Payday Cash Advances Protect Independent Contractors from IRS Penalties

Independent Contractors Hight Vulnerability to Tax Burdens

Tax season is never a pleasant time of year, but with payday cash advances readily available, it may lose at least some of its sting. Independent contractors in particular are quite vulnerable to extensive tax burdens. Holding down at least one steady job, they oftentimes work long hours to build and grow a business that does not yet provide enough income to let go of the day job. Operating often as independent contractors, these consumers face a staggering tax burden that may derail a small business before it has a chance to grow.

Consider the following ways that payday cash advances benefit independent contractors when it comes time to pay Uncle Sam.

1. A cash advance makes this loan available even to entrepreneurs whose unforeseen fiscal emergencies might have sufficiently dinged their personal credit to such an extent that they do not qualify for conventional loan products. Lenders offering payday cash advances rely on the presence of a steady income – such as a day job or other stable, verifiable source of revenue — when making their lending decisions.
2. An online cash advance facilitates a quick turnaround time. Independent contractors with IRS ultimatums appreciate that payday cash advances put them into a positive cash flow position, which in turn makes it easier to negotiate with the tax authority. In fact, when timing is of the essence, a same day cash advance can make the difference between a successful offer in compromise on the one hand and wage garnishments as well as the possible collapse of a budding business, on the other.
3. An independent contractor can factor in payday cash advances when planning on satisfying IRS debts and other expenses. When s/he applies to get a cash advance, all repayment terms are clearly outlined and timelines to meet are defined. There are no surprises and – as was in the past the practice of credit card companies – no sudden and burdensome increases in interest rates.
4. A cash advance loan does not inhibit an entrepreneur’s ability to grow the business through the generation of a heavy debt overhead. Credit cards may seem convenient, but they introduce years of indebtedness into the consumer’s – and independent contractor’s – life. A quick cash advance is as fast to pay off as it is to apply for and receive. There is no long-term fiscal effect.
5. Relying on this short-term loan to help meet business tax burdens does not affect the credit of a small business. Cash advance paperwork is handled by the proprietor and affects verifiable earnings from a salaried position and not the independent contractor revenue. Thus, the business remains free and clear of any debt obligation.
6. Only faxless cash advance loans truly benefit the entrepreneur on the go. S/He may apply from anywhere at any time, and documentation can be handled easily and speedily via the ‘Net and mobile devices. For the entrepreneur on the go who also holds down a regular job on the side, this is a crucial aspect of truly making a payday cash advance into a convenient financial product.

It stands to reason that the financial downturn has caused many employed and salaried workers to look to independent contracting work in the hopes of turning a hobby or special skill into a viable source of income. Payday cash advances make this hope and dream a little easier to achieve, even when tax burdens and potential credit problems may threaten to put a stop to it.