Here is a method that could help you get money quickly, even if you're self-employed.
If you own your own business, no matter what size, cash flow can be difficult. Individuals who aren't eligible for conventional forms of credit such as personal loans or credit cards, or who need the money more quickly, can consider payday loans as an alternatuve. If you're in this position, find out what your options are in the guide below.
Ferratum offer a fast and easy online application. You can apply today to get approved for up to $1,000.
- Loan Amount: $1,000
- Loan Term: 16-32 Days
- Turnaround Time: 1 hour - conditions apply
- Total Cost of Borrowing $100: 20% of principal amount (establishment fee) + 4% of principal amount per month.
- Bad credit borrowers OK
- Quick and easy Approval
Comparison of bad credit personal loans
Warning about Borrowing
It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.
Check your options before you borrow:
- For information about other options for managing bills and debts, ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor
- Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan
- If you are on government benefits, ask if you can receive an advance from Centrelink: Phone: 13 17 94
The Government's MoneySmart website shows you how small amount loans work and suggests other options that may help you.
* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.
How does a payday loan for self employed people work?
Payday loans are small, short term loans up to about $2,000 that are designed to be repaid within 16 days to one year. They are called "payday" loans because the repayments are structured around when you receive your pay, which is usually regular dates for PAYG borrowers, but they will not be regular for self-employed borrowers.
Lenders will look at your banking history to work out a repayment plan for you or let you select repayment terms to work with your budget. In terms of eligibility, you may be asked for additional documents to verify your income as you cannot provide payslips.
How you can compare your short term loan options
- How much you can borrow. When applying for a payday loan you can expect to receive any amount in between $100 to $2,000, although this is subject to the lender looking through your financial situation.
- The fees you will be charged. Lenders are restricted as to how much they can charge you as fees – they can only charge 20% as an estalishment fee and 4% as a monthly fee.
- How long you will have to repay the loan. In some cases, you have to repay the borrowed money in as little as 16 days or a month, failing which you have to pay additional penalties.
- What fees apply for late repayments. Payday loan providers often charge a fee is you don’t make your repayments on time. It might be a good idea to compare these too, if you think you’re going to be late with your payments.
What are the benefits and drawbacks of these loans?
- Easy availability. Even though some lenders don't offer payday loans to self employed individuals, they are still relatively easy to find.
- Bad credit accepted. To be eligible for a payday loan you generally don’t need a good credit history.
- Quick access to funds. In most cases, funds can be transferred into your nominated account within 24 hours.
- Fees and charges. Carefully go through all the associated fees and charges before applying for a payday loan. Fees and charges you might have to pay include application fees, account-keeping fees, settlement fees, early repayment fees, and late charges.
Things to avoid
- Applying for too many loans. Remember that all loan applications are listed on your credit file. Avoid applying for too many loans in a row if you are not approved straight away.
- Accumulating debt. Getting a payday loan requires that you repay it on time, and if you don't, you'll only end up accumulating debt. Remeber to budget for your loan repayments before you sign on the dotted line.
Frequently asked questions
How do I qualify?
You might have to provide copies of your bank statements for the last 90 days or more as this helps the lender establish your earnings. In addition, most lenders require that you are an Australian resident who is at least 18 years of age.
Will the lender go through my credit history?
Generally a payday loan provider will check your credit history, regardless of whether you’re self employed. There are some lenders who want. Remember to compare before applying.