Unlike salaried employees, gig workers are freelancers and independent contractors who get paid on a job basis and do not have a fixed work contract. Independent contractors have a lot of freedom in their work and routines, which can be quite liberating if you have a dependable stream of clients.
Working in a flexible setting is fun until it stops paying bills. Many freelancers find themselves in this situation due to the seasonality of work or loss of clients. Freelancers are also not covered by any organization for health or old age.
So, they can’t take sick leaves and have to manage extraordinary expenses with their routine income as they might not be able to save after managing all their expenses. Here’s where cash advance loans for independent contractors come in.
Being a freelancer requires entrepreneurialism. One cannot just perform one’s day’s tasks and sit back. A lot of planning and budgeting is required to sustain a living with contractual work. Sometimes, despite all the planning, you might face a cash crunch and inevitable bill-paying deadlines.
Here are some instant cash advance loans for independent contractors to overcome last-minute expenses.
Best Instant Cash Advance Loans for Independent Contractors
1. Beem
This is the best alternative to an instant cash advance. It allows you to withdraw up to $1,000 from your regular bank deposits.
How to Apply?
The EverdraftTM feature of Beem allows you to access funds instantly before you receive your deposits. To do so, subscribe to the pro or plus plan on the app, check your eligibility for withdrawal, and access the funds you need in minutes.
Highlights
It is a hassle-free way of utilizing your money before it reaches your hands, and that too, without any interest fees or other hidden charges and clauses. The best part about Beem is that you don’t need any credit checks, due dates, or tips to pay.
Fees
EverdraftTM is the best-cost alternative for a cash advance loan. Subscribe to Beem Plus or Pro and check your eligible amount. There are no additional fees, interest, or due dates. Return only when there is a cash inflow in your bank account.
Pros
Anyone eligible to get instant loans can subscribe to it on the app.
Cons
The app’s eligibility criteria are not transparent. So, if your income frequency is too low, you might be ineligible for large-value loans, regardless of the quantum.
2. Branch
The one thing that can help employers retain more employees and improve productivity is ensuring the latter are happy with their pay. The only other thing that can beat the first one is for employees to get real-time access to their pay. Branch is an app for employers to simplify and streamline their payroll.
How to Apply?
Any employer can apply for an organizational account on Branch and onboard its employees on the portal. This way, employees can directly access funds from their Branch wallet or transfer them to another account. Employees also get updates about their Branch accounts through notifications.
Highlights
The shining feature of this app is that it’s facing the employer but is translating the benefits to the employees by giving them access to 50% of their earnings before payday.
Fees
It is free for the employees, given it’s the employer’s payroll management app.
Pros
It has different solutions for different categories of workers to simplify payment disbursals and tax compliance.
Cons
The app might not offer gig workers as many options as it does employers, but freelancers don’t usually need as many options.
3. Dave
This is one of the most user-friendly apps on the market for cash advances.
How to Apply?
When you download the app, sign up, and link your bank account with your Dave wallet, you get instant access to $500 ExtraCash without fees or due dates. You can settle it as and when possible.
Highlights
Setting up the account and getting funds takes less than five minutes.
Fees
There are no fees for instant cash loans.
Pros
The app is truly a financial haven as it allows you to save up on purchases made with Dave’s debit card, earn through filling out surveys, and control your finances. All Dave accounts are FDIC-insured up to $250k.
Cons
Being a checking account, Dave’s APY of 4% is way above the national average for checking accounts. However, it is still lower than the high-yield savings accounts.
4. GigAid
Being 21 years old is an essential requirement for availing GigAid loans. All other requirements are similar to those of other apps above, like linking your bank account and having verifiable income from freelance gigs.
How to Apply?
Downloading the app, signing up, loading your bank account, and verifying your income are all the steps you need to take to apply for a loan on GigAid.
Highlights
The app is mainly for fast-moving jobs such as delivery and ride-sharing.
Fees
The service is free of cost and does not involve any hidden fees.
Pros
The app is convenient and easy to use.
Cons
GigAid does not offer services in critical states such as California and others.
5. Giggle Finance
Working capital is something gig workers often struggle with. With their erratic income cycles and inherent uncertainties of the work style, they need a specific amount of working capital so they don’t ever have to choose between work and food. Giggle Finance helps independent contractors with their working capital needs.
How to Apply?
Like the other apps above, all you need to do to get a loan is download the app, apply for the loan, and get access to the funds.
Highlights
After the simple verification process, you can get up to $5,000. This app provides a greater value for the loan than other cash advance apps as it offers to pay for your work needs and all your bills, not just one.
Fees
It cannot charge you for the loan, as that would make it uncompetitive.
Pros
The app is excellent for people planning to get a big loan, as your transactions with Giggle Finance do not affect your credit score.
6. EarnIn
It believes in getting paid as and when you finish your work. Daily wages are essential for freelancers as they don’t have the flexibility to defer their payments.
How to Apply?
You need to download the app, sign up, and connect your bank account with your Earnin wallet, and you’re good to go.
Highlights
You can access $750 in a pay cycle, limited to your earnings, and cash out $100 per day.
Fees
There are no hidden fees or charges for taking instant advances, but there are disclaimers about third-party charges and other limitations.
Pros
Unlike banks, the app offers a lenient limit to access through instant loans and does not run your credit.
Cons
The pay period max feature increases your limit based on your credit behavior. It might only offer you a higher credit limit if you have a history.
7. Gerald
This is one of the best apps for managing finances. However, it charges nearly $10 for the exceptional service it provides.
How to Apply?
It’s a financial management app, so you might need to enter certain preferences for the app to identify your financial persona. But this might be skippable for extensive questions. The standard steps of downloading, signing up, and connecting to the bank account apply.
Highlights
While it provides access to earned pay up to 50% before payday, it is a comprehensive financial management app that lets you track and manage all your finances.
Fees
The app charges $9.99 for being a member of the Gerald community.
Pros
The benefits of giving this app the $10 may be justified by the financial tools it provides to get your finances in order.
Cons
It is chargeable.
Advantages and Disadvantages of Instant Cash Advance Loans for Independent Contractors
Instant cash advance loans, often used by independent contractors or gig workers, can provide quick access to funds. However, they come with both advantages and disadvantages. It’s crucial to carefully consider these factors before opting for such loans.
Advantages
- Quick Access to Funds
- Flexibility
- No Credit Check
- Online Application
- No Collateral Required
Disadvantages
- High Interest Rates
- Short Repayment Periods
- Risk of Debt Cycle
- Not a Long-Term Solution
- Potential for Predatory Lending
How to Get The Best Instant Cash Advance Loans for Independent Contractors
The best way for gig workers to get paid before payday is to use a digital banking app that can guide them through their financial management journey. These apps can help with planning pitfalls, but they shouldn’t be treated as alternatives to having a budget for the month.
Alternatives to Cash Advances for Independent Contractors
Cash advance alternatives are viable options for instant monetary requirements. These are better than cash advances because you will still have to pay them back. The alternatives are to use the funds you’ve earned in the month so far, so you only expend the limit you are certain to get by the end of the month or at any other time.
Conclusion
Cash advance loans for independent contractors are great solutions in this gig economy as they give them numerous opprtunities to grow and maintain their finances .
Remember, you can always try Beem to find the best loan offers to consolidate your debt and stay ahead of your financial management.
