Payday loans for gig workers

People who choose the path of gig workers as a way of life deliberately refuse to visit the office. Often, they stand against the official type of employment.

Remote self-employment can bring good income if the work process is properly organized. However, not everyone manages to switch to a free work schedule without financial losses. In this situation, the question of how to get a payday loan to an employee is of particular relevance.

As a rule, it is during the transition period that many have a need for additional money. Gig employees turn to banks to get payday loans. Despite the lack of a proven source of income, many applicants can expect to get a payday loan application approved before they are paid, especially if it’s a small loan like the 500 dollars one from Let's take a closer look at whether a gig employee can get a payday loan and what requirements one must meet.

Gig employee lending: What type of employment do you have?

The first thing a lender pays attention to is the type of employment. The likelihood of getting a payday loan will very much depend on the status of the employee. Let's take a look at what type of employment a gig employee can have:

  • Employment under an employment contract requires a proven source of income. Although some employees work online, all labor laws apply to them. Such a scheme of labor relations is clear to the bank and does not raise doubts about the issue of obtaining a payday loan;
  • Self-employment. This status can be obtained by anyone working without the involvement of hired employees. Also, the income cannot exceed 2.4 million per year. Since this taxation regime implies self-paying taxes based on the amount of income, a self-employed person can always confirm financial solvency required by the bank;
  • An individual entrepreneur applying a simplified taxation regime is obliged to keep tax records and submit all the necessary declarations. The presence of such documents makes the employee's gig a solvent person with whom you can conclude a payday loan agreement;
  • An unemployed worker. Banks are less willing to work with such clients. The main confirmation of the payday loan client's solvency in this case is also liquid collateral, for example, real estate.

A proven source of regular income increases the chances of getting a payday loan to employees. However, the amount of income from which the payday loan is calculated is equally important.

What types of loans can a gig employee count on?

If you have a confirmed source of income, you can count on any type of loan including a payday loan. However, if there is no such document, then only the collateral will save you.

Types of loans that a gig employee can count on:

  • Mortgages for employees, secured by real estate;
  • Car loan, secured by the car itself;
  • Cash consumer loan;
  • Freelance credit card;
  • Payday loan.

If we consider the situation with the lack of documentary evidence of the solvency of a remote employee, then most likely you can get approval for a payday loan and issue a credit card to the employee. In the issue of approving an application for a payday loan, the borrower's credit history plays an important role. If you repaid the loans received on time and also kept money in a bank account, then the likelihood of approval will be quite high.

Where can a gig worker get a payday loan?

First of all, you need to apply for a payday loan to the bank or credit organization where you have a current account. However, it may happen that you are not satisfied with the terms of the payday loan. And then you will have to look for luck on the side. This process can take a lot of time. Therefore, referring to reliable reviews, you can make a list of the most loyal banks where any employee can get a payday loan (even without the formation of an individual entrepreneur).

As a rule, if in the conditions of obtaining a payday loan there is no clause on mandatory confirmation of income. This does not mean that a gig employee may not have a job. If you make money by renting out real estate, then you can submit an agreement with the tenant to the bank where the monthly amount of payments is prescribed. Self-employed borrowers usually submit checks or certificates of completion to the bank.

Basic requirements for gig employees when issuing a payday loan

Each credit institution puts forward the list of requirements, but they are all united by the following points:

  • Citizenship and permanent registration;
  • Documentary confirmation of the source of income;
  • The candidate must be at least 18 years old;
  • Availability of guarantors or liquid collateral;
  • Positive credit history and no criminal economic crimes record.

Such a category of borrowers as gig workers most often resorts to credit cards. Thus, many of the listed positions disappear automatically. In any case, when doing freelance or other non-permanent activities, you should collect all possible documents in advance that can confirm your income. Ask your employer to sign a contract, pick up receipts, print out statements from your personal account.

How to increase your chances of getting a payday loan?

To make your loan application more attractive to the bank, use the following tips:

  • When filling out the questionnaire, try to describe the type of your work activity in as much detail as possible. You must convince the bank that you are doing this job on a permanent basis and have a stable income;
  • As a confirmation of your solvency, you can attach to the questionnaire a statement of payments received to your personal account or an electronic wallet. Your chances will increase if you apply to several banks at once. This will also allow you to compare the terms of lending and choose the most profitable from them in case of loan approval;
  • Find a suitable guarantor in advance with a clean credit history. It will not be superfluous. You also need to take care of the cleanliness of your credit history. There are many ways to help correct the financial mistakes of the past;
  • Ask the bank for a payday loan an amount that will correspond to your income. As a rule, the amount of the monthly loan payment should not exceed 80% of your budget. In some cases, if there is a guarantor, this limit can be increased;
  • Never enter false information in the questionnaire, for example, about non-existent employers, and do not inflate your income with fake certificates.

In the aggregate, the fulfillment of all points guarantees gig approval of the loan to the employee. An employee who works remotely and receives a decent amount of money per month is an attractive client for the bank. High competition between banks forces lending institutions to fight for each borrower. It is thanks to this trend that many freelancers have acquired the opportunity to obtain a payday loan regardless of the source of income.

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