January 31, 2023

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Business is my step

How to Get Approved for a Personal Loan When Unemployed

2 min read
How to Get Approved for a Personal Loan When Unemployed

Do you find starting a small business while unemployed intimidating? Is launching a business more expensive than you thought? Is it more challenging now, when the world is faced with COVID-19? No worries. Business funding, such as a personal loan, can be the helping hand you need for getting the money you need for expenses.

How to Get Approved for a Personal Loan When Unemployed

Business Funding for the Unemployed

Before applying for a personal loan, you should decide on the amount you need for, e.g., starting a business. In addition, you should go through your credit report to see whether there are any issues or inaccuracies there so to resolve them. Only then, you should do your research and find the right provider for your financial needs to turn to.

Of course, you can find lenders that don’t require borrowers to have a stellar credit score. And this is great especially for those who have poor credit or no credit at all. Thanks to such lenders, you can get more easily approved for business funding and be able to move forward successfully. So, look for a business financing provider that pays more attention to your cash flow than to your credit score.

How to Get a Personal Loan While Unemployed

What lenders focus on is lending funds to those who’re able to pay them back. What about those who have inconsistent income? The good news is that even if you don’t have consistent income, you can still get approved for a personal loan.

In this case, the lender will look at the time you’ve been in business. If you can show you’ve been doing business for at least 2 years, you can be eligible. If not, the lender will ask you to provide collateral or you’ll need to find a co-signer.

Be aware that there are personal loans that don’t require collateral, and these are called unsecured loans. In this case, you won’t be obliged to lose your house, car, or another possession when being unable to make a payment. Here’s what the lender can consider as income:

  • Unemployment benefits
  • Child support
  • Disability payments
  • Investments like annuities
  • Pension
  • Social security
  • Rental income
  • Inheritance
  • Alimony
  • Regular payments from a settlement

Getting a Personal Loan While Unemployed

Unemployment can drastically harm your finances. If you’re unemployed and need access to capital, you can apply for business financing such as a personal loan. Thankfully, there are providers that don’t consider your credit the most crucial factor when determining your eligibility.

Author Bio: Michael Hollis is a Detroit native who has helped hundreds of business owners with their (business funding) solutions. He’s experimented with various occupations: computer programming, dog-training, accounting… But his favorite is the one he’s now doing — providing business funding for hard-working business owners across the country.

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