Can freelancers get a personal loan


A downside of being a freelancer or 1099 worker is that you are fully responsible for business expenses. Paying all the business expenses while managing your costs is difficult. If you are a freelancer or 1099 worker struggling to make ends meet, look into financing and loan options for independent contractors. Freelancers may raise some eyebrows while looking for loans, but getting a loan as a freelancer or 1099 worker is not impossible.

However, you should know the lenders’ requirements before applying for any loan. This helps you qualify and get your loan approved quickly.

Requirements you need to qualify for as a freelancer

Freelancers will face more scrutiny than full-time employees, as freelancers don’t have a fixed monthly income. However, the requirements are like what a full-time worker must face. Here’s a list of required documents or proof you will need to submit:

  • Income proof

Freelancers don’t have a fixed monthly income or pay stubs to submit as proof of payment. Instead, they will need to submit tax statements and business account history to prove they have sufficient funds to repay the loan.

  • Income sources and consistencies

Freelancers don’t always have a steady base of clients. This makes the lenders consider whether you can make the payments on time. They want to see an upward or a continuous curve when they see your client base.

Loan options available for freelancers

There are various loan options for freelancers with decent terms and conditions. Here are some of the best loan options, along with what they may require from you:

  1. Personal loans

For different reasons, personal loans for 1099 employees are a popular choice among freelancers. A personal loan is an unsecured installment loan, meaning the lender won’t ask for collateral. Instead, lenders approve personal loan requests based on the borrowers’ credit score, credit history, and income. Personal loans usually have reasonable interest rates and repayment terms, so they are a safe option for freelancers.

  1. Cash advances

A freelance cash advance allows you to get the money you need if you are a freelancer, self-employed, 1099 worker, or own a small business. You can use it for whatever you need. You pay back the amount you borrow over time.

  1. Small Business Loans

There are a few schemes and programs for small business owners, self-proprietorships, and freelancers to find suitable financing options. You can qualify for a Small Business Administration loan, Paycheck Protection Loan, and even some business credit cards. These options are great if you want the money for business-related expenses only. Avoid them if you want the money for personal expenses.

  1. Payday loans

Payday loans are the trickiest on this list of loan options for freelancers. A payday loan is a short-term loan with a small loan amount cap which you will need to repay before your next payday. Unfortunately, they tend to charge high-interest rates.


Being a freelancer has its perks; from getting more creative freedom over your work to having more control over your working hours, freelancing has many benefits. However, on the flip side, freelancers may encounter some slow months every once in a while. We hope this helps you find suitable loan options if you are struggling financially.

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