A Cash Advance for Gig Workers: Everything You Need to Know

Gig workers are people who don’t have regular full-time jobs. Instead, they earn money by doing freelance work, short-term contracts, or temporary jobs. Instead, they earn money by doing freelance work, short-term contracts, or temporary jobs. Because their income isn’t steady, it can be hard to keep up when expenses are higher than earnings. A cash advance for gig workers is a much-needed service offered by Fundo.

Without a regular paycheck, it’s also tough for gig workers to get loans. A recent report says that 36% of workers in the U.S. are freelancers, meaning many people need a different way to borrow money. This is where cash advances come in.

A cash advance is designed for gig workers. It helps them stay financially stable and focus on their work without worrying about money problems.

What is Cash Advance for Gig Workers?

A cash advance for gig workers is like short-term funding that provides quick access to a portion of future earnings. The eligibility criteria is based on the applicant’s anticipated income rather than their credit record and employment history. Hence, it is more accessible than traditional loans. 

When you apply for a cash advance, your funder makes an assessment via bank statements or your portfolio on whichever digital platforms you work on. They then determine how much cash advance you qualify for. 

There are two main types of cash advances available to gig workers:

• Payday Advances: small, short-term loans that are due on your next payday. Same applies to the gig workers, and the repayment schedule is aligned with their next payout from a freelance platform. 

• Merchant Cash Advances: Some funders offer advance money based on a percentage of your future sales or earnings. 

Why do Gig Workers Need Cash Advance for Gig Workers?

Now that you know what a cash advance is, let’s go through some of the reasons you might need to apply for it as a gig worker:

Irregular Income

Gig workers often experience fluctuations in their income due to varying demand for their services. A cash advance can help manage periods of low earnings.

Emergency Expenses

Unexpected medical bills, car repairs, or other urgent expenses can disrupt a gig worker’s budget, making a cash advance a valuable tool for addressing these immediate needs.

Slow Payouts from Freelance Platforms

While some gig platforms offer weekly payouts, others might have longer payment cycles. Cash advances can bridge the gap until the next payout.

Seasonal Workflow Fluctuations

Demand for certain gig services can be seasonal. For example, rideshare drivers may earn more during holidays and less during off-peak times, making cash advances useful for maintaining cash flow during slow periods.

Investment in Tools or Equipment

Gig workers like photographers or delivery drivers may need to invest in equipment or vehicle repairs. A cash advance can provide the funds necessary for these expenses, allowing them to continue working efficiently.

5 Benefits of Cash Advance for Gig Workers

Here are five key advantages of cash advance for gig workers:

Easy Application Process

Most funders offering cash advances to gig workers have a simple and straightforward application process. Many can be completed online without the need for extensive documentation.

At Fundo, we take it a step forward and leverage technology to get you a real-time decision right when you apply. It’s as simple as submitting basic information, connecting to plaid, and receiving an offer!

With other funders, gig workers can apply using their bank statements or screenshots of their earnings from the gig platforms they use, allowing them to access funds without complicated paperwork.

Quick Approval

Cash advances are known for their rapid approval timelines. Many funders can approve applications within a few hours or even minutes, making it possible for gig workers to receive the money they need quickly. 

This speed is crucial for covering emergencies or seizing time-sensitive opportunities.

Flexible Repayment Terms

Many cash advances offer flexible repayment options tailored to the income patterns of gig workers. Repayments can often be structured to match the borrower’s income cycle, allowing them to pay back the advance when they receive their next payout from a gig platform.

No Collateral Needed

Unlike traditional loans that might require collateral such as a car or house, cash advances are usually unsecured. This means that gig workers don’t have to risk their personal assets to access the funds they need. 

The advance is based on their future earnings rather than their physical property.

No Credit Check

Many gig workers may not have a high credit score due to the nature of their work or the challenges in maintaining a steady income. Cash advance lenders often do not require a high credit score, or any credit score at all for approval, focusing instead on the applicant’s earning potential. 

This makes it easier for those with less-than-perfect credit to get the financial support they need.

How to Get Cash Advance for Gig Workers?

If you think cash advance is a suitable option for you, here’s how you can apply for it:

Determine How Much You Need

Start by determining the exact amount of money you need and your purpose for obtaining a cash advance. Consider your repayment ability based on your typical earnings from gig platforms. This step is crucial to avoid borrowing more than you can afford to repay.

Reliable Funders

Not all funders provide cash advances specifically tailored for gig workers. Look for financial services that understand the gig economy – like Fundo, where you can get a same-day advance in less than 5 minutes!

Check Eligibility Requirements

Different funders have different eligibility criteria. Many of them require a consistent income stream from a gig platform like Uber, DoorDash, or Upwork. Make sure to understand these requirements before applying to avoid rejections.

Get the Documents Ready

Most funders require documentation to verify your identity and income. This may include bank statements, proof of earnings from gig platforms (such as screenshots or transaction history), government-issued ID, and contact details. 

Instead of gathering all these lengthy documents and sending them over lengthy back and forth emails, try out Fundo’s seamless application which skips all that and gets straight to your offer after just a simple plaid verification!

Apply Online

Many cash advance providers offer online applications, making it convenient for gig workers. Visit the funder’s website and complete their online application form, providing all required information about your earnings, work history, and personal details. This process often takes just a few minutes.

Read the Advance Terms

Before accepting an offer, read through the terms and conditions of the cash advance. Pay close attention to all the advance details.

Make sure you understand the repayment structure as some funders may deduct repayments directly from your bank account when you receive income from the gig platform.

Sign the Agreement

If you are satisfied with the terms, sign the advance agreement electronically. This formalizes your acceptance of the advance and its terms, such as repayment amounts and schedule.

Receive the Funds

Once your application is approved, the cash advance is typically transferred directly into your bank account. The time it takes to receive the funds can vary depending on the funder. Fundo offers same-day and next-day funding options. 

After receiving the advance, make sure to create a plan for how you will manage the repayment. Set aside funds from your future earnings to ensure you can meet the repayment deadlines without impacting your financial stability.

Contact Fundo for Cash Advance for Gig Workers

At Fundo, our main goal is to facilitate gig workers. You can easily apply online. We will review your request, and if approved, transfer the amount to your account the same day. You can apply for up to $10,000 in a single day, which makes Fundo a great choice in case of emergencies. 

The customer support team is always available to assist you through the process. Reach out, and apply for a loan today!

Frequently Asked Questions

How does cash advance work?

A cash advance works by providing an applicant with an upfront sum based on their future earnings. The funder evaluates the applicant’s earning potential, and the advance is repaid through deductions from future payouts, either automatically or on agreed-upon dates.

Is there a limit on cash advances for gig workers?

Funders always have a limit on how many advances they can fund to gig workers. This is often calculated based on your average monthly income or earnings history. 

Need funding without the stress of credit checks or traditional loan hurdles? Fundo is here to support gig workers and self-employed individuals like you. Take the first step toward financial freedom—click ‘Apply Now’ and secure the funds you need today