Freelance income confusion
So I work freelance and my income jumps around a lot. Banks don’t seem to like that very much, which makes borrowing awkward. Recently someone told me alternative credit could be more flexible for people with irregular income. Do you have recommendations on what to know about alternative credit in Canada and whether it actually helps freelancers?
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I freelance as well and ran into the same issue a while back. My income looked “unstable” on paper even though the yearly total was fine, and a bank turned down my small credit request. A friend of mine (a web designer) had a similar situation and ended up using an alternative lender that looked at his bank deposits and client contracts instead of just fixed salary history. It worked, but the interest was definitely higher. Alternative credit in Canada can be more flexible for freelancers, but it’s usually a trade-off between easier approval and higher cost. Worth researching before jumping in. I also came across this article that explains the private credit space pretty well:
Arif Bhalwani . It helped me understand why this type of lending is growing and where it fits.