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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.

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 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.

1 - 1 of 1
Name Product Max Loan Amount Loan Term Turnaround Time Loan Interest Establishment Fee Account Administration Fee
Save My Bacon Flex Loan
$5,000
12 - 36 months
Same day
49.95% p.a
$125
$4 per month
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.
Medium term loans from $2,000 to $5,000 with no hidden fees.
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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 short term loan, you need to show evidence of a regular income, which you can do by supplying 90 days worth of bank statements.

If an applicant is self-employed, they may also need to provide their accountant’s contact information during the application process. While some lenders won’t consider self-employed applicants, others do. Before applying, check the lender’s specific eligibility criteria to see if they consider self-employed applicants.

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.
  • 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?

More guides on Finder

  • Payday loans in Auckland

    We look at payday loans available in Auckland, including which lenders are based here and how to compare loan providers.

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  • $1,000 cash loans

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  • Urgent cash loans

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  • Low-income loans

    Need to borrow money but you’re on a low income? There are lenders that will consider you. Find out what your options are and how much you need to earn to be eligible for a low-income loan.

  • Personal loans vs payday loans

    Find out the difference between personal loans and short term payday loans to see which will be best for you.

  • Can you repay your payday loan early?

    Why not repay your payday loan early if you can? Find out which lenders let you close your loan early without charging you a penalty or fee.

  • Loans for bankrupts

    If you have declared bankruptcy and need a loan, there are options available.

  • $1,500 loans you can apply for

    Find out which lenders will approve you for a loan up to $1,500 and what you need to apply.

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