How do you apply for personal loans for freelancers?
- Register your TIN and file for taxes
- Get a business permit
- Look for other financial documents
- Opt for secured loans from private lenders
- Pay on time so that you can develop a good credit history
If you’re a freelancer looking for financial assistance, you might find it difficult to secure it from banks. With multiple requirements and slow-moving applications, this is not the most recommended solution for the self-employed. That’s why if you need a loan, an online financing company in the Philippines is the better choice. To know how you can apply for personal loans for freelancers, keep on reading!
Register Your TIN And File For Taxes
Legitimate lending institutions in the Philippines—both banks and private financing companies—require proof of income before you can apply for a personal loan. One of these is a photocopy of your latest Income Tax Return (ITR). This shows the amount of money you earn yearly, which is the basis of how much you can loan.
Now if you’re a salaried employee, you won’t have a problem submitting this form. But most freelancers, especially beginners, skip over this process altogether. That’s why if you want to secure financing assistance in the future, you might find it easier to do so if you’re a taxpayer. This way, you can enjoy low-interest rates and fast approval from online financing institutions.
The first thing you should do is secure a Tax Identification Number (TIN) from the Bureau of Internal Revenue (BIR). If you already have one, you can start filing your ITR. Aside from freelancers, entrepreneurs also need to submit this document.
Get A Business Permit
Speaking of being an entrepreneur, if you run a small business you can also use this as an opportunity to secure even faster approval rates from a financing institution. The first thing you need to do is to register your company with the Department Of Trade And Industry.
This way, you can use a business name legally in the Philippines. After that, you can get a business permit from your local government units. You can submit the requirements to your city or municipal hall.
With a business permit, you have an additional document to provide as proof of income. After all, the more documents you have as evidence of your paying capability, the easier it is to secure financing assistance.
Look For Other Financial Documents
That’s why if you can, you should submit all the documents you have that show proof of your source of income. For example, if you keep your savings at a bank, you can include your bank statement in your application.
But if you’re not confident in your savings, you can always use other assets that you own. Do you have a car, truck, motorcycle, or real-estate property? Other vehicles such as a multi-cab and motorcycle can also help you secure a personal loan.
All you need is proof of ownership of these assets. For example, an Original Receipt and Certificate Of Registration (OR/CR) is accepted as an official document for collateral loans from private financing institutions.
Opt For Secured Loans From Private Lenders
Now that you have everything you need, all to have to do now is to submit your documents to a financing institution—whether it’s a bank or a private company. You have a high chance of getting approved now that you have proof of income to show. But if you’re after low-interest rates and fast approval time, the latter is the way to go.
For example, if you have completed the documents and the application process, you can get approval as fast as one day from Asialink! If you needed the cash to renovate your home, expand your business, or fund an emergency, you don’t have to waste time waiting.
Asialink also offers interest rates as low as 1.25% for new accounts. For renewals, they provide even lower rates! That’s why having a good credit history can help you secure more affordable loans.
Pay On Time So You Can Develop A Good Credit History
After you have secured a personal loan as a freelancer, all you need to do is pay on time. This way, you can build a good relationship with your financier. If you need additional loans in the future, you can secure even bigger deals at more affordable rates!
For example, if you need additional supplies as a freelance writer or artist, you can rely on your financing institution to help you divide big purchases into monthly payments. This way, even if you have the cash for one-time payments, it wouldn’t hurt your savings.
Aside from freelancers, self-employed entrepreneurs will also benefit greatly from a good relationship with their financing institution. If you ever needed a loan to afford more inventory, buy new office equipment, or expand to a new location, you can rely on loans with higher amount limits.
Personal loans for freelancers shouldn’t be difficult. After all, you work as hard as salaried employees, and sometimes you even take on multiple jobs. With a few documents you can easily secure from government institutions and multiple loan services from a reputable financing company, you can apply for loans with ease.
If you’re looking for easy applications, low-interest rates, and fast approval time, you can rely on Asialink Finance Corporation! If you have more questions about their financing services, you can send a message here.