As a freelancer emergencies frequently occur, especially with an irregular income source. While you may have difficulties securing emergency loans from traditional lenders, there are other avenues to help.
Find Private Clients
It is customary for freelancers to ask for a portion of their payment upfront, which helps reduce incidences of clients getting their work without paying. If you are in an emergency, pick up a new client and ask for a portion of your payment upfront. You may even want to secure a new client for a rate lower than you would typically expect just to get over the hurdle you are facing. Find clients who are willing to pay upfront for tasks that are easy for you to complete within a reasonable time and that you do not feel overwhelmed by at a lower rate.
Use Quick-Paying Websites
No matter your niche in the freelance market, there are likely websites that will offer upfront payment within a timeframe that meets your needs. Even if you mostly work with private clients, seek out platforms that pay daily or weekly for work. In many cases, these websites may offer payments that are lower than your rate for private clients, but they still can be profitable in an emergency and in the future. Many freelancers find long-term, high paying clients via these platforms, which can turn your emergency into better income later.
Just as you can use other platforms to earn cash quickly, you should also branch out from your traditional skills. Many websites offer opportunities to do small tasks or be a virtual assistant for quick pay. Even if you are typically a freelance writer, graphic designer, or photographer, branching out and learning a new skill quickly can help get you out of a bind. You might even find something you enjoy doing and want to continue for an extra income.
Use Online Lenders
When you cannot find a quick resource to earn the money, finding an online lender is your next option. Unfortunately, many lenders only offer loans from brick-and-mortar locations, which can be more difficult when you have a self-employment income. If your state allows online lending, you stand a better chance at being approved for a payday loan or other types of lending opportunities.
Check Major Online Payment Methods
Some major online person-to-person payment methods offer lines of credit if your self-employment income reaches a specific threshold and you process enough payments through their platform. Check your payment processor to determine if your business qualifies and you can take out a small loan. Often times, the repayments are taking out as a portion of the payments you receive after you take out the loan.
When you experience a financial emergency and have an irregular freelancer income, you may believe you do not have any options. Although your options may not be as vast as someone who is paid on a regular schedule, there are options to help you through a difficult time.