A Guide to Personal Loans for the Self-Employed
Share this article:
Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
What Are Personal Loans?
You may have funds set aside to set up your business, but need a little extra cash to pay personal expenses until your business starts making a profit. You may be thinking of consolidating debts to better manage your personal finances and free up money in your budget to put toward your business expenses. You may have business items you need to pay for and don’t currently have the money saved up.
Challenges of Getting a Personal Loan While Self-Employed
Getting Around Roadblocks to Self-Employed Personal Loans
Obtaining a cosigner Putting up collateral Applying with lenders who offer self-employed personal loans
Cosigners
Collateral
Lenders With Self-Employed Loan Offerings
Other Methods of Proving Income
Tax statements Bank statements Business ledgers Government benefits Court-ordered agreements
Tax Statements
Bank Statements
Business Ledgers
Government Benefits
Court-Ordered Agreements
General Personal Loan Tips
Gather your paperwork, including the documentation needed to verify your income. Decide how much you need to borrow. Be clear about your verifiable income. List your debts, including balances, monthly payments, and lenders. Check your credit reports. Compare interest rates, terms, and fees. Make the best choice for your situation.
General Personal Loan Requirements
Compare Rates
Get Paperwork in Order
Choosing a Good Loan Option for You
Allows you to borrow the amount you need Has a payback term that works well for your needs Comes with a favorable interest rate Has an affordable monthly payment Comes with no or low fees Has credit score requirements that you can meet
Alternatives to Personal Loans
Home Equity Loans or HELOCs
Credit Cards
The Takeaway
Frequently Asked Questions
About the Author
Share this article: