Short-Term Loan Option for the Self-Employed

Few things beat the freedom of being self-employed, but it does come at the price of a steady paycheck. Income often occurs in bursts, with times of high income followed by a few weeks with little to no cash coming in. If you need a bit of extra change in your pocket to get you through the lean times, these options may help.

Option #1: Pawn Something

Pawn shops work well if you only need a small amount of cash and you have something valuable you can live without for a couple of weeks. A few caveats, though. Don't pawn anything you need to earn money, like your computer or printer. Also, avoid pawning irreplaceable items when possible. You don't want to lose Grandma's wedding band because a client didn't pay you on time.

Option #2: Search and Sell

You may have time to stage a garage sale or to list some items for sale online if work is slow. This can bring in instant cash right when you need it most. Another option, if you're short on time, is to sell gold or another precious metal. Gather up those old broken necklaces or earrings that lost their mates and take them to a local gold buyer. You can even sell your gold online if you don't have time to travel to a buyer near you.

Option #3: Check Out a Payday Loan

Payday loans aren't just for those that get a regular paycheck. Many online payday loan companies also offer loans for the self-employed. The type of documentation they require depends on both the company and the method by which you are paid. If your business is primarily online and you are paid through an online service, such as Paypal, the loan company may verify your average income via the online service and take your payment from there. They may also just verify your income by looking at your bank deposits. Click this link for more information about payday loans.

Other companies may require further proof of income, such as payment contracts from clients, bank statements, or income tax forms. Generally, once your income is verified and your payment source is approved (generally direct payment from a bank account), you will receive your loan money. These are short-term loans, designed to be paid back within two to four weeks depending on the company.

These options aren't meant as permanent plans, but keep them in mind for when an emergency occurs. As you continue to grow your business, make sure you set aside some cash each week so you can easily get through the slow periods without going broke.