Simplifying Self-Employed Financing: Installment Loans with Flexible Funding

There are plenty of benefits to being self-employed—you get to set your own hours, choose the people you work with, create your ideal work environment, and even make income without a ceiling.

However, there are also a few challenges that every self-employed individual would have to face. And a lot of them concern the financial aspect of the job. Your check will most likely fluctuate from one month to the next, you won’t be able to use sick leave, and so on.

3 Financial Challenges of Being Self-Employed

How to deal with these financial challenges and at what point in your career would it be worth considering applying for an installment loan? Keep on reading to find out.

1. Your Income Varies from Month-to-Month

Income ups and downs are part of being self-employed. Unfortunately, there will most certainly be months when your work is going to slow down, and you will be left with a much lower income than you expected.

Variable income is one of the main reasons why self-employed individuals often experience stress and anxiety, as, in their case, a biweekly check is replaced with uncertainty about when the next check will be coming and exactly how much they will earn.

2. Navigating Taxes Solo

Self-employed individuals have to calculate and pay the self-employment tax. You would also have to figure out how much of this tax you can deduct. This means that you have to keep track of business-related expenses and find a way to store all this data.

3. No Vacations or Sick Leave

Though, in theory, you can take a day off whenever you want if you’re self-employed, in reality, you might find it challenging to allow yourself to rest for a few days.

A lot of people simply won’t be able to relax, as they’ll be constantly thinking about all the work-related things that they could have done.

A similar situation happens when flu attacks. You would either have to lose money or work through the pain.

How To Deal with Financial Challenges If You’re Self-Employed

Learn to manage a variable income. When your check fluctuates, budgeting can become extra difficult. But if you keep this trick in mind, you should be able to cover all your needs every single month, no matter how much you end up earning.

You should always assume the worst for budgeting purposes. This means that if you earned $2,000 in your worst month last year, you should aim to live on this $2,000 of income only. Always plan your budget as if you won’t be able to make more than that sum, and if you do end up receiving a bigger check, use the money as an instant savings opportunity (to set up an emergency fund, for example). Such a strategy will help you avoid stress during the ‘bad’ months, as you’ll know that you have your basic needs covered in any case.

Set aside funds for the IRS each month. If you manage to make taxes a line item in your budget, you won’t have to worry about finding the necessary sum when the annual tax-filing deadline approaches. As a general rule of thumb, you might want to set aside 30-40% of your earnings. By the way, if you’re completely new to the world of self-employment, it might be worth hiring a tax professional who would either explain the whole process to you or who would take care of all the paperwork for you.

Earn paid sick days. This might sound a little crazy, but if you’re self-employed, you would have to plan for your time off (including sick days). Such a strategy would allow you to not feel stressed out about the non-earned money and finally have a well-deserved rest. If you’re planning to go on vacation, make sure to work extra hours in the weeks leading to your days off. 

For the days off that you can’t schedule, you should establish an emergency fund. A traditional reserve fund has to have anywhere between 3 and 6 months’ worth of living expenses. Use the money that you have set aside to cover your sick days, but don’t forget to add the missing cash back into the fund once you have such an opportunity.

Consider applying for an installment loan. Even though all the pieces of advice mentioned above can be extremely helpful, not all self-employed individuals will manage to follow them. You might simply forget to set aside enough money to pay the taxes or you may not have established an emergency fund yet, but that won’t stop a disaster from striking. If there is an urgent bill that you need to take care of, then you might want to think about going for an installment loan. 

How To Apply for an Installment Loan If You’re Self-Employed

A self-employed individual might face a few difficulties when applying for a loan. One of them is proving his or her income.

If you’re self-employed, you are most likely not receiving any pay stubs that show how much you earn regularly. So, you would have to find other ways to show the lender that you do earn enough money and that you will be able to pay off the loan.

This does not mean that a self-employed individual can’t qualify for a loan. There are just a few things that you would have to keep in mind:

• The lenders might start asking you questions about your business. They may also request some financial records to verify your income, so be prepared for that.
• You can use tax returns and tax transcripts to prove that you have a steady stream of income. Some lenders might request several years’ worth of tax returns and they may take into consideration not your gross income, but your net profit.
• Bank statements can also be used to prove your creditworthiness. If you have a bank account where you’re regularly depositing your income, then you shouldn't experience any challenges during the application process.
• Lenders may review not only your income but also your credit score. And even though you might be able to qualify for some loans even with a poor score, your chances will drastically increase if you have excellent credit. So, don’t forget to work on improving your score.

Proving your income shouldn’t be too difficult as long as you have the necessary documents.

If you’re not sure what papers to provide, you can always contact customer support at Simple Fast Loans. There is a convenient live chat where you’ll get all your questions answered in the shortest timeframe. Or you can always call the company directly.

To apply for an installment loan, you’re also going to need a government-issued photo identification (like your passport or driver’s license, for example), your Social Security number, and the routing and account number of the checking account where you tend to deposit most of your income.

The Application Process: A Step-by-Step Guide

The representatives at Simple Fast Loans know that you need to receive the much-needed cash as soon as possible. That’s exactly why the whole application process is very fast and simple.

And even though many people might think that self-employed individuals have all the time in the world (which is not true), you wouldn’t have to spend precious hours driving to the store.

In fact, the application process can be completed online, from the comfort of your office or house.

1. Submit the online application. You would be asked to provide some basic information, as well as the information from your ID and the routing and account number of your checking account. If you’re not sure what documents you would have to provide as a self-employed individual, don’t hesitate to contact Simple Fast Loans directly. The friendly staff members would be happy to guide you through the process.
2. One of the best things about doing business with Simple Fast Loans is that you’ll get the loan decision in a matter of minutes. And if the decision is positive, you will receive a loan package.
3. Next, you would be asked to e-sign the loan agreement. This can be done through the website directly or via a link that you’ll receive in your email. The e-sign process is as simple as it can be – just follow the instructions on the screen and click on the spots where your signature is required.
4. Your loan will be funded the next work day. Or you might receive the money on the same day if you have managed to get the loan signed before 2 PM.

Benefits of Applying for an Installment Loan

If you apply for an online installment loan offered by Simple Fast Loans, you can take advantage of quite a few benefits.

• The lender is ready to consider any type of credit. So, even if you have a bad score, that won’t necessarily prevent you from qualifying, as other factors will be taken into account as well.
• The whole process will be completed online. Your income, identity, and bank account information will be verified electronically. You wouldn’t even have to leave your house to sign the papers and receive the cash – the loan agreement can be e-signed and the loan amount will get transferred directly to your bank account.
• The lender is a nationally-recognized, fully-licensed company with a 4.8-star Trustpilot rating (based on nearly 6,000 reviews). Furthermore, Simple Fast Loans offers competitive interest rates and flexible repayment terms.

Final Thoughts

Self-employment has given many people the degree of freedom they have always dreamed about. But such a state of work comes with its own downsides. Self-employed individuals have to deal with many financial uncertainties, and, at times, covering all the associated expenses might be quite tough.

If you’re going through a challenging period, then you might want to consider opting for an installment loan. A loan from Simple Fast Loans can be used to cover your emergency expenses and overcome difficult times without changing the quality of life that you’re used to.

Note: The content provided in this article is for informational purposes only. Contact your financial advisor regarding your specific financial situation.