Self-employed borrowers might be able to submit tax returns, bank statements, or other documentation as proof of income for a personal loan.
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A common requirement when applying for a personal loan is proof of income. This could be a challenge if you’re self-employed, especially if your income is irregular or difficult to prove.
However, there are several lenders willing to work with self-employed borrowers that offer other paths to approval besides a typical pay stub or W-2, such as tax returns and invoices, or that allow borrowers to attach a cosigner or collateral to the loan. Approval will be easiest if you have good to excellent credit. For example, the average APR for borrowers with a FICO score of 720 to 779 was 16.59% in November 2023, according to Credible data on three-year loans.
Being your own boss as a self-employed individual has many perks You get to set your own schedule, choose your clients, and take charge of your career path. However, one downside of working for yourself is that it can be harder to qualify for financing compared to traditional W-2 employees.
Lenders generally want to see a steady income stream to approve borrowers. For salaried workers, pay stubs make this easy to document. For the self-employed, it can take a bit more work to prove your income to lenders.
The good news is that with the right preparations, you can get approved for loans as a self-employed borrower. Let’s explore the financing options available and tips for qualifying when you work for yourself.
Types of Loans for the Self-Employed
Several loan products are available to finance your needs as a self-employed individual. Some of the most common include:
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Personal loans – Unsecured loans up to $100,000 from online lenders and banks. Can be used for any purpose.
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Business loans – Funding specifically for your company’s needs like equipment, inventory, and expansion
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Mortgages – Loans to purchase or refinance real estate that can be used as a personal residence or investment property.
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Auto loans – Financing from lenders and dealerships for purchasing new or used vehicles.
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Credit cards – Revolving credit lines that provide flexible financing for purchases and cash flow smoothing.
Personal and business loans tend to have the most flexible qualification requirements for self-employed borrowers. However, all of the above loans are attainable if you prepare properly.
Documentation Needed to Apply
Since you don’t get traditional pay stubs, self-employed applicants need to provide alternate income documentation. Common documents include:
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Several years of tax returns – Show your revenue, expenses, and net income.
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Bank statements – Deposits show cash flow.
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Profit and loss statement – Summarizes financial performance for current year.
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Business licenses and incorporations documents – Validate your business.
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Client invoices and contracts – Provide evidence of your clientele.
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Personal financial statement – Lists all your assets and liabilities.
Gathering these documents in advance will make the application process smoother. Be ready to explain any irregularities or fluctuations in your income.
Tips for Approval
Here are some best practices that can help your loan application get the green light:
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Maintain a high credit score – Aim for at least 660+ on your personal credit profile. This shows lenders you manage credit responsibly.
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Watch your debt-to-income ratio – Keep total monthly debt payments under 40% of your gross income.
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Have sufficient assets – Liquid assets like savings provide a buffer for potential income disruptions.
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Explain income fluctuations – Discuss any big spikes or dips in your income with the lender.
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Incorporate your business – Forming an LLC or corporation adds legitimacy in lenders’ eyes.
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Consider a cosigner – Adding a cosigner with good credit may help if your profile is limited.
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Apply with the right lender – Find those familiar with self-employed applicants’ unique needs.
With preparation and an understanding of lenders’ requirements, you can get approved for the financing you need.
Top Lenders for Self-Employed Borrowers
Many mainstream banks and credit unions can be reluctant to approve self-employed individuals. Online lenders and FinTech companies tend to take a more flexible approach.
Here are some top-rated lenders known for serving self-employed borrowers:
Lender|Loan Products|Loan Amounts|APR Range
How to get a personal loan when you’re self-employed
If you’re ready to take out a personal loan, follow these four steps:
- Shop around and compare lenders: Research and compare as many personal loan lenders as possible to find the right loan for you. Consider not only interest rates but also repayment terms, any fees charged by the lender, and requirements for self-employed borrowers. Also remember to check if the lender accepts cosigners, as having one might help you get approved if you’re having trouble proving your income.
- Choose your loan option: After comparing lenders, choose the loan option that best suits your needs.
- Complete the application: Once you’ve picked a lender, you’ll need to fill out a full application and submit any required documentation, such as tax returns or bank statements.
- Get your funds: If you’re approved, the lender will have you sign for the loan so your money can be sent to you. The time to fund for a personal loan is typically about one week — though some lenders offer fast personal loans that are funded as soon as the same or next business day after approval.
You typically need good to excellent credit to qualify for a personal loan. While some lenders offer personal loans for bad credit, these loans typically come with higher interest rates than good-credit loans.
If you’re struggling to get approved because of your credit, applying with a cosigner could improve your chances. Having a cosigner with a good score might also qualify you for a better interest rate than you’d get on your own.
Before you get a personal loan, it’s important to consider how much that loan will cost you over time. This way, you can be prepared for any added expenses. You can estimate how much you’ll pay for a loan using our personal loan calculator.
Learn More: How to Get a Personal Loan With a 600 Credit Score
9 lenders that work with self-employed borrowers
While some lenders don’t offer personal loans to self-employed borrowers, there are several that do. Here are several Credible partners that provide personal loans for the self-employed:
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, its also is one of few lenders that doesnt have a minimum credit score requirement (if you apply on the lenders website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Time to get funds
As soon as 1 to 3 business days
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Discover Personal Loans offers low APRs, repayment terms up to seven years, no origination fees, nationwide availability, and doesnt require your Social Security number to prequalify on its site. Youll need to have an annual income of at least $40,000, and a FICO score 660 or higher, to be eligible. If your credit score is fair or poor, youll need to go elsewhere, as Discover doesnt allow cosigners.
Funds are available as soon as the next business day after loan approval.
3 – 7 years
Available in all 50 states
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you dont need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
2 to 7 years
Autopay and direct pay
Available in all states
Time to get funds
Credit card refinancing, debt consolidation, home improvement, major purchase, other
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. Its easy to prequalify with LendingClub, especially if youre uncomfortable providing your Social Security number, as the company doesnt require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that youll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, youre less likely to have your application declined once you apply (if youve already prequalified). LendingClub may charge an origination fee between 3% and 8%.
Available in all 50 states
Time to get funds
Debt consolidation, paying off credit cards
SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesnt require your Social Security number.
The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you dont have good credit. You also wont be able to apply with a cosigner, since SoFi doesnt accept cosigners; nor does it offer secured personal loans.
2 – 7 years
Option to pay an origination fee (up to 6%) in exchange for a lower rate
Available in all states
Phone, email, live chat
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Solely for personal, family, or household uses
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Powers Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. Youll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Origination fee, late fee, unsuccessful payment fee, check processing fee
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Credit card refinancing, debt consolidation, home improvement, and other purposes
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers whove prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
Origination fee, late fee, dishonored payment fee
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Debt consolidation, emergency expense, life event, home improvement, and other purposes
1 to 5 years (2 to 5 years through Credible)
Happy Money has been in operation since 2009 (formerly known as Payoff). Its an option for fair-credit borrowers (plus those with better credit), and notably has a relatively low top-end APR. In other words, you could qualify for a lower rate with Happy Money with fair credit, relative to other lenders that offer fair-credit loans. The company does charge an origination fee on some loans, up to 5%, but thats not as high as some other lenders origination fees.
You should be prepared to wait a few days to get your money, as funding can take three to five days once approved. And loans arent available in Massachusetts or Nevada. Happy Money has an A+ rating with the BBB and is ideal for debt consolidation and credit card consolidation loans.
Available in all states except MA, MS, NV, and OH
Time to get funds
As soon as 2 – 5 business days after verification
Debt consolidation and credit card consolidation only
If youre self-employed, Avant requires that you submit your two most recent years’ complete, official tax documentation.
Best for all credit types
3.9
Borrowers with bad credit considered
Funds as soon as the next business day
1-year loan terms available on Avants website
Not available in HI, IA, MA, ME, NY, VT, or WV
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers whove prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
Origination fee, late fee, dishonored payment fee
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Debt consolidation, emergency expense, life event, home improvement, and other purposes
1 to 5 years (2 to 5 years through Credible)
Self-employed borrowers will need to provide their tax returns from the two most recent years to prove their income.
Best for low origination fees
3.9
Long loan terms available
May fund in 1 to 2 days
Low minimum income requirement
Available in all states
Trustpilot score of 4.9/5 stars
High minimum loan amount
Axos is one of few lenders that offers loans for business purposes. Plus, it has a low minimum income requirement, offers repayment terms up to 7 years, and is available in all states. But If you need a loan under $10,000, youll need to look elsewhere. While this lender may charge an origination fee, its fees are on the low side, topping out at 3%. Youll also want to have good credit to apply for a loan with Axos. You can expect to receive funds 1 to 2 business days after the loan is approved.
3, 4, 5, 6, 7 years
Available in all 50 states
Time to get funds
As soon as the next business day after successful verification
Debt consolidation, home improvement, self-employment, and other purposes
Best Egg works with borrowers who have a variety of employment statuses, such as salaried, self-employed, or retired.
Be sure to check with Best Egg to see what documentation you’ll need to provide.
Best for high close rates if pre-approved
4
Low minimum income requirement
Scored second in J.D. Powers Consumer Lending Satisfaction Study
Funds in 1-3 business days
High close rate on loans through Credible platform
Not available in DC, IA, VT, or WV
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Powers Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. Youll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Origination fee, late fee, unsuccessful payment fee, check processing fee
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Credit card refinancing, debt consolidation, home improvement, and other purposes
Self-employed borrowers will need to provide their two most recent years’ worth of tax returns to prove their income.
Best for no origination fees (and low rates)
4.4
May fund the next business day
Long loan terms available
Direct pay to creditors
Secured loans not available
Discover Personal Loans offers low APRs, repayment terms up to seven years, no origination fees, nationwide availability, and doesnt require your Social Security number to prequalify on its site. Youll need to have an annual income of at least $40,000, and a FICO score 660 or higher, to be eligible. If your credit score is fair or poor, youll need to go elsewhere, as Discover doesnt allow cosigners.
Funds are available as soon as the next business day after loan approval.
3 – 7 years
Available in all 50 states
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
Self-employed borrowers will need to submit the first two pages of IRS Form 1040 along with the first two pages of either the Schedule C or K1 form.
Best for consolidating credit card debt
3.9
Limited loan terms available
Not available in MA or NV
Happy Money has been in operation since 2009 (formerly known as Payoff). Its an option for fair-credit borrowers (plus those with better credit), and notably has a relatively low top-end APR. In other words, you could qualify for a lower rate with Happy Money with fair credit, relative to other lenders that offer fair-credit loans. The company does charge an origination fee on some loans, up to 5%, but thats not as high as some other lenders origination fees.
You should be prepared to wait a few days to get your money, as funding can take three to five days once approved. And loans arent available in Massachusetts or Nevada. Happy Money has an A+ rating with the BBB and is ideal for debt consolidation and credit card consolidation loans.
Available in all states except MA, MS, NV, and OH
Time to get funds
As soon as 2 – 5 business days after verification
Debt consolidation and credit card consolidation only
If you’re self-employed, you’ll need to submit a recent tax return or other forms like a 1099 as proof of income.
4
Low minimum income requirement
High close rate on loans made through Credible
Available in all states
Funding not as fast as some competitors
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. Its easy to prequalify with LendingClub, especially if youre uncomfortable providing your Social Security number, as the company doesnt require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that youll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, youre less likely to have your application declined once you apply (if youve already prequalified). LendingClub may charge an origination fee between 3% and 8%.
Available in all 50 states
Time to get funds
Debt consolidation, paying off credit cards
To potentially qualify for a loan, self-employed borrowers will generally need to show proof of consistent income through tax returns or bank statements.
In addition to income, SoFi will also consider your credit score, and education level.
4.9
Large loan amounts available
Autopay and direct pay discounts
Long loan terms available
5,000 minimum loan amount
SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesnt require your Social Security number.
The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you dont have good credit. You also wont be able to apply with a cosigner, since SoFi doesnt accept cosigners; nor does it offer secured personal loans.
2 – 7 years
Option to pay an origination fee (up to 6%) in exchange for a lower rate
Available in all states
Phone, email, live chat
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Solely for personal, family, or household uses
To apply, self-employed borrowers must provide their two most recent tax returns.
Best for fair credit
4.5
Fair credit borrowers eligible
Autopay and direct pay discounts
Can fund in as little as 1 business day
High maximum origination fee
Cosigners not accepted on home improvement loans
Low J.D. Power ranking
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you dont need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
2 to 7 years
Autopay and direct pay
Available in all states
Time to get funds
Credit card refinancing, debt consolidation, home improvement, major purchase, other
If you’re self-employed, you’ll need to submit the previous year’s full tax return plus proof of recent income in the form of a digitally deposited check or a business invoice.
Best fast personal loans for all credit types
3.9
May fund in 1 business day
No minimum credit score requirement on lender site
Trustpilot score of 4.9/5 stars
May charge a high origination fee
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, its also is one of few lenders that doesnt have a minimum credit score requirement (if you apply on the lenders website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Time to get funds
As soon as 1 to 3 business days
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Learn More: Where to Get a Personal Loan
If you’re just starting out as being self-employed, then providing the commonly required two years’ worth of tax returns might be difficult.
In this case, applying for a personal loan with a cosigner could be a good option. Not all lenders allow you to apply with a cosigner, but some do.
Even if you don’t need a cosigner to qualify for a personal loan, having one could get you a lower interest rate than you’d get on your own.
Before you borrow, be sure to consider multiple lenders. This way, you can more easily find a loan with a good rate as well as favorable terms.
Self Employed Mortgage: How To Get Approved in 2022 if Self-Employed or Entrepreneur
FAQ
Can you get a loan if you are self-employed?
Why is it so hard to get a loan when self-employed?
How much can I borrow self-employed?
Does being self-employed affect a personal loan application?
Being self-employed doesn’t have much impact on the process of applying for a personal loan. What’s different is the documents you’ll submit to prove you earn enough income to repay the loan. A personal loan application typically requires:
Can a self-employed person get a loan?
Getting any kind of loan usually requires showing proof of income so lenders feel assured a borrower has a steady salary that can keep them making their monthly payments on time. If a borrower is self-employed and has an irregular income or cash flow, it can be hard for them to prove they’re ready to take on a loan.
Are express loans a good choice for self-employed applicants?
Express loans are a great choice for self-employed applicants who need to access cash quickly, as the SBA responds to Express loan applications within 36 hours of receipt. This is substantially faster than the five to 10 business days it takes for 7 (a) small loans.
What are personal loans for self-employed borrowers?
Personal loans for self-employed borrowers are installment loans that you pay off on a monthly basis or a certain period of time, often one to seven years. Lenders offer various loan amounts, often ranging from $1,000 to $50,000, though some lenders offer up to $100,000 or even $200,000. APRs often range from around 4% to 36%.