Freelancing is beginning to look a lot like a cult these days, as more and more nine-to-five workers are jumping on the ‘freelancewagon’. Well, none of us can blame when they only get to live up the benefits of working on flexible hours and doing their chosen responsibilities anytime, anywhere. We all want the kind of work setup, right? 

But! Let’s be honest, there is no such thing as a “perfect” job. While freelancing jobs and businesses can be fulfilling, they also have their share of bumps in the road. Some freelancers start facing many issues once they seek business growth and expansion — one of which is the challenge of securing a traditional bank loan.   

Sustaining the business is not easy, especially when financing options are limited. Most lenders consider freelancers a high risk when it comes to loan application approvals. Given the fact that freelancers are sole proprietors who are mainly responsible for the charges and losses of their business loans, banks doubt that they can’t be more than willing to enter a loan agreement. 

Good news, online lenders are now offering great alternatives to freelancers. Read on to find the simplified types of financing options available for freelancers like you.

Personal Loans

The first loan option is the easiest to approach. Personal loan providers are not after your reason for borrowing. Unlike traditional lenders, they are not interested to know either you use the money for personal or business purposes. They aren’t even worried if your freelance business is doing well or not, as long as you adhere to their repayment protocols, your credit score is okay, and you have income sources. However, the maximum loan they can provide may not exceed to $50,000. 


The main priority of microlenders is to serve the marginalized groups who experience a hard time qualifying for business loans.These includes debtors identified as veterans, housewives, students (minorities), or freelancers. The best thing about microloans is that they offer smaller interest rates compared to other available loan options. However, debtors are usually provided with loans between 5 to 35 dollars only. 


In crowdfunding, loans are clustered into two different types such as reward-based and equity-based. 

Let’s start with the concept of reward-based crowdfunding. Investors fund your business but you don’t repay them with cash so you give them a corresponding reward instead. For example, you’re about to produce your events management and the crowdfunding investors will be your support system. So, it’s like a form of sponsorship and the only way to pay your sponsors is when you offer them events services for free. 

Whereas equity-based is more similar to traditional investments in business shares where big companies share with your business in replacement of quick loans.  

Credit Lines 

Today, not only the banks can offer lines of credit since online lending firms can do the same. The concept of this platform works more like credit cards where debtors are provided with different amounts of funding options (up to the maximum limit) with the corresponding interest rates to pay for. The only thing that makes it more interesting than credit cards is its fair interest rates, charges, and payment options. 

Invoice Financing

This loan option involves borrowing of money against the amounts due that will be taken from the products or services provided to clients. This way helps small businesses to improve cash flow, pay employees and suppliers, and speed up business growth while waiting for the customers to pay their balance in full. The best thing about invoice financing is that freelance businesses don’t need to worry about unpaid invoices as they use them as a collateral for financing.