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Payday loans for self-employed people
Some payday loan lenders can accept self-employment income. Find out where you can apply.
Lenders typically want to see employment income when they’re approving an application, but there are some lenders, such as payday lenders, that are more lenient with their requirements as long as your income is stable.
⚠️ Warning: Be cautious with payday loansHigh-cost payday loans are unsustainable for borrowing over a continued period of time and are expensive as a means of longer-term borrowing. If you're experiencing financial hardship call Credit Counselling Canada for free financial counselling (Monday-Friday 8:00am-5:00pm at +1 866-398-5999). You may also want to consider payday loan alternatives.
Compare payday loans for the self-employed
Maximum borrowing costs of payday loans per provinceAlways refer to your contract for exact repayment amounts and costs as they may vary from our results.
|Province||Maximum allowable cost of borrowing|
|Alberta, British Columbia, New Brunswick, Ontario & Prince Edward Island||$15 per $100 borrowed|
|Manitoba, Saskatchewan & Nova Scotia||$17 per $100 borrowed|
|Newfoundland and Labrador||$14 per $100 borrowed|
|Quebec||Limit of 35% annual interest rate (AIR)|
How can I get a payday loan if I’m self-employed?
Lenders generally look at income to determine whether you can afford to repay a loan. Some payday lenders consider self-employment income as a valid source of income, while others do not. So if you want to take out a payday loan as a self-employed borrower, your first step is to find a lender that accepts this income.
Lenders look at stability. To increase your chances of approval, you’ll need to show evidence that your self-employment income is regular and steady enough, which you can often do by supplying 90 days’ worth of bank statements.
Eligibility criteria for self-employed payday loans
You will usually need to meet the following criteria in order to get a payday loan as a self-employed borrower.
- Be 18 years of age, or the age of majority in your province or territory.
- Be a Canadian citizen or permanent resident.
- Have proof of an income. For the self-employed, this could be 3 months of bank statements showing regular income.
- Have a valid bank account.
What is a payday loan?
Payday loans are loans between $100 and $1,500 that you must repay by your next payday (up to 62 days later). The borrowing fee is $14 to $17 for every $100 borrowed depending on your province, making it one of the most expensive types of loans. Only take out a payday loan as a last resort and only if you’re sure you can repay it in time. Because they’re so expensive, everything from payday loan amounts to loam terms are regulated at the provincial or federal level.
How to compare payday loans for the self-employed
When searching for a payday loan, consider the following factors.
- The fees you’ll be charged. Fees can include the borrowing fee and any other fees for late or missed payments. Be sure to read these details before signing a loan agreement.
- Turnaround times. If speed is important to you, search for a payday lender that can e-Transfer your funds within minutes after approval. Also, check operating hours because some payday lenders only operate during standard business hours, while others can approve applications 24/7.
- Reputation of the lender. The payday loan space is known to be predatory. Look for a legitimate payday lender that abides by provincial regulations and properly assesses your ability to repay the loan. To help you out, we’ve compiled a list of legitimate payday loan lenders above.
Benefits and drawbacks of payday loans for the self-employed
- Easy availability. Payday loans tend to have lenient requirements, and there are payday lenders that can accept self-employment income.
- Bad credit accepted. You generally don’t need a good credit score to get a payday loan. Lenders focus on your ability to repay the loan instead of your credit score or history.
- Quick access to funds. In many cases, funds can be transferred into your bank account within 24 hours.
- Fees and charges. Carefully go through all of the associated fees and charges before applying for a payday loan. If you think you might have trouble repaying the payday loan, do not take it out in the first place.
- Limited loan amounts. The maximum you can borrow with a payday loan is $1,500, so if you need larger loan amounts, this isn’t the right option for you.
Are there self-employed payday loans with no credit check?
Some payday lenders run credit checks, while others don’t. Those who do not run credit checks hone in on the stability of your self-employment income and your existing debts. They may need more time to give you approval as they assess your ability to repay the loan.
Even if a lender does run a credit check, it will consider much more than your credit when looking at your application. Just like lenders of no credit check payday loans, it will also look at your income and debts – a credit check is simply an extra step. So even if you have poor credit, it doesn’t necessarily mean you’ll be denied by a payday lender that runs credit checks.
Will self-employed payday loans with a credit check impact my credit?
It depends. For example, payday lender GoDay says a credit check will likely not impact your credit score, but it also depends on your credit history.
Alternative loans for the self-employed
Your options as a self-employed worker are not limited to only payday loans. Many other lenders offer loans to the self-employed, but often with stricter eligibility requirements. Depending on the lender, you may have to provide up to 2 years of tax returns showing consistent self-employed income. Besides payday loans, types of lending products you can get with self-employed income include credit cards, personal loans or even a mortgage.
Are payday loans legal in my province or territory?
Payday loans are available in all provinces and territories across Canada. You should be aware that payday loans are regulated by individual provinces, which means costs and fees can vary. Ensure that any lender you choose abides by the laws of the place you live.
The Yukon, Nunavut and the Northwest Territories do not have legislation regulating payday loans at the territorial level. Payday loans are regulated in these territories at the federal level only. Find out how much lenders can charge across Canada in our full guide here.
Compare payday loans for the self-employed
Common questions about self-employed payday loans
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