Can you get approved for a loan with no employment?

In many cases, you cannot get a loan if you are not employed, since this is a vital thing that lenders look for in order to recover the money they lend out. 

However, there are different circumstances that lenders might consider, especially for those who are retired, freelancers or in between jobs.

According to recent statistics from the U.S. Bureau of Labor Statistics, as of December 2023, the unemployment rate is around 3.9%, but there are a number of people in between jobs or working in the gig economy who may still be eligible for a loan.

In this article, we explore the possibilities and challenges of obtaining a loan without a conventional job.

Understanding the Basics of Loan Approval

Traditional lenders such as those offering personal loans or credit cards typically evaluate an applicant’s credit score, income stability, debt-to-income ratio and employment history to determine their eligibility. 

Employment serves as a key indicator of an individual’s ability to repay a loan, providing lenders with assurance regarding financial stability.

Without employment or a stable income, people may have to resort to unpleasant forms of borrowing, such as those from loan sharks or predatory lenders, selling valuable items they own through pawnbrokers or other specific loans for bad credit, which often carry high interest rates.

Do Lenders Consider Alternative Income Sources?

Yes, while conventional employment may not be a prerequisite for loan approval, alternative income sources can bolster your chances of securing financing. 

Freelancers, gig workers and independent contractors often generate income through diverse channels, such as freelance projects, rental properties, investments or royalties. 

When applying for a loan, highlighting these sources of income can demonstrate your capacity to meet repayment obligations, thereby enhancing your eligibility.

Can I Use My Assets as Collateral?

In the absence of regular employment, offering collateral can mitigate the risk for lenders and increase the likelihood of loan approval. 

Collateral typically includes valuable assets such as real estate, car (see auto loans) or savings accounts, which serve as security against the borrowed amount. 

By pledging collateral, applicants provide lenders with recourse in the event of default, thereby offsetting the perceived risk associated with non-traditional employment situations.

How To Build a Stronger Credit Profile

A robust credit history can significantly influence loan approval decisions, irrespective of employment status. 

Timely payments, low credit utilization and a diversified credit mix reflect responsible financial behavior, instilling confidence in lenders regarding your repayment capacity. 

Prioritize maintaining a healthy credit score by managing existing debts judiciously, monitoring your credit report for inaccuracies, and avoiding excessive credit inquiries.

Can I Use Co-Signers or Guarantors?

In situations where securing a loan independently proves challenging, getting the support of a co-signer or guarantor can strengthen your application. 

A co-signer, typically a family member or trusted friend, agrees to assume responsibility for loan repayment if the primary borrower defaults. Similarly, a guarantor provides a financial guarantee to the lender, offering reassurance regarding the borrower’s creditworthiness. 

By involving a co-signer or guarantor with stable employment and a strong credit history, applicants can enhance their credibility in the eyes of lenders, potentially leading to more favorable loan terms.

What Are The Specialist Loan Options Available?

In recognition of evolving employment trends and changing borrower demographics, financial institutions have introduced specialized loan products tailored to accommodate non-traditional employment arrangements. 

These include self-employed mortgages, personal loans for freelancers, and small business loans for entrepreneurs. 

Such offerings often feature flexible eligibility criteria and customized repayment terms designed to cater to the unique needs of self-employed individuals and unconventional borrowers.

While securing a loan without traditional employment presents challenges, it is not a total barrier to borrowing. By exploring some of the avenues in this article, individuals can enhance their prospects of loan approval. 

However, it’s essential to exercise caution and conduct thorough research to select reputable lenders and negotiate favorable terms. Ultimately, with careful planning and diligent financial management, individuals can navigate the loan application process successfully, even in the absence of conventional employment.

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Is Your Business Attractive to the Outside World?

Having a business that proves attractive to the world is a thing all owners should strive for.

That said how would you rate your company when it comes to attracting business?

If you are doing all that is necessary to field a good business, the hope is everything falls into place for you.

So, what steps should you be taking if not already doing so to field a more attractive business?

Customer Service Can Never Be Overlooked

One of the big mistakes too many owners overlook is providing top-notch service.

With that thought in mind, is there more you can and should be doing when it comes to the level of service you offer?

By showing your customers how much they mean to you, you’ll stand a better chance of keeping the majority of them.

Make sure if you have employees that they too go out of their way to keep customers happy.

Given many consumers have many options when it comes to their shopping; you want to be their choice.

Also look to your use of technology.

Keep in mind that many consumers use a lot of tech in their daily lives. As such, odds are many of these people will expect you to do the same.

While some businesses manage to get by with little tech, most find it nothing short of essential.

So, this means you want to be sure your employees have all the tech they need to get their jobs done.

From being productive in the office to when they are out on the road, supply your team with whatever tech they need.

Speaking of needs, imagine for a moment if your business was not very good at managing money. Could you expect to be in business for very long?

Not only do your customers want a prosperous business to deal with, investors look to this in a company too.

So, you’re not going to attract too much interest in your business from investors or buyers if finances are a mess.

Do your best to not only keep adding revenue, but to think about what your business looks like should you opt to sell.

There can be one or myriad of reasons why you look to sell your business at some point.

That said you want an attractive business to put out in front of potential buyers.

You also want to know how to value a startup, namely yours should you decide to sell.

By knowing the true value of your company before you put it on the market, you’ll be in a much better spot. That is to get what you want for it.

Finally, you want to be sure your company’s reputation and your own for that matter are as good as they can be.

Whether you stay with your current business for years or move on, your reputation must stand out. That is stand out for all the right reasons.

In looking at how others may view your business, will you be happy with what you see?

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Top 10 Tips For Being An ADA Friendly Company – accessiBe

Running a company can be a difficult task, no matter what industry you’re in. There are many things to take into consideration when building your company from the ground up, and this will only become more difficult once you’ve been given the responsibility of hiring employees or opening up a new branch of your business. However, there are ways to make your website more accessible to people with disabilities by using available tools on the web, such as accessiBe.

1) Be proactive – The lawsuits are just starting to come in because of changes made by the Department Of Justice regulations which went into effect March 15th, 2012. Don’t get caught off guard, and never assume that the changes made to your website will be enough. Have a plan in place so you can update your site quickly should you find that there are areas for improvement.

2) Determine what measures need to be taken – The next step after assessing whether or not your company is ADA compliant is determining which changes need to be made to improve your site. You can get the assistance of someone familiar with disabilities, but you want to make sure they’re not part of the problem (ie; Not using flash elements).

3) Get some help – If you don’t have the skills or staff necessary to address these issues, it might be time to hire an experienced web development company. Make sure you vet companies carefully, so they’re not just throwing out buzzwords about making websites more accessible.

4) Know that it will take time – You can’t go into this with the idea that everything will be fixed by the time your site goes live. This is an ongoing process and can lead to additional costs down the road if you have a large company with many branches.

5) Not everyone will be reached – Just like any other market, there are some people that will never purchase from your site, and this is especially true when it comes to disabilities. You may never see an increase in sales of certain products, but at least you’ll know that you’ve done the best you can to meet your requirements under the ADA.

6) Avoid using marketing – While it may be tempting to use buzzwords like ” Accessible Website Design ” and other phrases, this is not the best way to go about it. Using terms that are too fancy only confuses customers when they’re searching for companies online.

7) The future – As time goes on, you’ll start to see more changes to the ADA regulations, which will affect your business. These are typically not large scale, but you want to make sure that everyone is up-to-date with these changes so they can adjust accordingly.

8) Stay current – There are many organizations and events that help to keep people informed of the latest news. For example, National Disability Rights Network has several seminars that can be beneficial to businesses and is a great way for you to network with other companies in your area.

9) Resources online – There’s an abundance of information on this topic available online. From the ADA website to other sources, there’s plenty of information for you to read and sort through so you can find the solution that works best for your company.

10) The bottom line – You’ll always come across opposition when you do something to better your business, and in this case, this means finding a web design company that understands the needs of its customers. Keep an open mind and remember that there’s always more than one solution to any problem or issue.

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Should Your Company Hire That Prospect?

Hiring the right talent for your company is not as easy as you may think.

Whether you have been a business owner for years or are the new kid on the block, it is important to get the right hires. That means hiring the right people and putting them in the right positions.

With that in mind, should your company hire that prospect?

Too Many Bad Hires Can Be a Problem

In deciding if you should in fact hire the next person whose resume you come across, here are some ways to go about it:

  1. Do your research – You want to take as much time and effort as needed when it comes to researching each prospect. This will oftentimes mean the Internet is going to be involved. That said you can do searches online to get more info on the prospective candidate. For instance, say you might be looking to hire a delivery driver. You want to make sure they have a clean record at the wheel. Not having such a thing can make them a danger to others on the road. They could also prove a liability to you should they get into one or more accidents while driving for you. You can go online and find out how to look up the driver’s license number of the individual. Getting any solid background info on their driving record could sway you one way or the other. Also look to see if there is any criminal record involved with the prospect. While something minor may not scare you off, something major could easily make you take a pass on them.
  2. Know what needs are – It is key you know what your company needs are before hiring the next person to work for you. If you are short in specific departments, you may well look to fill those roles first. In the event your company is growing, you could have many areas in need of more talent. The key to any successful company is providing consumers with the best service. With that in mind, be sure you have all that you need. One or more notable shortages in manpower can lead to reduced sales and revenue at the end of the day.
  3. Will they be a good fit in your company? – Finally, even if one’s resume screams talent and experience, will they be a good fit at your place of business? You have to consider the other people working for you now. How would a new employee potentially fit in with them? It is important to remember that personalities do not always click. As such, you have to try and fit the right pieces of the puzzle together. This will better ensure a smoother operation within your company. This is one reason it is good to have some people the prospect would work with sitting in on interviews. The former can get a better sense of if this person could work out.

As you think about hiring your next employee, what will be your focus and are you confident you will get it all right?

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3 Changes You May Make for Your Business

Do you have any thoughts to making significant changes to your business anytime soon?

In the event you say yes to such a question, what might those changes be?

Making one or big changes to something you’ve worked for over the years can seem a little daunting.

That said it is important to have faith in any big decisions you want to move ahead with.

Changing the Status of Your Business

When considering changes for your business, here are three that may come to mind and why to consider them:

  1. Organizing in a different way – Have you given thought to the possibility of changing? That is how your business is legally organized? For example, what about the notion to convert C Corp to an LLC for your business? Doing this can allow shareholders to take proceeds. They can then make contributions with them to the LLC. Such a conversion can also mean tax benefits over time. Be sure you do research and speak to pros familiar with the conversion process. Do what it takes to avoid a big tax bill you want no part of it. Organizing in a different way can also mean you will expand beyond your present base. If you only have one office or other sort of workspace, any thoughts to expanding? This can lead to more business. It may mean going outside the town or city you are in now. By knowing when the proper time to grow your business is, you could set the stage for a boom. This is one that will take your company to new heights.
  2. Changes in management – Depending on the size and scope of your business, might it be time to shake things up? That is with your management if you have people in such roles? Such changes are big and should not be taken lightly. That said you may be at a point where you sense such a move can better propel the business forward. One of the keys to having a successful business is having the right people in the right positions. So, take stock of those individuals you have now and what they are doing. You may well decide that some change is needed and can’t wait.
  3. Go in a new direction – Although it is a big move, would you consider taking your aspirations in a new direction? This can mean selling what you have now and starting fresh. Even though such a move is a big one, you may feel it is in your best financial interests to do this. So, before you make such a move, sit down and think it over from start to finish. Do you have the financial means to sell your business and open something brand new? That of course depends in part on what kind of offers you may get for your current business. You’d also need to think if you have employees about how such a move would impact them. Finally, what are the trends showing in the industry you are thinking about going into? Doing all this research is key before considering a move. Remember, it will have a major impact on your life in more ways than one.

In making changes for your business, are you confident you will make all the right decisions?

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What To Do When You Get In a Car Accident

When you find yourself in a car accident, everything can get hazy.  Whether you’re physically injured or not, the shock that occurs following something as frightening as a vehicle collision is enough to leave people feeling in an almost dream-like state.  Unfortunately, as a result, a lot of people wind up making mistakes throughout the process.  Since it’s such a delicate situation, it’s important that you do things right.

Since you can be so discombobulated as a reaction to the stress, it’s helpful to have a list of what you should do onhand.   Take a look at your handy step-by-step list of what you should do after getting in an accident. 

Check For Injuries

First thing is first, you’ll need to ensure that you don’t have any physical injuries.  Make sure that you check yourself and anyone else in your car for injuries.  If you realize that you or someone else in the car is hurt, put everything else on hold.  The most important thing is your well-being.  Dial emergency services immediately or ask someone nearby to do so.

Move Your Car

If you can, move your car out of the way of other vehicles and into safety.  Often people leave their cars in a hazardous place after a collision, and it winds up causing another accident.  If it’s not possible to move your car then ideally you should at least move yourself.

Call The Police

Even if your accident is nothing other than a fender bender, you should call the police to create an accident report.  An officer will interview everyone involved in the accident and write it all down.  They’ll chart out what occurred in the accident, providing documentation for the event.

When you make a claim with your insurance company, they’ll refer to the police report to help with the process.

Get The Other Drivers Information

It’s important that you get the contact information of the other driver.  Make sure that you get not only their name and phone number but also everything about their vehicle.  Take a photo of their license and license plate, as well as any damage to their car.

If they’re a responsible driver, they’ll have their insurance company and policy number with them to provide you with as well.

Don’t Incriminate Yourself

Often when people experience a traumatic event like a car accident, they assume it’s their fault, particularly if the other driver is angry.  Don’t apologize or admit fault whatsoever unless it was undoubtedly your fault.  However, as a general rule of thumb, you should avoid discussing details with the other driver.  Let your insurance handle it.

Call Your Insurance Company

Once you’ve done all of these steps, you can call your insurance company to notify them of the accident.  They’ll start a claim and tell you exactly what you need to do.

Conclusion

By having this list onhand, you’ll be sure to make sure that you don’t forget any critical steps.  That way, you can rest assured that you have the right information with you should anything happen while driving.

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