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How Do I Get A Loan If I’m Self-employed?


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How do I get a loan if you’re self-employed? Self-employment can be a great way to make your own income and be in control of your career, but getting a loan can be challenging. You don’t get pay stubs or W-2s from your employers showing that you earn enough to cover your monthly payments.

The good news is that you can apply for a personal loan even if you are self-employed. Here’s what you need to know about self-employment loans.

Can I get a Personal Loan being self-employed?

It’s important that you can show sufficient, stable income from self-employment. Some slight fluctuations in your income are acceptable occasionally, but lenders ultimately want to see an ongoing upward trend.

Additionally, lenders look for applicants with good credit scores and a history of repaying debts. They’ll also examine the type, age, limits, usage, and status of existing debts. The lender may also examine how often an applicant applied for new credit in the past year. 

There are some ways to prove your loan eligibility if you don’t have W-2s to rely on.

Showing Proof Of Income When Self Employed

Obtaining proof of income is an essential part of loan approval. Here are some ways to prove your income if you are self-employed:

Tax Returns and Transcripts

Some lenders may request tax returns or transcripts of tax returns in place of W-2s or pay stubs as proof of income. Tax transcripts are documents from the IRS that include financial information from your tax return, such as your adjusted gross income.

Bank Statements

It is typical for a lender to ask for several weeks’ worth of bank statements to see whether you’re depositing enough into your bank account to keep up with the monthly payment.


If you have bad credit or you’re unable to meet minimum loan requirements on your own, a co-signer may be a good option as they are equally responsible for repayment. 

This adds a layer of security for the lender if you’re unable to make payments. If a co-signer doesn’t seem like a good option for you, rebuilding your credit may be a good place to start.


A secured loan is a type of loan that is backed by personal property such as a car. Putting up collateral reduces your lender’s financial risk which can get you easier approval. In the case that you default on the loan, the lender can take possession of the property.

Personal Loan Alternatives When Self-Employed

Personal loans aren’t the only way to borrow money if you are self-employed. Here are a few other options to consider:

Business Loans

small business loan may be a good option to fund your business, term loans and equipment loans are included in a small business loan.

Credit Cards With 0% APR

A credit card with 0% APR is great for someone considering a personal loan for debt consolidation. These types of promotions generally charge no interest on balances for between 12 to 18 months. Existing balances can be transferred to the card but be sure to pay off your debt before the introductory period ends.

Home Equity Loans

If you own a home and have equity, you may be able to borrow from equity in your home through a home equity loan or a home equity line of credit.

Cash Advance

Cash advances are short-term loans that you can get from your credit card. This can provide quick access to cash when you need it and is a good alternative to using your credit card. Keep in mind that the APR for cash advances tends to be higher than the APR for purchases.

Equity Financing

Equity financing is selling part of the ownership of your company, this would be a viable option if you are starting a company that won’t have cash flow for years or potentially at all.

Bottom Line

 The good news is that, even if you are self-employed, there are lenders who will be interested in working with you. The key is to show them that your income stream is steady each year. This will give lenders confidence that you’ll be able to make your payments on time each month. 

Are you ready to take the next step towards achieving your financial goals? See your options online today and start applying for the loan that’s right for you with My USA Finance.

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