Five Tips And Ideas For Finding A Payday Or Other Emergency Loan If You Are Self-Employed
A payday loan is a short term loan, typically used by people who need money quickly. In most cases, payday lenders do not check your credit history. Instead, they guarantee repayment by setting up a direct debit from your bank account on the date of your next payday.
However, if you are one of the 10 million Americans who are self-employed, you likely don't receive regular paychecks, and as a result, you may be wondering if it is even possible to get a payday loan.
In many cases, the answer can be yes, but you need to be creative. Here are some tips to help you access cash:
1. Look for a lender who works with self-employed people.
Some payday lenders do not work with the self-employed. Rather, they only work with borrowers who have paycheck stubs and verifiable employment. However, that is not the case with every payday lender. If you are self-employed, you need to start by looking for payday lenders who advertise loans specifically designed for the self employed.
2. Collect records of your earnings and bank statements.
An individual with a job can just use his or her pay check stub to prove his or her income, but for a self-employed person, the task is a bit harder. To help you prove your income, gather records and be prepared to show them to the lender.
Your records should include bank statements listing all of the deposits you have made over the last few months, and it should also include a profit loss statement. A profit loss statement is just a list of your income minus your business expenses to illustrate how much you earn each month or whatever period of time you are working with.
3. Look for lenders who fund directly into your particular account.
In some cases, the bank or online payment service you use for your business may offer short-term loans, cash advances or direct deposit advances. Like payday loans, these loans are based on your earnings (as indicated by the average deposits made into your account), and approval is not based on your credit score.
If you are approved, the bank or online payment service puts the money into your account. Then, to repay it, your bank takes a portion of your next direct deposit, or your online payment service takes a certain percentage of your sales or payments until you have repaid the entire loan. If your financial institution offers this type of service, you may be able to bypass the traditional payday loan for this similar type of product.
4. Explore other borrowing options.
If you cannot find a traditional payday lender who is willing to work with a self-employed person and if your bank account or online payment service won't give you a loan, it's time to start exploring other options. If you have lackluster credit, a peer-to-peer lending service may be one to explore.
These services typically take place online. You create a profile and explain why you need money. Then, people with money bid on the chance to lend you money. You select the loan and interest rate that works for you. Finally, the loan is funded, and you pay it back as usual.
5. Call a friend.
If you cannot find an emergency loan through any other venue, it may be time to call a friend for help. If you have a friend, a spouse, a relative or anyone else with a job, ask if they are willing to get a payday loan on your behalf. They take out the loan in their name, but you make a private arrangement to repay them the loan and the fees as soon as you have the money.
The loan does not show up on their credit report so it does not affect their future ability to borrow money.
For more tips on getting approved for a payday loan when you are self-employed, contact a payday lender by visiting a site like http://www.paydayexpresscashadvance.com.