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Join For FreeBest Loans For Freelancers & The Self-Employed
Alternative lenders make it easier than traditional lenders for the self-employed to get the capital they need. Find out if any of these freelance loans will work for you.
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WRITTEN & RESEARCHED BY
Lead Staff Writer
Last updated onUpdated
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REVIEWED BY
Editor & Senior Staff Writer
Our content reflects the editorial opinions of our experts. While our site makes money through referral partnerships, we only partner with companies that meet our standards for quality, as outlined in our independent rating and scoring system.
Loans for freelancers exist, but that doesn’t mean they’re easy to find. Traditional lenders tend to view freelancers, gig workers, and the self-employed as risky borrowers. That means you can’t just walk into your local bank branch and apply for a small business loan. You can, however, explore alternative loans.
Online alternative lenders are more relaxed in their borrower requirements, making it easier for the self-employed to get small business loans. This article will explore the best small business loans for freelancers. Whether you need an SBA loan to cover a major expense or a flexible funding option such as a cash advance, we’ll cover it all.
Learn More About Our Top Picks
| Company | Best For | Next StepsBest For |
|---|---|---|
BusinessLoans.com
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Credibly
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Upstart
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Prosper
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Fundbox
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| Show More Options | ||
Bluevine
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| Show Fewer Options |
Read more below to learn why we chose these options.
Table of Contents [hide][show]
- 6 Best Loans For Freelancers & The Self-Employed
- BusinessLoans.com: Best Cash Advance For Independent Contractors
- Credibly: Best SBA Loan For The Self-Employed
- Upstart: Best Personal Loan For Freelancers With Limited Credit
- Prosper: Best Personal Loan For Freelancers With Good Credit
- Fundbox: Best Line Of Credit For Freelancers Making $100K
- Bluevine: Best Line Of Credit For Freelancers Making $500K
- Best Types Of Loans For Freelancers
- How To Get A Freelancer Business Loan
- Which Loan For Freelancers Is Right For Your Business?
Table of Contents
- 6 Best Loans For Freelancers & The Self-Employed
- How The Best Loans For Freelancers Compare
- BusinessLoans.com: Best Cash Advance For Independent Contractors
- BusinessLoans.com
- BusinessLoans.com Rates & Fees
- BusinessLoans.com Features For Freelancers
- BusinessLoans.com Eligibility Requirements
- Credibly: Best SBA Loan For The Self-Employed
- Credibly
- Credibly Rates & Fees
- Credibly Features For Freelancers
- Credibly Eligibility Requirements
- Upstart: Best Personal Loan For Freelancers With Limited Credit
- Upstart
- Upstart Rates & Fees
- Upstart Features For Freelancers
- Upstart Eligibility Requirements
- Prosper: Best Personal Loan For Freelancers With Good Credit
- Prosper
- Prosper Rates & Fees
- Prosper Features For Freelancers
- Prosper Eligibility Requirements
- Fundbox: Best Line Of Credit For Freelancers Making $100K
- Fundbox
- Fundbox Rates & Fees
- Fundbox Features
- Fundbox Eligibility Requirements
- Bluevine: Best Line Of Credit For Freelancers Making $500K
- Bluevine
- Bluevine Rates & Fees
- Bluevine Features
- Bluevine Eligibility Requirements
- Business Loan & Funding Products Review Methodology
- Best Types Of Loans For Freelancers
- How To Get A Freelancer Business Loan
- Which Loan For Freelancers Is Right For Your Business?
6 Best Loans For Freelancers & The Self-Employed
Freelance businesses — aka sole proprietorships — may need loans to invest in growth, cover bills, or buy equipment. Someone that is self-employed may also need a loan if their income is irregular or clients don’t pay on time. Some examples of loans for freelancers are short-term loans, personal loans, and cash advances.
- BusinessLoans.com: Best Cash Advance For Independent Contractors
- Credibly: Best SBA Loan For The Self-Employed
- Upstart: Best Personal Loan For Freelancers With Limited Credit
- Prosper: Best Personal Loan For Freelancers With Good Credit
- Fundbox: Best Line Of Credit For Freelancers Making $100K
- Bluevine: Best Line Of Credit For Freelancers Making $500K
How The Best Loans For Freelancers Compare
| Type(s) Of Financing Offered | Revenue Requirement | Maximum Loan Amount | Bad Credit Options? | |
|---|---|---|---|---|
| BusinessLoans.com | Invoice financing, term loan, merchant cash advance, line of credit | $100,000/year | $3 million | |
| Credibly | Short-term loan, term loan, line of credit, SBA loan, equipment financing, merchant cash advance, invoice factoring | $15,000/month | $600,000 | |
| Upstart | Personal loan | $12,000/year | $50,000 | |
| Prosper | Personal loan | N/A | $50,000 | |
| Fundbox | Line of credit | $30,000/year | $150,000 | |
| Bluevine | Line of credit, short-term loan | $10,000/month | $250,000 |
BusinessLoans.com: Best Cash Advance For Independent Contractors
Pros
- Convenient, time-saving service
- Suitable for startups and bad credit
- Funding up to $3 million is available
Cons
- Little rate/fee information is disclosed on the website
- Funding can take a while
Why We Chose BusinessLoans.com For Best Cash Advance For Independent Contractors
BusinessLoans.com is a business financing marketplace that connects applicants to business loans and other financial products from lending institutions in its network. This free service can help freelancers obtain various types of business financing, including merchant cash advances, invoice factoring, short-term loans, and lines of credit.
In particular, merchant cash advances have a low barrier to entry for self-employed 1099 contractors, as they typically have easy-to-meet borrower requirements and lower fees than predatory payday loans.
When To Use BusinessLoans.com
- You have bad credit and want to explore what types of funding you qualify for
- You have regular daily credit card sales and want a cash advance
- You make at least $100,000/year from your freelance business
Get Started With BusinessLoans.com
Credibly: Best SBA Loan For The Self-Employed
Pros
- Variety of lending products offered
- High borrowing amounts
- Relaxed borrower requirements on some lending products
- Easy online application
Cons
- SBA loan applications take longer than other online loan types
- Some additional fees are added
- Repayments require a regular and reliable freelance income
Why We Chose Credibly For Best SBA Loan For The Self-Employed
Credibly is an alternative business lender that makes SBA loans easy to apply for online. For example, freelancers with an established business and decent credit may qualify for an SBA working capital loan -- a sub-type of SBA 7(a) loan for borrowers seeking less than $150,000 -- which you can apply for online using Credibly (or another of our best SBA lenders that we recommend).
Additionally, Credibly offers traditional working capital (term) loans, lines of credit, invoice factoring, equipment financing, merchant cash advances, and other business lending services you might be able to benefit from if you don't meet the qualifications for an SBA loan. Invoice factoring especially can be useful if you are a freelancer with slow-paying clients.
When To Use Credibly
- You want an easy way to apply for an SBA loan online
- You want to explore different types of business financing and compare offers
- You make at least $15,000/month from your freelance business
Upstart: Best Personal Loan For Freelancers With Limited Credit
Pros
- No income or time-in-business requirements
- Accepts applicants with minimal credit history
- Repayment terms are as long as 5 years
Cons
- Usually requires an origination fee
- The maximum loan amount is only $50,000
Why We Chose Upstart Best Personal Loan For Freelancers With Limited Credit
The best personal loans for businesses are a great source of financing for freelancers because they do not have any time-in-business or business revenue requirements.
Upstart, in particular, offers a couple of big advantages with its personal loans. First, this online lending platform lets you borrow up to $50,000 -- a limit that exceeds many of its competitors. Second, these loans are available to borrowers with a limited credit history.
When To Use Upstart
- You need a small loan <$50,000
- Your freelance income isn’t high enough to qualify you for a business loan
- You have bad credit or no credit
Prosper: Best Personal Loan For Freelancers With Good Credit
Pros
- No time-in-business or revenue requirements
- You can add a co-signer if your credit score is too low
- Can repay over 2 – 5 years
- Next-day funding
Cons
- Origination fees taken off the top of the loan
- Not for individuals with bad credit (except with a co-signer)
- The most you can borrow is $50,000
Why We Chose Prosper For Best Personal Loan For Freelancers With Good Credit
Prosper is another online personal lender with a great reputation among its customers. Because these are personal loans, freelancers with no official business credentials can borrow up to $50,000 through Prosper.
Prosper prefers applicants with good credit, but will accept fair-credit applicants. You also have the option to add a co-signer to your loan if your score is too low.
When To Use Prosper
- Your freelance income isn’t high enough to qualify you for a business loan
- You need a small loan <$50,000
- You have at least fair credit, or a cosigner with fair credit
Fundbox: Best Line Of Credit For Freelancers Making $100K
Pros
- No draw fees
- Funds are available as soon as the next business day
- Relaxed credit score and time-in-business requirements
Cons
- Short repayment terms
- Fees can be high
Why We Chose Fundbox Best Line Of Credit For Freelancers Making $100K
If you're a freelancer looking for the best business line of credit, you’ll find that Fundbox is one of the easiest online lenders to work with. Fundbox offers revolving lines of credit up to $150,000.
A Fundbox LOC is suitable for freelancers who are bringing in a steady stream of income but need more time or deeper pockets to pay ongoing business expenses or vendors.
When To Use Fundbox
- You want a line of credit you can draw from as needed
- You have fair or good credit
- Your annual income from freelancing is at least $30,000/year
Bluevine: Best Line Of Credit For Freelancers Making $500K
Pros
- High borrowing amounts
- 24-hour funding
- No monthly fee
Cons
- Charges draw fees
- Financing isn’t available in some states
- Requires reliable freelance income totaling at least $10,000/month
Why We Chose Bluevine For Best Line Of Credit For Freelancers Making $500K
Bluevine is another easy-to-use line of credit that may be suitable for some self-employed individuals. Though only established businesses with strong revenues are eligible for a Bluevine LOC, you can borrow more than with Fundbox -- up to $250,000.
Bluevine also offers short-term loans up to $250,000 and business checking accounts. (We have a resource on the best business bank accounts for freelancers if you want other bank options.)
When To Use Bluevine
- You are a successful and established independent contractor, earning at least $10,000/month
- You want a short-term loan or a line of credit you can draw from as needed
- You have fair or good credit
Business Loan & Funding Products Review Methodology
We spend hours researching and evaluating each business loan and funding product that we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.
When rating lenders and funding providers, we use a 31-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating. This rubric is applied to traditional term loans, as well as short-term loans, start-up loans, lines of credit, online lending products, merchant cash advances, and equipment financing products.
- Rates & Fees: 20% of the total star rating
- Services: 20% of the total star rating
- Eligibility Requirements: 20% of the total star rating
- Application: 15% of the total star rating
- Sales & Advertising Transparency: 10% of the total star rating
- Customer Support: 5% of the total star rating
- User Reviews: 5% of the total star rating
Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the lending product, customer support, and the overall reputation of the lender or funding provider.
Read more about how we rate small business lenders.
Best Types Of Loans For Freelancers
Most of the above loans for freelancers fall into the categories of personal loans, lines of credit, and invoice factoring. A couple of options also offer some business term loans that may be suitable for freelancers.
| Type Of Financing | Best For… | Recommended Options |
|---|---|---|
| Personal Loan | Business growth or other one-time funding needs | Upstart, Prosper |
| Line Of Credit | Quick access to cash for emergencies or other funding reasons | BusinessLoans.com, Fundbox, Bluevine, Credibly |
| Invoice Financing/Factoring |
Freelancers with slow-paying customers | BusinessLoans.com, Credibly |
| SBA Loan | Freelancers with established businesses | Credibly |
| Merchant Cash Advance | Gig workers, freelancers that take credit card payments | BusinessLoans.com, Credibly |
Freelancers who don’t qualify for any of these loan options might consider looking at the best business credit cards for startups or business crowdfunding.
How To Get A Freelancer Business Loan
Once you decide to pursue a freelancer loan, there are a few steps you need to take to make sure you’re successful in your pursuit.
Although it’s very easy to start applying for loans as soon as you find the link, you are not likely to secure a high-quality loan if you just start blindly applying without putting any thought or research into it.
To help ensure that you get funded and to make sure you get a good deal on your freelancer loan, read our step-by-step guide to getting a small business loan.
Which Loan For Freelancers Is Right For Your Business?
Online loans for freelancers are fast and easy, giving you access to funds in as little as 24 hours in some cases.
However, in exchange for less stringent requirements and fast funding, many online lenders have higher interest rates, additional fees, and less favorable terms than traditional lenders.
So before signing on the dotted line, make sure that you explore your options, compare loan offers, and choose the loan that will best benefit your freelance business.
If your revenue or credit score doesn’t qualify you for funding just yet, you can at least start saving money in credit card fees by using one of these freelancer payment methods.
Shannon Vissers
Lead Staff Writer at Merchant Maverick
Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
View Shannon Vissers's professional experience on LinkedIn.
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