If there was one thing I wish I new before I became a freelancer was how hard it is to get a loan from a U.S. bank as a freelancer. Chase Bank doesn’t care that I have double the income I had as a staffer. They needed me to sign all these affidavits and crazy forms and FECK ME. The ONLY thing saving me was that I had a bunch of income from freelance that paid me as a staffer via W2 payroll.
So before you become freelance, make sure you buy a car and refinance your mortgage if need be. SHEESH. Or be prepared to wait a solid 2 years before banks will give you the time of day.
What do you wish you knew before you went freelance?
Doesn’t mirror my experience. Though I didn’t go through regular banks, but instead worked with business lenders directly to lease equipment. They just needed 3 months bank statements and the usual paperwork. I am registered as an LLC though, not as a 1099er. That can make a difference, but is worth it anyway. It also brings in a separate credit score into the picture.
I was able to borrow substantial amounts to front load the growth of the business in terms of equipment.
That is a problem with your bank, not your income stream.
Chase is too big. Try your local / specialty credit union where you are not one of a billion customers.
We have a local lender. We are an established customer with human beings; we know them and they know us and we’ve used them for multiple mortgages and lending. We are not a faceless entity, and that goes a very long way for relationship building and trust.
Randy, I feel your pain. Last year when I bought a house the experience was grueling and I wasn’t sure it would go through. Didn’t matter that my corporate revenue was higher than ever. They wanted to see W2, which was crap.
The credit unions often have very favorable lending rates in our experience. And if you need a car loan they were the lowest loans we ever saw.
Also, your don’t have to keep all your money & do all your banking at the new bank or credit union. Just open an account. Boom you’re a customer. You can still “bank with Chase”…
What i found amazing is how hard it was for me to get a mortage as a small company owner, but my one and only member of staff found it easy as she is in full time employment paid by good self. Amazing!
that your health insurance is going to rise about 10% a year and you don’t have any options like a group policy to help lower costs at least non that I know of that are of any good.
Definitely start a company they cap write offs for individuals but not companies so you can have more expenses.
