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Top 4 Reasons to Get Payday Loans for the Self-employed

[Mar 8, 2009.]


According to the Center for Ethics and Entrepreneurship, an average 2,356 people go into business for themselves every day. These ventures account for approximately 78 percent of businesses and $951 billion in receipts in the US each year. The problem here is that these entrepreneurs are all too often excluded from traditional lending opportunities. Because they don’t receive a W2, banks and credit unions are reluctant to extend fast credit offers in times of need. And that’s why payday loans for self-employed serve a critical purpose. Here are four good reasons why taking advantage of this alternative financing form is crucial for self-employed individuals.

1. Stated Income Doesn’t Carry the Weight. Before the looming credit crunch, traditional lenders would allow loan applicants state their income as opposed to showing it on paper. As anyone in business for themselves will tell you, self-employed income can be tricky to calculate--particularly if the business holds inventory or collects payment sporadically. As credit tightened, lenders began requiring applicants to show actual proof of income from tax returns. This left many self-employed professionals out of the loop.

2. Little to No Collateral. Self-employed individuals in businesses with little to no collateral are also at a disadvantage. For e-commerce merchants, this is another tricky catch. The new generation of Internet-based businesses often earns money through information marketing, blogging and podcasting, or affiliate ventures. This means there’s nothing tangible to off-set the risk of a loan. Payday loans for self-employed require little more than proof of income for acceptance, which is much more universally inclusive.

3. One Step from Unemployment. Those who are in business for themselves know one constant formula. If they’re not working, they’re not earning. A PRLog press release on self-employed payday loans reveals that business owners that share daily operations activities can cover for one another in the event of sickness ore other time-stealer. Those professionals who go it alone are in much dire straits. Payday loans for self-employed can step in if the earning process is interrupted for one reason or another. Quick cash can be a life-saver during emergencies.

4. Never Enough Spokes in the Wheel. The last, and perhaps best, reason to keep payday loans for self-employed in mind is that one can never have too many options for business or emergency financing. Some self-employed individuals buck the trend and are able to secure traditional means of financing. Payday loans are just another way to remain solvent in an ever-challenging economic landscape.

The best time to find out what a payday loan can do for businesses is before it’s ever needed. Contact payday lenders and get a feel for what they offer should the need ever arise for instant financing.

The Center for Ethics and Entrepreneurship, Recent Statistics about Self-Employment
PRLog, No Income Proof Self Employed Loans


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.

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