Best Personal Loans For Self Employed – Why Online Loan Alternatives Are The Best Choice?
Over the past several years, the alternative loan industry has proven itself as a dominant force in the finance industry. We wanted to further explore the best personal loans for self employed individuals. We know being self employed ourselves that it can be difficult to get Bank loans or Credit Union financing when you own your own business. Here we explain why online personal loan alternatives are the best choice.
Alternative lenders offering personal loans for self-employed borrowers are now viable competitors to traditional banks. Most conventional lenders tightened their borrowing guidelines after the financial meltdown of 2008. Self-employed borrowers were hit hard by the strict lending requirements and began seeking alternative financing options to raise capital.
Alternative lenders stepped in to fill the void, and many self-employed borrowers now recognize the flexibility and access to credit offered by these nonbank companies.
Who are the Best Alternative Lenders for Self-Employed Borrowers?
The alternative lending marketplace or peer-to-peer lenders, continues to grow as more companies start to enter the industry. Some companies focus exclusively on personal loans for self employed borrowers while others offer a wide range of loan products. Here are some of the best alternative lenders.
To review and compare personal loan options visit our Top 10 Personal Loans 2017 comparison chart.
Lending Club is the largest peer-to-peer lending platform. It has streamlined the entire personal loan process to 100% online. Personal loans can be approved in minutes and completed online. You can fill out an easy online personal loan application and get funded by individual investors on the Lending Club platform. These are unsecured personal loans with fixed payments.
Founded in 2012, Upstart considers more than just credit scores when self-employed borrowers apply for loans. The company also considers factors such as education, work experience and credit histories. Loans are available for self-employed borrowers who need capital to help support their businesses, and the loan amounts range from $3,000 to $35,000 with APRs starting as low as 4.7 percent.
SoFi or Social Finance as it is called has low rate personal loans as well as no loan origination fees. They also offer unemployment insurance on the loan which many do not. They also offer Student Loan refinancing just in case you are self employed and have a large amount of student loan debt.
This U.K. based business focuses all of its attention on small business owners from the United States and the U.K. The company’s founders built the lending platform based on their experience with traditional banks. Their inability to find financing for their startups using the traditional route lead them to create their own practical solution for small business funding. Since Funding Circle’s inception, the company has lent over $1 billion to more than 8,000 small businesses worldwide. Personal loans range from $25,000 to $500,000 for businesses that need new equipment or need to expand.
As one of the first companies to enter the alternative lending marketplace, Prosper has awarded over $4 billion in loans since its inception. The company offers personal loans for self employed borrowers, debt consolidation loans, bridge loans for small businesses and vehicle loans. The loan amounts range from a minimum of $2,000 to a maximum of $35,000 with APRs starting as low as 5.99 percent. First-time borrowers can qualify for loans through Prosper, but the APRs can go as high as 36 percent.
Are There Other Alternative Lenders I Should Consider?
The companies listed above are only a snapshot of the lenders available in the alternative market. PeerForm and Earnest are some other popular choices among younger self-employed borrowers. To really understand what the best personal loans for self employed people are you should compare all your options.
Lending Club is one of the principal players in the alternative lending industry. The company caters to borrowers who need personal finance loans and business loans. The company’s personal loans start at a minimum of $1,000 with a maximum of $35,000. Established business owners can qualify for loans as high as $300,000. Definitely check them out as a great option if you have good credit.
Are you a self-employed borrower having trouble finding a bank that will give you a personal loan? Well check out our options for the best personal loans for self employed individuals. Explore your options today and get started.
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