Can I Get a Loan If I’m Self-Employed?

Getting a traditional loan when you’re self-employed is easier than you might think. Many online lenders offer loan options for independent contractors and other self-employed individuals. Better yet, you don’t need good credit to get approved for a loan for self-employed individuals. Here are some loan options below that might be right for you:

1. Personal installment loans from online lenders

Personal installment loans are short-term, unsecured loans that give you a lump sum of money. You can then repay the loan in monthly payments, or installments, over the course of a few months or years. The payments and interest rate will be fixed, so installment loans are easy to budget for, and you’re free to spend the money on what you want.

Many lenders will consider factors like credit score, employment history, and income when deciding whether to approve you. So, self-employed individuals can easily get approved.

Additionally, online lenders have lower credit score requirements, so you may still qualify with poor or fair credit. Fill out any pre-qualification applications you find. These don’t affect your credit score and can tell you what loans you could qualify for.

2. Business and personal lines of credit

A personal line of credit (LOC) is a great option for self-employed individuals who work on contract or seasonal jobs. This flexible loan lets you draw on funds as needed, then repay what you owe all at once or over time. You’ll only pay interest on the amount you borrow. The qualifying criteria for a personal line of credit can sometimes be more stringent than the installment loan criteria, but this is a lending option that you’ll find both online and at a traditional bank.

Self-employed individuals can also obtain business lines of credit by presenting proof of income or invoices from accounts receivable. Some lenders allow you to establish a line of credit based on money that’s owed to you. Others offer factoring, which is essentially buying your unpaid credit card invoices.

3. Cash advances

Cash advances are short-term, small dollar loans that give you a few hundred dollars to tide you over until your next payday. You can apply online or in store and will typically repay these loans in two to four weeks, when you get your paycheck. For cash advances, self-employed individuals can search for a lender who will accept deposit records or 1099s as proof of income.

4. Title loans

Title loans are secured loans taken against a physical possession that you own outright, like a car or a boat. The lender will give you a percentage of your car’s value, and you can pay back the loan over time. Better yet, you can keep driving your car as you repay the loan. But keep in mind that if you default, the lender can repossess your car.

The bottom line

There’s a loan out there for just about everyone, and self-employed individuals can easily qualify to get the funds they need. Many online lenders work with self-employed individuals, poor-credit borrowers, and people who just need a few dollars to get through the week. Consider online installment loans, business and personal lines of credit, cash advances, and title loans to find an option that suits your needs.