How To Get A Payday Loan If You Are Self-Employed

Payday loans are issued to people that need extra cash to get by until their next payday, but what if you are self-employed? You may not give yourself paychecks if you own your own company. Instead, you may just withdraw cash as you need it. If you fit this description, but need some extra cash right away, you might still be able to qualify for a payday loan.

How the Process Usually Works

One of the main things payday lenders ask for is recent paystubs. Not only do these prove that you earn a certain amount of money on a regular basis, but they also prove that you have a job. Without paystubs, it may be harder to prove that you earn money.

Once the payday lender receives a person's application, paystubs, and any other necessary documents, the lender will review everything and will determine whether to give the loan or not. If the application is approved, the lender will base the loan amount on:

  • The amount of money the person requests.
  • The amount of money the person earns from his or her job.

Because self-employed individuals do not always receive paychecks, this factor disrupts the normal process, but there are options.

Other Options for the Self-Employed

If you really need a fast loan like this, you may still be able to get it even if you do not have paystubs. Here are three different options to look into, and one of these will probably work for you.

Find a Payday Lender that Specializes in This Area

There are certain lenders around that specialize in giving loans to people that are self-employed. By finding a lender that specializes in this, you will most likely be able to get a loan approved.

Look for a Lender that Does not Require Income Verification

There are also lenders around that advertise that they do not verify income of applicants. With this option, you could simply write in the amount of money you make on the application, and you will not have to worry about proving your income.

Ask the Lender if there are Other Ways to Prove Income

If you are having trouble with the first two options, there is a third option that often works. You can ask any payday lender if you can prove your income in other ways. The lender might agree to this, and you might have to prove your income by submitting:

  • Bank statements – your bank statements reveal a lot about your finances. They will show how much money you deposit each month, and they will show how and where you spend your money.
  • Financial statements – you might also be asked to give current financial statements to the lender. An income statement is one of these, and this document shows your company's income and expenses for a certain period of time.
  • Taxes – you may also be asked to submit one or two years of prior tax returns to prove that you earn money consistently.

The other thing to consider is offering a post-dated check for the loan. If you give the lender a post-dated check, or approval to debit the amount out of your account, the lender may have more confidence with issuing the loan. This is generally a requirement for anyone that takes a payday loan, and it works well for two reasons:

  1. The payday lender, such as Money 4 You, has access to the borrower's account.
  2. The borrower will incur fees from the bank, and from the payday lender, if the payment doesn't go through.

Using these tips may help you get a payday loan if you are self-employed, but you should realize that there are even payday lenders that are willing to give loans to people that are unemployed. If you need money right away, look into getting a payday loan. Once you are approved, you could have the proceeds within 24 hours, or sooner.