What Is a loans for gig workers?
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Applying For a Loans For Gig Workers Online
Are you an independent contractor who’s looking for an opportunity to grow your business?
You’re in the right place. We’re here to help you compare and understand the various loan options available to you.
Often, independent contractors struggle to find the right amount of funding to grow their businesses. After all, they’re often expected to cover all their own business expenses. This can make it more challenging to access capital when you need it. This is where loans for gig workers come in.
What Is a Loans For Gig Workers?
Simply put, a loan for gig workers is an independent contractor financial product designed to make it easier for you to access capital when you need it. The idea is to give you an alternative way to gain access to credit for your business without needing a traditional bank loan. That is extremely valuable when you’re operating on a tight budget.
Loans For Gig Workers are a great option for independent contractors who’s looking for a way to fund their business. Banks generally will not provide loans to contractors because they consider them to be too risky. However, specialized loan providers that work with contractors specifically have established a niche in the market and are able to provide loans to qualified applicants. That is where the value of the product comes from.
Why Are Loans For Gig Workers Being Promoted?
It’s always good to have an alternative financing option when you’re seeking capital. After all, banks can be extremely cumbersome when it comes to getting loans for your business. It usually takes a while and a lot of back and forth to get the terms right.
However, specialized loan providers that work with contractors have established a special credit line just for them. They understand how difficult it can be to get traditional bank loans and how valuable their services are. This is why they want to provide you with a special rate when you apply.
If you’re an independent contractor looking for a way to fund your business, consider applying for a loans for gig workers. This is an alternative to bank loans that can be easier to obtain and manage as you need it. Plus, you get a head start on your funding without having to wait for all the usual red tape.
There’s a common question that people ask when they find themselves in financial difficulty: Can I get a cash advance against my salary? The answer is usually no, but there are exceptions.
Many employers provide some form of payroll deduction for employees to pay for things like food, fuel and transport to work. That deduction is what allows you to get paid what you’re worth, even if you don’t have any debt or credit issues. But what happens if you do have some financial stress? Can you still rely on your salary for cash flow, or do you have to find other ways to fund your lifestyle?
Here’s a detailed look at the pros and cons of a cash advance for gig workers.
Getting a cash advance against your salary has some definite advantages. Perhaps the most significant advantage is the fact that you can’t be denied credit if you do have the money. Credit cards don’t scrutinize your spending habits as closely as a payday lender does; they want to give you cash and be done with it, so you can continue spending as you normally would. Additionally, the interest rates on a credit card are typically much lower than the fees that a payday lender would charge you.
Another advantage to having cash flow from a cash advance is that you don’t have to worry about your bills getting paid. If you’re having financial difficulties, you might be nervous about your usual paycheck not covering your costs. A cash advance gives you the peace of mind that your bills will be paid and you can concentrate on figuring out where the money comes from to pay off your debt.
Last but not least, having a steady source of income is beneficial, especially if you’re struggling with financial instability. It can be difficult to find a job that provides you with a steady flow of income, one that you can depend on to pay off your financial obligations and have enough left over to enjoy life. But if you’re looking for a way to fund your lifestyle, you might consider taking out a short-term cash advance against your paycheck. It’s not always the best solution, but it can be a quick, temporary measure that allows you to get back on your feet financially.
There are some significant disadvantages to getting a cash advance against your salary. The first is that you are usually tied to repaying the money with interest. The second is that short-term cash advances can be quite expensive. The third is that not all employers are willing to provide a cash advance against an employee’s paycheck. The last but not least is that the funds you receive are usually limited in how you can spend them. That is, you can’t spend just what the money is for. You must use some financial savvy to maximize the amount you get and use it effectively.
In summary, cash advances have their perks and their pitfalls. The advantages far outweigh the disadvantages whenever possible, but it’s not always an easy choice. You’ll have to weigh the pros and the cons in your mind and decide whether or not to take out a cash advance against your paycheck.
It’s now possible to apply for loans for gig workers online, which could make your life a little easier if you’re currently struggling to make ends meet as a self-employed artist, designer, or creative worker.
The online platform we recommend is called Canva. With Canva, creating a loan application is incredibly simple, and once you’ve done that, getting approved for your desired loan becomes a matter of minutes.
Canva is a free tool that can be accessed directly from your laptop, desktop, or mobile device. This means you can apply for a loan from the comfort of your couch. And speaking of comfort, Canva actually makes applying for a loan quite relaxing, as the application form takes into account your current physical location, whether or not you’re working, and more importantly, the temperature outside your home.
For example, if you live in the UK and it’s quite cold where you are, Canva will alert you that it’s best to add another layer to your clothing when filling out the application. Likewise, if you’re currently asleep, Canva will not wake you up to ask you a few personal questions. These small touches make a huge difference, and it’s something that competitors will never be able to match.
A Little About The Gig Economy
The gig economy has transformed the way we work and live. No longer do you need to be bound to one employer, or even one location. Thanks to gig work platforms like Uber, TaskRabbit, and Deliveroo — which provides on-demand courier services — you can now do a job, and then leave another, sometimes even the same one, a few hours or minutes later.
Many job-seeking gig workers prefer to operate on these platforms due to the flexibility they provide. Rather than being tied to one workplace location, you can take on as many jobs as you need, when you need them. Sometimes this can be more convenient than having a permanent job, and it can also help you to budget more easily, given that you’re not necessarily tied to one spending limit.
While this may be useful for some, it doesn’t suit everyone. For example, if you’re looking for the maximum tax credit – which is what you get when you apply for a loans for gig workers online through a reputable company – then you may want to consider how these platforms operate. For example, Uber and similar platforms are famously known for underpaying their drivers. This can lead to a real problem when it comes to your financial stability, as you still need to pay your Uber and TripAdvisor fees, even if you get zero earnings from your rides. The same goes for TaskRabbit and Deliveroo, where some of your earnings can go toward paying your bond. (This is the amount of money you need to pay each week, set by your bank or loan provider, to be able to continue your borrowing.)
Applying For A Loan
Once you have your Canva account, which you can set up in just a few minutes, you can begin filling out your loan application.
The first thing you’ll need to do is select the type of loan you want to apply for, and the amount you’re looking for. (We’ll come back to the interest rates and repayment options later, once you’ve made your selection.) Next, you’ll need to add information about yourself, including your residential address, phone number, and email address. You’ll also need to declare your personal assets, which we’ll come back to in a minute.
Now, let’s talk about what you’ll need to apply for a loans for gig workers online.
The Gig Work Platforms You’ll Need To Apply For A Loan
Before you begin applying for a loans for gig workers online, you’ll need to make sure you have the necessary hardware and software to do so. In most cases, this means you’ll need to have a smartphone with you, as well as a laptop or desktop computer. (If you have a Mac, you’ll also need to have the Apple Store app installed.)
If you have a Canva account, you can access the application form from any device, as we mentioned above. For those who don’t, you’ll need to have the form sent to you via email, which you can do by clicking the link in the email. Just remember, email access is case-sensitive, so make sure you’re typing these characters correctly: [email protected]>w>c
Now, let’s discuss the various platforms you’ll need to apply for a loans for gig workers online.
If you’ve ever taken an Uber ride, you’ll know it’s a popular gig work platform. It’s also one of the more well-known ones, which means you may already have some experience with it, even if you’re just an everyday user. (If you’re looking for a new platform to try out, Uber is consistently one of the top recommendations in our guides.)
Like many other gig work platforms, Uber drivers are independent contractors who are free to take on as many or as few jobs as they wish. This can make working for Uber quite flexible, as you may be able to choose your hours and set your own daily rates. (Some freelancing platforms, including Upwork, let you set your rate and choose when you work. While this may be appealing, it can also lead to an unstable income stream. For those looking for a more traditional job, Uber offers a viable alternative, as you’re not necessarily tied to a certain hourly rate or commission structure. (TikTok, a video-sharing platform similar to YouTube, also has an independent contractor platform, dubbed ICYMI that you may want to check out.)
TaskRabbit is one of the more established gig work platforms, having been around since the early aughts and having expanded to over 140 countries. (The company was founded in Sweden, but now has operations across the world.) You can use TaskRabbit to connect with manufacturers, suppliers, and contractors to carry out small jobs for individual customers. (Think of small jobs like delivering a sandwich, running an errand, or taking a photo for a customer.)
Like with Uber, you don’t necessarily need to have a TaskRabbit account to apply for a loans for gig workers online. While you can use the platform to connect with potential clients, you can also use regular email to apply for a loan, as the company maintains a standard applicant tracking system, which they call Astro.
Fiverr is one of the more traditional gig work platforms, connecting freelancers with businesses that need various services, ranging from copywriting and editing, to graphic design and web development. You can use Fiverr to take on small jobs for individual customers. (Like TaskRabbit, Fiverr was originally founded in Sweden, but now has offices worldwide.)
While Fiverr is probably the least technical of the four platforms discussed here, it is the most traditional. Since it was established in 2010, it has become a popular option for designers who want to make extra money online. And speaking of designers, if you’re a freelancer looking to land more work, you may want to consider applying for a loans for gig workers online through Fiverr, as it is generally accepted that you’ll find work through this route. (Just remember: Fiverr tends to favor applicants with previous client work. So if you’re looking for your first big break, this may not be the best option for you.)
Pixi is one of the newer gig work platforms, having launched in 2016 and having offices worldwide. The platform connects photographers with clients, who may require a specific skill-set or location for their project. For example, you may be required to travel to Paris for a week to take a look at the Eiffel Tower in the flesh. Since its establishment, Pixi has gained considerable traction within the gig work community, being named one of the top five photography-related gig work platforms by LinkedIn in 2018.
The biggest difference between Pixi and the other platforms discussed here is that while the other platforms are open to anyone, Pixi is specifically for those who have a business or commercial intent behind their photography. If you’re a photographer looking to make extra money online, then Pixi may be the right fit for you.