need to provide different documentation than those that have a typical job.

Being self-employed can be hard, and if you run into a jam, you have a lot riding on getting out of that jam. The problem is since you can’t prove your source of income, the way you can with a 9-to-5 job, these lenders are a little more reluctant to loan their money to you. Even if you bring in recent paid invoices showing that you are making more money now, they still will not be able to use that as proof of future income.

The Payday Loan Process for Self-Employed People

instead of bringing in a pay stub, you need to bring in your tax forms from the previous year. What the payday loan company will do is calculate your average biweekly income, and use that to determine what loan amount you’re eligible for. What this means is if you just started your own business, and don’t have tax forms from the previous year, they won’t be able to help you. Also, if last year was your first year and you didn’t make very much money, but this year you’re making more money, they’re going to calculate a lower loan amount then they would if they could calculate this year’s average pay.

if you do have your forms from last year, you’ll also need an open and active checking account so that you can write a check for the loan amount, and it also serves as a place to withdraw your payment from on your due date. Of course there are some lenders that require that you bring in cash on your due date so that you can take care of your loan in person.

Becoming More and More Accepted
There are many lenders that are popping up that will be more accepting of you, and will let you bring in the last three months of your bank statements to show that you are receiving regular payments from your business. These lenders are catering to the growing number of self-employed individuals that own their own small business, and need a little financial help to get through till the next payday.

Keeping Good Records
If you’re self-employed you should be sure to keep accurate records of all the business you conduct, including a profit and loss statement so that you have good data that you can show companies in case you ever need to take out a loan. There is some good accounting software out there that will help you manage your books, so you don’t have to pay a bookkeeper to do it for you.

Working for yourself does have its advantages, but you are in the minority as far as how you get your income. Most people rely on employer and a regular paycheck, so payday lenders are gunning for the largest market so they can do the most business. That’s why it’s probably best to go with a lender that specializes in business payday loans, or loans for the self-employed.

How to Find the Best Payday Loans for Your Situation
What you want to do is avoid many of the online lenders that are promising you up to $1500 even if you are self-employed. You’ll end up getting horrible rates, and large fees in order to take this money out, and paying it back can be rough.

You’re not alone when it comes to being self-employed and needing some money to make ends meet. Braving the world on your own takes a lot of guts, and it requires a steel stomach not knowing if you’ll be able to keep your business going. But if you think about it, those with jobs and employers are just as uncertain about their future, and maybe moreso since they don’t have any experience being on their own and relying on themselves. So don’t panic too much about finding a loan in your time of need, there are plenty of lenders available that will be able to help you out, it’s just a matter of avoiding the lousy ones.

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