Personal Loans for Independent Contractors and 1099 Workers

Posted by Frank Gogol
Updated on May 16, 2022

NOTE: U.S. workers are being drastically affected by the current outbreak of COVID-19. To skip to the section of this article that discusses the current COVID-19 and hits potential effects on independent contractions, click here.

Being an independent contractor, or 1099 employee, has great benefits. You get to make your own hours and your income isn’t capped. If you are a 1099 employee you also know that life comes with its fair share of obstacles including, but definitely not limited to, financial stress.

Being an independent contractor means you aren’t guaranteed any monthly income. This can easily cause your income to fall short of your monthly budget when business is slow. If you have a family you have to take care of, this can be especially tough.

If you need to relieve some of your financial stress by taking out a loan, you might find the following information helpful. We explain how loans for independent contractors work and how they can help you.

What is an Independent Contractor?

A 1099 employee is a worker who is self-employed and works as an independent contractor. If you are a 1099 employee, it means you are not employed by someone, but you work independently on a project-to-project basis.

1099 employees can work in various fields fulfilling various functions including working as consultants, agents, and brokers

There are many perks to being an independent contractor. These perks include having freedom and being the boss of your own time. There are, however, also quite a few drawbacks – especially when it comes to finances.

What are the Financial Issues Facing Independent Contractors?

There are a few sticky points where being an independent contractor might mean some additional financial stress. Let’s take a look at the most common financial issues 1099 employees face.

Your Income is Not Guaranteed

Having independence with your time is great, but it also means you cannot depend on anyone to provide you with income. Your income as an independent contractor is directly related to the number of projects you do, so there is no guaranteed paycheck coming in every month.

Even if you have a few clients on a retainer basis (which provides a steady income) this stream of income can stop at any moment — even if you have a contract with them. The old saying is especially true for independent contractors — no work, no pay.

You Pay for Your Own Business Expenses

Being your own boss also means you have to pay for everything yourself. You don’t get the computer, office, stationery, phone, or anything else included as you would with a regular job. But on the plus side, paying for business expenses means you can deduct the cost from your taxes.

You do, however, still need to make the money first before you can buy these items or deduct them from your taxable income. Having to pay for everything yourself can easily be an added and unexpected burden for independent contractors.

You Have No Benefits Plan

Not being employed means you don’t get any employee benefits. Most employees will get benefits such as health care or a retirement and pension plan when they work for an employer.

Working for yourself means paying for all of these things on your own and not getting any employer contributions. This can get very expensive very quickly, and many 1099 employees aren’t prepared for this when they leave their steady jobs.

Job Security Is Not Guaranteed

Like we said above, most 1099 contractors don’t have regular fixed income retainers that provide them with a steady income. Even if you do have a proper contract in place, there is always the risk that the contract gets canceled. There is no labor legislation that would protect you in such an instance as it would if you were an employee. So being a 1099 contractor means you don’t really have any job security.

Independent Contractor Loans

If you find yourself in a tight financial spot when business is slow or you are out-of-season, you can defend against a financial shortfall by taking out a personal loan for independent contractors. Taking out an independent contractor loan can help you meet financial obligations (like paying the mortgage) on time and also prevent critical services like health care from being suspended.

If things get really tough, you could even use your independent contractor loan to pay for your basic living costs and your family’s necessities. But, this should all be approached with some serious planning and regard for your future!

There are many lenders who offer loans for independent contractors. There are even some lenders who offer independent contractor loans to immigrants and visa holders.

Getting a personal loan is simple and easy, and with Stilt you can apply in 3 simple steps.

Independent Contractors and COVID-19

While many employees in the U.S. are vulnerable to losing their jobs during the current COVID-19 outbreak, no workers are more vulnerable than independent contractors.

In addition to working on a case-by-case basis without a necessarily steady income, independent contractors can rarely afford healthcare coverage in the U.S. This combination of lack of work and lack of insurance can be very dangerous.

And with the current COVID-19 outbreak and it’s highly virulent nature, getting sick can lead to independent contractors being unable to work. Moreover, their lack of healthcare can mean longer recovery times and time away from work or worse.

It’s incredibly important, now more than ever, that independent contracts take the steps and measures to ensure their financial safety and for a potential health emergency.

3 Simple Steps to Apply for a 1099 Loan

If you are considering applying for a personal loan for independent contractors, just follow these 3 simple steps.

1. Submit an Application

Your first step will be to complete an application and submit it. This can be done online. Once you have submitted your application, Stilt will send you an update on your application within 24 hours. If more information is required to process your application, Stilt will reach out to you and schedule a quick verification call.

2. Receive an Offer

Once your documents have been received and verified, Stilt will send you a promissory note to sign if you qualify for the loan. Once you’ve signed, the money will be transferred to you. The money usually takes only 2 to 3 business days to be deposited in your account!

3. Start Making Payments

Once you have received the money you can start using it. All that is left to do is to make the required payments. You can set up autopay on your account which will schedule automatic payments on your loan. If you want to pay off the loan sooner than scheduled you can also do this without being charged a prepayment penalty.

Auto Loans for 1099 Employees

Are there auto loans for the 1099 employees? Yes and no.

While there are no official auto loans designed specifically for contract workers, a personal loan (like the ones mentioned above) can be used however the borrower wants to use the funds. So, if a 1099 worker decided to take out a personal loan to purchase a car, they would absolutely be able to do that.

And generally speaking, the loan terms on a personal loan will be more favorable than those on one from an auto dealership!

Read More


There is no need to worry too much if you’re an independent contractor and business dries up for a season. You can still take care of your family’s basic needs and meet your financial obligations by getting a personal loan for independent contractors. Applying is quick and easy. Instead of using your time and energy worrying about your finances, you can focus your attention on growing your business and getting new clients.

Need a Loan? Get One in 3 Simple Steps

If you are considering applying for a personal loan, just follow these 3 simple steps.


Apply online for the loan amount you need. Submit the required documentation and provide your best possible application. Stronger applications get better loan offers.


If your application meets the eligibility criteria, the lender will contact you with regard to your application. Provide any additional information if required. Soon you’ll have your loan offer. Some lenders send a promissory note with your loan offer. Sign and return that note if you wish to accept the loan offer.


The loan then gets disbursed into your U.S. bank account within a reasonable number of days (some lenders will be as quick as 2-3 business days). Now you need to set up your repayment method. You can choose an autopay method online to help you pay on time every month.


About Stilt

Stilt provides loans to international students and working professionals in the U.S. (F-1, OPT, H-1B, O-1, L-1, TN visa holders) at rates lower than any other lender. Stilt is committed to helping immigrants build a better financial future.

We take a holistic underwriting approach to determine your interest rates and make sure you get the lowest rate possible. 

Learn what others are saying about us on Google, Yelp, and Facebook or visit us at If you have any questions, send us an email at [email protected]