In today's gig economy, freelancing has become a fact of life for many American workers. With one in three working adults choosing a non 9-to-5 type of job, there over 53 million freelancers in the United States, according to the Bureau of Labor Statistics (BLS). If you're one of the millions, you know that a steady paycheck is never guaranteed. Take a look at how a car title loan can keep you in business.
1. Provides an Alternative Loan Option
Loans aren't always easy to secure. You need a decent credit score and verifiable income for a bank to consider you a viable candidate. If you're a freelancer, chances are you only have one of these two requirements.
While traditional workers can turn in paystubs and years' worth of similarly sized tax returns, you may have very little paperwork to show - especially if you work for multiple companies or don't receive 1099 forms.
Even though you can submit your year-end tax documents, these typically come with the caveat that you may make significantly more or less next year (depending on whether you've had a particularly good or bad work year).
The paystub/proof of income issue can also interfere with some alternative lending options, such as payday loans. Without a regular paycheck, these lenders aren't likely to give you the quick cash that you need now. Title loans only require one thing - a free and clear car title. The title loan company won't run a credit check and they don't need to see paystubs.
2. Pays for Immediate Expenses
As a freelancer, you're the boss of your own business. While this comes with perks (such as a flexible schedule and the ability to work anywhere), it also means that the expenses all fall into your lap.
If your computer breaks, you suddenly need a software upgrade. If you have another immediate business-related expense, you have no one to go to for money. There's no tech department to fix your laptop for free, and you can't simply expense new equipment.
A title loan is a short-term option that gives you money right now. Instead of having to miss deadlines, disappoint clients, or lose out on potentially valuable business, you can buy a new laptop, pay for repairs, or purchase whatever equipment you need to get back to work today.
3. Covers Health-Related Costs
Insurance isn't cheap. Even though freelancing provides you (as the name says) freedom, it can come with some drawbacks. One of the primary downsides to working for yourself is the lack of employer-paid health insurance. Without an employer at least partially paying for a policy, you may need to purchase pricey coverage that comes with high co-pays and a high deductible.
Even though your insurance comes at a cost, getting sick or injured may mean that you can't work for days, weeks, or even months. Unlike traditional 9-to-5 workers, freelancers don't have sick benefits or paid time off. Getting back to work as soon as possible is critical for any freelancer. If you're sick or injured, you require prompt medical care.
Combine the need for almost immediate recovery with a sub-par insurance policy and you have a recipe for high medical bills. A title loan gives you money to pay those costs right now, making it possible to concentrate on work and not on the debt you'd otherwise start building.
4. Supplements Inconsistent Income
One month your income surpasses your wildest dreams. But by the next month you've lost a client and you're scrounging for quarters in the sofa. A freelancer's financial life is unpredictable at best. This can leave you unable to pay bills one month, and then suddenly able to pay off all your debts the next. A title loan is a way to keep your debt manageable and pay your bills until your income picks up again.
Do you need extra cash right now? Contact Title Exchange for more information.