Payday Loans for Self Employed

When you need to cover rent, household bills, or unexpected emergencies, turn to payday loans for the self-employed. Thanks to Quidable, you can request to connect with short-term payday loan solutions for your needs.

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Payday Loans for the Self Employed

You may be eligible to receive a fast online payday loan even if you are self-employed, depending on the lender and your specific situation. For example, if you can present proof of a viable income, a lender may consider your application, and you may be able to secure a loan.

Does a Bad Credit Score Matter?

It is always an uphill battle trying to find a loan with bad credit. Many banks and traditional lenders will reject self-employed bad credit score holders.

Companies that advertise payday loans from direct lenders with no credit checks are usually making false claims. All lenders typically perform credit checks. However, payday lending companies may use alternative eligibility checks and not solely rely upon the self-employed borrower’s credit score.

Payday Loan Requirements

Eligibility requirements vary by lender, but may include the following:

● You must be at least 18 years of age.

● You are a resident of the U.K.

● You must present proof of income.

● You must provide a current bank account.

The lender may also ask for additional financial documents to verify your income.

What Can Self Employed Personal Loans Be Used for?

Emergency cash can help you meet your needs, whatever they may be. Some of the most common reasons that people take out shorter-duration loans include:

● emergencies

● home repairs

● debt consolidation

● vehicle repair

● unexpected bills

Please note that lenders may have restrictions on loan use.

How Much Would You Like to Borrow?

Loan Types Best Suited for Self-Employed People

Self-employed individuals can sometimes find unsecured loans, secured loans, and guarantor loans.

● Unsecured loans are not collateralized nor protected by a guarantor. Examples include credit cards, personal loans, installment loans, and payday loans.

● Secured loans are backed by collateral, such as a car, property, or jewellery. If the borrower fails to pay back the loan, they could lose their asset. Examples include car title loans, pawn shop loans, and secured credit cards.

● Guarantor loans are like secured loans. However, instead of securing the loan with collateral, the borrower presents a guarantor who will assume responsibility for the debt’s repayment. If the borrower fails to make repayments, the guarantor is held responsible.

Benefits of Working with an Online Direct Lender

Here are some of the top reasons why self-employed individuals may opt for shorter-duration funding:

● Online loans are easy. Payday loan applications can be completed within 15 to 60 minutes, in some cases. However, self-employed borrowers should note that instant payday loans are not possible and should not expect loan funds immediately.

● Instant communication. Working with a direct lender can offer you a certain level of transparency that may not be available through brokers. With online payday loans, you may receive cash from the lender directly.

● A direct lender can be more flexible. Payday loan requirements may be more flexible than conventional lending systems. This can make it easier to find financial relief for self-employed individuals who may not have access to traditional loans or lines of credit.

FAQ

Can I Get a Loan If I am Self-employed?

Self-employed applicants may qualify for a payday loan if they have a regular source of income and can prove that they can afford the scheduled repayments. Typically, the lender will require financial statements to verify this information.

How Much Can I Borrow?

The amount a person can borrow depends on the borrower’s circumstances, qualifications, and the lending company’s offers. Personal qualifications typically include income and credit score. In the UK, loan companies may offer payday loans from £50 to £5,000, and the repayment period can range from three to 36 months.

Can I Get a Loan If I am Self-Employed and Have a Bad Credit Score?

Payday lenders might check more than a person’s credit score. For example, some look at the borrower’s income when determining eligibility. Hence, it may be possible to get a payday loan for bad credit.

Will I Raise My Chances of Approval with Collateral or a Guarantor?

Yes. Securing your loan with collateral or having a guarantor co-sign your loan may increase your chances of approval. You may also qualify for better terms and a lower interest rate. Keep in mind that with collateral you will never get a loan amount equal to the value of the item you use to secure your loan. The lender will need to recoup the cost of lending if you default on your loan, and so they will likely offer only a fraction of the value of your collateral.

When Will I Receive the Loan Amount if Approved?

Payday lending companies may transfer the money into your bank account in as little as one business day. Although transfers are done quickly, failure to provide the necessary documents may prolong the process. Therefore, it is important to review all the requirements to ensure a smooth process.

How Do I Repay My Online Payday Loan?

The lender may automatically withdraw the loan amounts from your bank account on the loan’s due date. Although automatic withdrawal is the most common repayment method, some lenders may be willing to offer other forms of repayment. These may include repayment via check, credit card, or cash. If you do not have a checking account or would like to use an alternative form of payment, it is best to consult with the lender before applying.

What Happens if I Don't Pay Back My Loan on Time?

If you don’t pay your loan back on time, the lender may offer to roll over your loan. If the lender does not offer extensions, you may be subject to additional fees, such as a late payment fee. Additionally, missed payments can negatively affect your credit score. If the lender reports your payments to the major credit bureaus, a default can significantly lower your score. Lastly, the lender may send your account to a collection agency. If you know that you will miss a payment, it is best to contact your lender immediately. They may be willing to offer you a flexible extension.

Bottom Line

As noted, self-employed individuals who can prove that they have a reliable flow of income or steady capital may be eligible for a payday loan, depending on the lender.

Self-employed individuals may find themselves in precarious financial situations that necessitate immediate funds. When that’s the case, an online payday loan may be a source of fast cash.

Ready to Get Started? Apply for Up to £5,000

Apply Now