How self-employed borrowers can still receive a payday loan

There is a method that could help you get money quickly, even if you're self-employed.

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Owning your own business, no matter what size, can mean cash flow is difficult and put a strain on your finances. Individuals who aren’t eligible for conventional forms of credit, such as personal loans or credit cards, or who need money more quickly, can consider payday loans as an alternative. If you’re in this position, find out what your options are in the guide below.

⚠️ Warning: be cautious with short-term loans

If you're experiencing financial hardship and would like to speak to someone for free financial counselling, you can call the MoneyTalks helpline operated by FinCap on 0800 345 123. It is open from 8:00am to 5pm, Monday to Friday and 10am to 2pm Saturday. When comparing short term loans, ensure you take into consideration any fees, charges and rates you may be charged.

Alternatives to short-term loans

Consider these alternatives before applying for a payday loan:

  • Use online Government resources. The Commerce Commission New Zealand website explains how loans works and what to be aware of when borrowing from a lender.
  • Payment plans. Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan or receive an extension on your due date if you’re behind on payments.
  • Contact your creditors. Speak with creditors about extending the due date of your payment, or working out a new payment plan that works for both of you. Seek personal loans elsewhere. Consider a small personal loan from a bank or a credit union. You may qualify for a loan with much lower interest rates than those offered by payday loan companies.
  • Pay with credit card. Consider paying with your credit card to cover your emergency bills or payments. This is not a long term solution, as you’ll need to pay off the balance as soon as possible, but it’s an alternative to a short term loan with high – and immediate – interest rates.

Compare loan options for self-employed and apply securely

Be sure to select ‘Compare’ in the table below per lender to see if you meet the minimum requirements for application.

Name Product Max Loan Amount Loan Term Turnaround Time Loan Interest Establishment Fee Account Administration Fee
Save My Bacon Mini Loan
$750
1-8 weeks
Same day
49.95% p.a
$95
$10
Short term loans up to $750 with no hidden fees. Eligibility: Be 18 or over, have an income of at least $400 per week and be a NZ citizen, permanent resident or have a valid work visa.
Teensy Cash Loan
$1,400
6-12 months
Same day
39.95% p.a.
$95
$15
Eligibility: Must be at least 22; in full time employment or receive a full-time benefit; have a minimum income of $500 per week after tax; be a New Zealand citizen or permanent resident.
Moola Payday Loan
$2,000
Up to 184 days
Same day
292% p.a.
$0
N/A
Borrow up to $2,000 and enjoy a flexible repayment plan. Eligibility: Be 18 or over, have an ongoing source of income, working visa applicants accepted (conditions apply).
Teensy Payday Loan
$900
6-16 weeks
Same day
292% p.a.
$0
N/A
Eligibility: Must be at least 22; in full time employment or receive a full-time benefit; have a minimum income of $500 per week after tax; be a New Zealand citizen or permanent resident.
Save My Bacon Flex Loan
$5,000
8-52 weeks
Same day
49.95% p.a
$95
$10
Medium term loans from $1,000 to $5,000 with no hidden fees. Eligibility: Be 18 or over, have an income of at least $400 per week and be a NZ citizen, permanent resident or have a valid work visa.
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Compare up to 4 providers

Am I eligible for a short-term loan if I’m self-employed?

Short-term lenders have more flexible lending criteria than banks or credit unions. For a lender to approve you for a loan, you need to show evidence of a regular income, which you can do by supplying 90 days worth of bank statements. Some lenders will not consider self-employed applicants, but others do, so check the eligibility criteria before you apply.

How does a payday loan for self-employed people work?

These loans are usually available for between $100 and $2,000, but you can get short-term loans of up to $10,000. They are called “payday” loans because lenders structure your repayments around when you receive your pay, which is usually a regular date for “pay as you go” (PAYG) borrowers.

If you’re self-employed, lenders look at your banking history to work out a repayment plan or let you select repayment terms to work with your budget. Regarding eligibility, the lender may ask for additional documents to verify your income as you cannot provide payslips.

How to compare your short-term loan options

  • How much you can borrow. When applying for a payday loan, you can expect to receive an amount between $100 and $2,000, although this is subject to the lender looking at your financial situation.
  • The fees you are charged. Fees vary according to the loan provider, so make sure you check this out thoroughly before you sign up for a loan.
  • How long you will have to repay the loan. In some cases, you can repay the borrowed money in as little as two days or two weeks. If you fail to repay the loan, you will have to pay additional penalties.
  • What fees apply for late repayments. Payday loan providers often charge a fee if you don’t make your repayments on time. It might be a good idea to compare these fees if you think you might be late with payments.

What are the benefits and drawbacks of these loans?

  • Easy availability. Even though some lenders don’t offer payday loans to self-employed individuals, they are still relatively easy to find.
  • Bad credit accepted. To be eligible for a payday loan, you generally don’t need a good credit history.
  • Quick access to funds. In most cases, providers can transfer the funds into your nominated account within 24 hours.
  • Fees and charges. Carefully go through all the associated cost before applying for a payday loan, which may include application fees; account-keeping fees; settlement fees; early repayment fees and late charges.

Is there anything I should avoid?

  • Applying for too many loans. Remember, loan providers list all applications on your credit file. Avoid asking for too many loans in succession, if a lender does not approve you immediately.
  • Accumulating debt. Having a payday loan requires you to repay it on time, and if you don’t, you will end up accruing debt. Remember to budget for your loan repayments before you sign on the dotted line.

Have more questions?

Will my credit history be checked?

Usually, a payday loan provider will check your credit history, regardless of whether you’re self-employed. Some lenders won’t but remember to consider this before applying.

How do I apply?

Choose a lender from the options above and click “Go to Site” to start your application. Fill out the necessary details and wait to hear whether the provider approves you for the loan, which usually only takes a few minutes. You typically receive your money on the same day, depending on when the provider accepts your application.

What is the eligibility criteria?

This differs between lenders and is something you need to check before you apply. Most lenders require you to be a New Zealand citizen or permanent resident, who is at least 18 years of age and with a regular income.

Generally a payday loan provider will check your credit history, regardless of whether you’re self employed. There are some lenders who want. Remember to compare before applying.

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