Choose a country
United States
Select a city
Select a city
Select language
Select country
Choose a country
United States
United States
Việt nam

Explore Loan Options for Independent Contractors

Navigating the financial landscape as an independent contractor can be challenging, but with the right guidance, securing a loan doesn't have to be a hassle. Our comprehensive guide explores various loan types and lenders willing to work with independent contractors. Uncover the benefits, eligibility criteria, and application processes for each loan option to make an informed decision that propels you or your business towards financial stability.
Offers: 2
Best Quick Loan Today 27.02.2024*
Need a Quick Loan Now?
Rating by Finanso®

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
100.00 – 2000.00 $

Effective interest rate on the product

0.05 – 2.50 %

Loan term for the financial product

5 days – 3 months
Submit One Loan Application Online!
Submit One Loan Application Online!

Use our quick loan matching system with a free credit check!

Rocket Loans
Personal Loan
Rating by Finanso®

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

(20 Ratings)
Recommended FinScore™
2000.00 – 45000.00 $

Effective interest rate on the product

to 9.12 %

Loan term for the financial product

30 months – 60 months
Loans Calculator of February 2024 

Calculate your best loan with a free credit check in the US, just a few clicks away.

The best personal loan calculator
Personal loan amount

Specify tt=he amount you want to receive

1000 $
100000 $
Personal loan term

Specify the desired length of the personal loan

Interest rate

Choose the interest rate on the loan

2 %
40 %
Type of payments

Specify the type of payment for calculating

The Legal Status of Personal Loans in the USA 

In the USA, personal loans are legal and typically used for non-business needs. They must be repaid according to the loan agreement, which includes interest and a repayment timeline. Various laws regulate these loans, including the Equal Credit Opportunity Act, the Fair Debt Collection Practices Act, and the Truth in Lending. These laws protect both the lender's interests and the borrower's rights, ensuring fairness and transparency in the lending process.

The application process was a breeze, and I received a response within minutes. This straightforward and prompt procedure proved to be a great help to me during a crucial time of need.
JG Wentworth
The assistance I received was exceptional. My representative handled my case with care and provided all the necessary information...
OneMain Financial
The loan application process was straightforward, and the representative I interacted with displayed patience, provided informative answers, and was quite pleasant throughout...
My Funding Choices
The process was swift and straightforward, which was particularly helpful during a time when, despite my reluctance to seek assistance, I genuinely needed help.
Plain Green Loans
The interest rate is shockingly high, and it feels like taking advantage of individuals facing financial challenges when unexpected expenses arise...
Advance America
I have never encountered any issues with this company. They consistently deliver funds on time, and the repayment process is straightforward...
Explore Loan Options for Independent Contractors

What are Loans for Independent Contractors?

Loans for independent contractors are financial products designed specifically for individuals who work on a self-employed basis or as freelancers. Unlike traditional employees who receive a regular salary, independent contractors typically have a variable income and may face unique challenges when it comes to obtaining financing. These loans can help independent contractors cover various expenses such as equipment purchases, business expansion, working capital, or personal needs. Independent contractor loans can typically be obtained from traditional banks, credit unions, online lenders, or specialized lending institutions.


  1. Flexibility in Use. Personal loans for independent contractors can be used for both personal and business purposes. This flexibility allows contractors to utilize the funds for various needs, such as consolidating debt, covering personal expenses, or investing in their business.

  2. Income Verification. Independent contractors may need to provide additional documentation to verify their income since they may not have traditional pay stubs. Lenders often require copies of tax returns, bank statements, or contracts to evaluate the applicant's income stability and repayment capacity.

  3. Credit Evaluation. Lenders assess the creditworthiness of independent contractors to determine their eligibility and interest rates. This evaluation considers factors such as credit score, credit history, and any existing debt obligations.

  4. Loan Amounts and Terms. The loan amounts for personal loans can vary based on the individual's income, creditworthiness, and the lender's policies. Similarly, the repayment terms can range from a few months to several years, allowing contractors to choose a suitable repayment schedule.

  5. No Business Plan Required. Unlike business loans, personal loans for independent contractors typically do not require a detailed business plan or financial projections. This simplifies the application process and makes it more accessible for contractors who may not have a formal business structure.

  6. Collateral. Personal loans for independent contractors can be either secured or unsecured. Secured loans require collateral, such as property or equipment, to secure the loan. On the other hand, unsecured loans do not require collateral but may have higher interest rates.

Pros and cons


Flexibility. Personal loans offer flexibility in terms of usage, allowing independent contractors to utilize the funds for both personal and business purposes, such as debt consolidation, equipment purchases, or covering personal expenses.

Access to Funds. Personal loans can provide quick access to funds, allowing contractors to address immediate financial needs or take advantage of business opportunities without lengthy approval processes.

Credit Building Opportunity. Timely repayment of personal loans can help independent contractors build a positive credit history, improving their creditworthiness and potentially leading to better loan terms and opportunities in the future.


Higher Interest Rates. Personal loans, especially unsecured ones, may have higher interest rates than loans secured with collateral. This can increase overall borrowing costs, especially for contractors with less-than-perfect credit scores.

Limited Loan Amounts. Personal loans may have lower maximum loan amounts than business loans, limiting the funds available for large-scale business investments or expansion.

Impact on Personal Credit. Personal loans are typically tied to the contractor's personal credit, and any late or missed payments can negatively impact their credit score and financial standing.

Repayment Obligations. Contractors must repay the loan according to the agreed-upon terms, including interest and fees. Meeting these repayment obligations may become challenging if the contractor's business experiences a downturn or irregular income.

Potential Debt Accumulation. Taking on personal loans adds to the contractor's overall debt burden, which may increase financial stress and affect future financial planning.

How can independent contractors apply for a loan?

Apply for a loan

  1. Gather Documentation. As an independent contractor, you'll typically need to provide additional documentation to verify your income and financial stability. This may include tax returns, bank statements, profit and loss statements, or client contracts. Prepare these documents in advance to streamline the application process.

  2. Provide Business Financials. If you operate your business, provide detailed financial statements, such as profit and loss, balance sheets, or cash flow statements. These documents can give lenders a better understanding of your business's financial health and your ability to repay the loan.

  3. Seek Recommendations and Referrals. Ask fellow independent contractors or business contacts for recommendations or referrals to lenders they have successfully worked with in the past. Personal referrals can help you find lenders experienced in working with independent contractors and understand your unique financial circumstances.

  4. Research Lenders. Research different lenders, including traditional banks, financial institutions, credit unions, online lenders, or specialized lending institutions that offer personal loans. Compare their interest rates, fees, loan terms, and eligibility requirements to find the lender that best suits your needs.

  5. Pre-Qualification or Pre-Approval. Some lenders may offer pre-qualification or pre-approval processes that estimate the loan amount and interest rate you may qualify for. This step can help you assess your loan options and narrow down your choices.

  6. Consider Alternative Lenders. Explore alternative lending options, such as online lending platforms or peer-to-peer lending networks. These platforms may have different eligibility criteria and loan terms than traditional lenders, providing additional options for independent contractors.

  7. Submit Loan Application. Complete the loan application form provided by the lender. Provide accurate and detailed information about your personal and financial background, including your income, employment history, and any existing debt obligations. Double-check the application for any errors before submitting it.

  8. Provide Supporting Documentation. Along with the loan application, submit the required supporting documentation to verify your income, such as tax returns, bank statements, or client contracts. Ensure that all documents are organized and up-to-date.

  9. Await Approval and Review Offer. Once you've submitted your application, the lender will review your information and decide. If approved, carefully review the loan offer, including the interest rate, loan amount, repayment term, and any associated fees. Consider the terms and evaluate if they align with your financial goals and repayment capabilities.

  10. Accept the Loan Offer. Accept it if you are satisfied with it by following the lender's instructions. This may involve signing a loan agreement or electronically accepting the terms.

Requirements and conditions

  1. Proof of Income. Independent contractors must typically provide documentation to verify their income. This may include tax returns, bank statements, invoices, or client contracts. Lenders use this information to assess the contractor's income stability and repayment capacity.

  2. Minimum Income Threshold. Lenders may have a minimum income threshold that independent contractors must meet to qualify for a personal loan. This threshold ensures that the contractor has sufficient income to repay the loan.

  3. Creditworthiness. Lenders evaluate the creditworthiness of independent contractors by considering factors such as credit score, credit history, and any existing debt obligations. A good credit score improves the chances of loan approval and may result in more favorable loan terms.

  4. Business History. Some lenders may require independent contractors to have a minimum duration of business operation, such as one or two years, to demonstrate stability and financial sustainability.

  5. Financial Stability. Lenders may assess the overall financial stability of independent contractors. This includes factors such as the contractor's savings, investments, and other assets.

  6. No Recent Bankruptcies or Foreclosures. Lenders may have restrictions on providing loans to individuals who have recently filed for bankruptcy or experienced foreclosure.

  7. Personal Identification. To verify their identity, Independent contractors must provide personal identification documents, such as a valid government-issued ID (e.g., passport or driver's license).

  8. Age Requirement. Contractors typically must be at least 18 years old to apply for a personal loan.

  9. Residency or Citizenship. Lenders may require independent contractors to be permanent residents or citizens of the country where they are applying for the loan.

  10. Debt-to-Income Ratio. Lenders consider the contractor's debt-to-income ratio, which is the percentage of their monthly income that goes toward debt payments. A lower debt-to-income ratio demonstrates better financial health and repayment capacity.

  11. Employment and Tax Compliance. Independent contractors must ensure they comply with employment and tax regulations in their jurisdiction. Lenders may request proof of tax filings and compliance with relevant employment laws.

Best places to get a personal loans for independent contractors today 27.02.2024


Apply for a loan

Upstart uses artificial intelligence and alternative data to evaluate loan applications. They consider factors beyond credit scores, making them an attractive option for independent contractors with limited credit history.Upstart


Apply for a loan

OnDeck specializes in small business loans and lines of credit. They offer funding options tailored to the needs of independent contractors, including fast approval processes and flexible repayment terms.OnDeck

Funding Circle

Apply for a loan

Online peer-to-peer lending platform Funding Circle connects borrowers, including independent contractors, with investors. They offer small business loans with competitive rates and transparent terms.Funding Circle


Apply for a loan

Kabbage provides small business loans to independent contractors and self-employed individuals. They offer lines of credit with quick approval processes and flexible repayment options.Kabbage

Ways to get the money

  1. Direct Deposit. Many lenders offer direct deposit as a funding option. Once your loan is approved and the loan agreement is signed, the lender transfers the loan amount directly into your designated bank account. This method provides quick access to funds and allows you to use the funds as needed.

  2. ACH Transfer. Some lenders use Automated Clearing House (ACH) transfers to fund personal loans. Once the loan is approved, the lender initiates an electronic transfer to deposit the loan amount into your bank account. ACH transfers are a secure and convenient way to receive funds.

  3. Check Issuance. Sometimes, lenders may issue a physical check for the loan amount. The check can be mailed to your address or made available for pickup at a designated location. You can then deposit or cash the check to access the loan funds.

  4. Wire Transfer. For larger loan amounts or urgent funding needs, lenders may offer wire transfers as a funding option. Once the loan is approved, the lender initiates a wire transfer to send the funds directly to your bank account. Wire transfers are generally faster than other methods but may involve additional fees.

  5. Prepaid Debit Card. Some lenders provide loan funds on a prepaid debit card. The loan amount is loaded onto the card, which can be used like a regular debit card for purchases or cash withdrawals. This option can be convenient if you don't have a bank account or prefer to separate the funds from your primary account.

  6. Virtual Wallet or Digital Account. Certain lenders may offer a virtual wallet or digital account to hold and manage your loan funds. This is typically an online platform or app where you can access and manage your funds. You can make transfers, payments, and track your loan balance through the digital account.

Things to pay attention to

  1. Eligibility Criteria. Understand the lender's eligibility requirements. Ensure you meet financial obligations and minimum criteria, such as income thresholds, credit score, and business history, to increase your chances of approval.

  2. Interest Rates and Fees. Compare interest rates and fees offered by different lenders. Higher interest rates can significantly impact the cost of borrowing, so aim for the most competitive rates. Also, be aware of any origination fees, prepayment penalties, or other charges associated with the loan.

  3. Loan Terms and Repayment Options. Carefully review the loan terms, including the repayment period and frequency. Ensure that the repayment schedule aligns with your financial situation and cash flow as an independent contractor. Evaluate if the loan term allows you to comfortably repay the loan without straining your finances.

  4. Documentation Requirements. Understand the documentation the lender requires to verify your income, such as tax returns, bank statements, or client contracts. Ensure you have all the documents prepared and organized to expedite the application process.

  5. Loan Approval Time. Evaluate the lender's turnaround time for loan approval and disbursal. Depending on your urgency, you may prefer a lender that can provide quick approval and funding.

  6. Credit Reporting. Understand how the lender reports loan information to credit bureaus. Timely repayment of the loan can help build your credit history and improve your credit score. Ensure that the lender reports positive payment information to the credit agencies.

  7. Prequalification or Rate Checking. Some lenders offer prequalification or rate-checking processes that allow you to estimate loan terms and rates without a hard credit inquiry. This can help you assess your options without affecting your credit score.


Apply for a loan

  1. Business Line of Credit. Instead of a personal loan, an independent contractor can explore obtaining a business line of credit. This provides access to a revolving credit line that can be drawn upon as needed. It offers flexibility and allows contractors to borrow funds for business-related expenses, such as equipment purchases, marketing campaigns, or covering cash flow gaps.

  2. Business Credit Cards. An independent contractor can apply for business credit cards, which offer a revolving line of credit for business expenses. Business credit cards often have perks such as rewards programs, cashback, and travel benefits. Careful management of credit card spending and timely payments can help build credit and provide financing flexibility.

  3. Invoice Financing. Independent contractors who invoice clients for their services can consider invoice financing or factoring. With invoice financing, you sell your outstanding invoices at a discounted rate to a lender and receive immediate cash. This can help improve cash flow and bridge payment gaps while waiting for clients to settle their invoices.

  4. Peer-to-Peer Lending. Peer-to-peer lending platforms connect borrowers with individual investors who provide loans. Independent contractors can create loan listings detailing their borrowing needs, and individual lenders fund all or a portion of the loan. Peer-to-peer lending can offer more flexible terms and potentially lower interest rates than traditional lenders.

  5. Equipment Financing. If the independent contractor requires specific equipment or machinery for their work, they can explore equipment financing options. Equipment financing allows contractors to obtain the necessary equipment by spreading the cost over a period of time. The equipment itself serves as collateral for the loan.

  6. Supplier or Vendor Financing. Some suppliers or vendors offer financing options to their customers. Independent contractors who regularly purchase goods or services from specific suppliers can inquire about financing programs or payment plans. This can help manage cash flow and obtain necessary supplies without immediate upfront payment.

  7. Grants and Contests. Independent contractors can explore grants, scholarships, or business contests specific to their field or industry. These opportunities provide non-repayable funds that can be used to support projects, research, or business growth.

Editorial opinion

Personal loans can be a valuable financial tool for independent contractors, providing them with the necessary funds for personal and business needs. These loans offer flexibility and convenience, allowing contractors to address various expenses or invest in their business growth. However, caution should be exercised when considering personal loans. Independent contractors should thoroughly research and compare different lenders to find the most favorable terms. Paying attention to interest rates, fees, and repayment terms is crucial to avoid unnecessary financial strain. It's important for contractors to assess their financial situation and borrowing capacity to ensure they can comfortably meet their loan obligations. While personal loans can provide quick access to funds, contractors should consider the potential risks associated with borrowing. Taking on excessive debt without a well-defined plan for repayment can lead to financial difficulties. Contractors should carefully evaluate their cash flow and projected income to determine the feasibility of borrowing and create a realistic repayment plan. Additionally, contractors should maintain a good credit score and financial discipline. A strong credit profile increases the likelihood of securing favorable loan terms and future financing options. Responsible borrowing, transparent communication with lenders, and prompt repayment are essential to maintaining a healthy financial position.


Keeping your Debt-to-Income (DTI) ratio below 30-40% of your monthly income is crucial. This will help you avoid potential financial problems in the future. Additionally, always assess the necessity and feasibility of taking a loan, ensuring you can comfortably manage its repayment.

How to choose a lender

  1. Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.
  2. Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.
  3. Carefully review all the terms and conditions of your loan contract.
  4. Thoroughly examine the interest rates and ensure that your contract includes a detailed breakdown of the total cost of the loan.
  5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.
  6. Choosing a lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.


At Finanso, we've carried out a comprehensive analysis of over 100 lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.

Additional resources

To learn more about independent contractor loans and best practices, check out some of the following resources:



Is it hard to get a loan as an independent contractor?

Obtaining a loan as an independent contractor can be more challenging than traditional employees due to the nature of self-employment and the variability of income. Lenders may have different criteria and requirements for assessing the creditworthiness of independent contractors. Factors such as income stability, credit history, and income documentation may play a significant role in the independent contractor loan approval process. However, with careful preparation, documentation, and research, independent contractors can still qualify for loans tailored to their needs.

Can you get a loan as a 1099 employee?

Yes, 1099 employees or self-employed people who are independent contractors can potentially qualify for loans. However, the eligibility criteria and requirements may differ from those for traditional employees with W-2 income. Lenders will typically evaluate factors such as income stability, credit history, and income documentation when considering loan applications from 1099 employees. It's important to provide accurate and comprehensive income documentation and assess your borrowing capacity to increase your chances of getting approved for a loan.

Can I get an SBA loan if I am an independent contractor?

Yes, independent contractors can potentially qualify for Small Business Administration (SBA) loans. The SBA offers loan programs, such as the SBA 7(a) loan program, designed to support small businesses, including independent contractors. Eligibility requirements and loan terms may vary depending on the specific SBA loan program, but independent contractors can explore these options to obtain financing for their business needs.

Can I get a cash advance with a 1099?

Yes, getting a cash advance as a 1099 employee or independent contractor is possible. Cash advances are typically based on your future income or receivables, and some lenders may consider your 1099 income as a basis for providing a cash advance. However, lenders may vary eligibility and terms, so it's important to research and compare different options to find a suitable cash advance provider that caters to 1099 employees.

Can I get a personal loan as an independent contractor if I have a bad credit score?

Obtaining a personal loan as an independent contractor with bad credit can be challenging, but it is possible. Lenders specializing in working with borrowers with less-than-perfect credit or alternative financing options may be more willing to consider your application. However, remember that loans for individuals with bad credit may come with higher interest rates or stricter terms. Exploring secured loans, having a co-signer or joint applicant, or working on improving your credit can increase your chances of getting approved for a personal loan.