Jan 15, 2020
The name 'payday loan' itself is derived from the fact that the loan is due on the payday. The first payday loan was not a short term unsecured loan. It was an unsecured loan but with only one repayment. There was no term spanning several months. This has changed over the years. Today, you can get payday loans that have a repayment term of twelve months. The classic version of the loan was not available for business owners or entrepreneurs and self employed professionals. It was not available and still is not for those who do not have a source of income. There should be a source of income and it must be provable for anyone to qualify for payday loans.
There are private lenders who are still might not be comfortable offering payday loans to self employed people. Such borrowers are not necessarily a risky proposition for the lenders but the income and its proof could remain a tad challenging. Lenders prefer to cut their risks in any and every manner possible. Lending itself can be a risky practice, especially when borrowers are seeking money when they are in a financial crisis. Employed borrowers have a solid proof of income. They have a recurrent wage or salary every month, perhaps fortnight or weekly. Self employed professionals might not have this level of security. There is no company that is definitely going to issue a paycheck to them at the end of the month.
Self employed professionals can apply for payday loans. Pay Pony has a vast network of lenders. Some of them may not be too excited to deal with self employed borrowers but others have no such issues. A few lenders are just as forthcoming while dealing with self employed professionals as they are with salaried individuals. The only difference is in the proof of income. If a self employed borrower can substantiate that there is a recurrent income, which can be relied upon, then getting a payday loan through Pay Pony is not only possible but it can be secured on the very same day of applying online.
Employed or salaried people get a pay slip. Whether someone gets paid in cheque or cash, there is always some kind of proof. The pay stub, the account statement or other documentation that proves employment and the salary quoted in the loan application is acceptable. Lenders shall verify this information and decide if a borrower is eligible. This pay slip, stud, document proving employment or other such record is unavailable and also irrelevant for self employed professionals. The only proof that can suffice is the account statement.
Self employed borrowers should provide a bank statement along with their application. The bank statement should be able to showcase that there is a steady inflow of revenue or income. It is true that the entire revenue or amounts being credited into the account may not be profits or net incomes but the reliably steady cash inflow is sufficient to convince lenders to grant a payday loan through Pay Pony.