How self-employed borrowers can apply for a payday loan
Discover the eligibility requirements that you'll need to meet if you're applying for a short term loan if you're self-employed.
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You may still be eligible to apply for a short-term loan even if you're self-employed. Like other applicants, you'll be required to meet the eligibility criteria and income requirements to receive approval. As payday loans can be an expensive form of credit, it's important to consider the fees, repayments and compare your options before applying.
To learn more about applying for a short term loan if you're self-employed, read this guide to compare your options and the eligibility requirements that you'll need to meet.
Are you struggling financially?
If you're struggling financially and would like to speak to someone for free financial advice, information and assistance you can call the Financial Counsellors hotline on 1800 007 007 (open from 9:30am to 4pm, Monday to Friday). If you are suffering financial problems related to the coronavirus pandemic you may be eligible for additional support. Find out more here: https://www.finder.com.au/coronavirus-financial-help
⚠️ Warning about Borrowing
Do you really need a loan today?*
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.
Sunshine Short Term Loans
- Loan Amount: $2,000
- Loan Term: 9-14 weeks
- Turnaround Time: 30 minutes - conditions apply
- Fees: 20% of loan amount + 4% of loan amount each month
- Bad credit borrowers OK
- Quick & easy Approval
Comparison of bad credit personal loans
Am I eligible for a short term loan if I'm self-employed?
Applicants must provide evidence of a regular income, which they need to do by supplying 90 days worth of bank statements. Some lenders include specific annual income requirements in the eligibility criteria, so check this before applying.
If an applicant is self-employed, they may also need to provide their accountant's contact information during the application process. While some lenders won't consider self-employed applicants, others do. Before applying, check the lender's specific eligibility criteria to see if they consider self-employed applicants.
How does a payday loan work?
These loans are usually available for between $100 and $2,000, but some payday loans can be as high as $5,000 or up to $10,000. These loans are called "payday" loans because the repayments are structured around when you receive your pay.
Lenders will look at your banking history if you're self-employed 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 if you're not providing payslips.
How to compare your short term loan options
- How much you can borrow. When applying for a payday loan you can usually request loan amounts ranging between $100 to $2,000, although this is subject to the lender and your financial situation.
- The fees you will be charged. If you're borrowing a loan up to $2,000, you may be charged up to 20% as an establishment fee and 4% as a monthly fee.
- How long you will have to repay the loan. Short term loan repayments can vary from 16 days to 12 months. During this time, you'll be required to make regular repayments. Some lenders allow you to repay the amount before the end of the loan term without being charged any penalty fees.
- What fees apply for late repayments. Payday loan providers often charge a fee if you don’t make your repayments on time. So, before signing any contracts, make sure to confirm what late fees apply. If you don't think you can pay off the loan (plus the additional fees) on time, don't apply for the loan.
Mistakes to avoid with a short term loan
- 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. Remember to budget for your loan repayments before you sign on the dotted line.
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