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Freelancers are often seen as an underserved demographic when it comes to personal or business financing loans. After all, without a consistent paycheck, lenders will look at a freelancer as a riskier investment. That being said, it's getting increasingly easier to access financing lending as a freelancer.
Of course, getting a home-based business loan is easier in some places than in others. However, in many developed economies, lenders have adjusted to a rapidly growing demographic of freelancers and informal work and business arrangements.
Let's see some examples.
Freelance Financing in the US
The US serves as a good baseline example for the lending industry as it operates around the world.
Freelancers can often qualify for their choice in either personal or business loans. Personal loans are a simpler matter, but business lenders assess freelancers in a very similar way. They want to look at your financial history and current income, They already understand that freelancers' incomes are unstable, so they employ more complex mathematical processes to offer mutually agreeable rates and terms.
How to Qualify for Business Loans in the US
Normally, it doesn't matter whether a business has one employee (a single freelancer) or more. Lenders normally offer business loans to freelancers working under their own LLC.
As long as you meet the broader requirements that a lender has, you should qualify through your business entity.
If you don't have a business entity already, that's fine! Some US states are globally notorious for how cheap and easy they make it to open a business. US citizens and often non-resident citizens of other countries can quickly open an LLC. Much of the process can be completed online, and your private home or any qualifying mail address should suffice.
Make sure you look into the specific requirements of the state in which you live or would like to open a small freelancing business. For example, states like...