Most of the short term installment loans by direct money lenders are granted to salaried individuals who are charged with interest for the instant loan every month based on the paycheck that they receive for their work. If you are working on your own, you may want to know how to get a loan when you are self-employed.
Loans for people who do not draw a monthly salary can be availed if you are able to provide the necessary documents needed. Lenders who give self-employed loans for people with bad credit will often require your personal and tax returns information if you need to borrow 3000 dollars for the self-employed. Sometimes, if you are also taking a large business personal loan for a business venture, you may have to offer collateral to the cash advance lenders for approval.
If you are able to offer an asset, you can usually get low cost personal loans at cheap rates compared to the rates offered for unsecured loans for self-employed people. When you can use a collateral to borrow money, lenders are guaranteed that in the event should you default on the personal loan with easy repayments, they can take possession of your asset and sell it off to offset the debt you owed to them.
As such, if you need to get a cheap loan when you are self-employed, consider the risk of losing of collateral if you are unable to make the repayment in a timely manner. There are some unsecured payday loan lenders who give small loans of $500 to people who are employed on their own. If you are not in need of large sum of money, you may want to consider payday loans for the self-employed for availing short term cash instead.