There are two key types of lenders available for freelancers and entrepreneurs. Here’s a brief overview:
‍
Banks: If you’re looking for a term loan or a business line of credit, a bank may be your best place to start. You can work with an advisor in-person or start the application process online to find out what type of loan you can qualify for. Banks will often look at your personal credit history when approving you for a loan. If you already have a personal account with the bank that’s in good standing, you might have an easier time getting approved for funds.
‍
Online lenders: If you’re hesitant about working with a bank, there are online lenders available across North America that can provide you with access to loans and lines of credit. Many online lenders allow you to complete your entire application online, followed by a phone call with a representative to review your information and discuss details. Applying online can be quicker than working with traditional lenders, but because some of these lenders don’t require credit checks, they may offer much higher interest rates on their loans. Make sure you’re able to afford monthly payments before signing up for a high-interest loan.