Payday Loans for the Self-employed: What to Without a W2

[Oct 6, 2009.]

 

According to Kelly Spors, blogger for The Wall Street Journal, entrepreneurs and self-employed individuals may face several unique challenges in the coming year. These include rising bankruptcies, disappearing venture-capital and angel investors, and looming foreclosures. But payday loans for the self-employed might just be the antidote.

The Self-Employed Title Becomes Viable
Traditionally, self-employed individuals were forced to endure a stigma associated with their profession. As you might have guessed, obtaining payday loans was difficult without a verifiable employment status. However, that mode of thinking is coming full-circle. According to Susan Duey of the Best Syndication blog, the prevalence of telecommuting and the surge in online enterprises has given the concept of self-employed new meaning.

Payday loans lenders are looking for a working checking or savings bank account, which most self-employed individuals satisfy. And because payday loans are signature-based financing vehicles, self-employed professionals are finding it increasingly easy to obtain one in dire financial circumstances.

Showing Income Is a Plus
Being self-employed means not having a tax form W2 from an employer. While that used to be a problem, there has been a recent shift in thinking. Payday loans lenders are often satisfied with some proof of consistent income. This could be financial records--such as receipts--or other business records that prove daily operations. Also, this proof only needs to go back a few weeks, as opposed to the several months required by traditional loan vehicles.

Self-employed individuals can also show the promise of future sales in order to access payday loans. This might include a statement of partnership with another company in an adjacent market or a contract secured for future work. Lenders of payday loans for the self-employed take into account a variety of situations with regards to income and payback potential.

Exclusive Self-Employed Payday Loans
In an age of specialization, there is a segment of the payday loans market that caters specifically to self-employed individuals. This means they’re sensitive to your particular financial situation and ready to help. Lenders understand that potential borrowers may have their credit tied up into business launch, so credit worthiness is rarely a factor.

Also, those small-businesses that operate on a seasonal schedule and are particularly prone to financial surprises can find welcomed respite with payday lenders. For example, businesses that do most of their sales during Christmas, Valentine’s Day or the summer months can have that factor taken into consideration.

 

About Author:

Kelly Richardson is a freelance writer, marcomm consultant and digital entrepreneur. He’s written content for Fortune 500s Google, Yahoo!, Microsoft and Wells Fargo. Find out more about him at kellyrichardsoncopywriting.com.