Empowering a new generation of freelancers
29% of the total invoices issued by freelancers get paid late by clients. Out of this, female freelancers get paid late 31%of the time and men get paid late 24% of the times. Freelancing can be an extremely rewarding career option, but it comes at its own risks, late payments being the most threatening one. This has been an eternal struggle for freelancers.
Research carried out by the association for the self-employed in the UK, that is universally applicable, shows that hardworking freelancers spend an average of 20 days a year just chasing late payments . Even with all this, 43% freelancers end up writing off at least one unpaid piece of work.
Couple this with the fact that banks and bigger financial institution’s don’t recognize freelancers when it comes to providing loans, and you have a credit crunch big enough to threaten the entire gig economy. Truth is that even today, bank’s don’t have a strong motivation to cater to this segment. Freelancing used to considered an arrangement of necessity, not choice, with business longevity being the primary concern of banks.
Banks love income predictability and regularity. But the people that actually need credit do not fit within the neat boxes of 9 to 5 jobs and the humdrum of bad office coffee and the monotony of a salaried job. Freelancers have been neglected by banks for many years now on the sole pretence that they do not have valuable assets to put up as collateral, and hence they shall pay unreasonable interest rates. This leads to the big lending gap.
There has been a recent upsurge in the number of freelancers operating globally, and this comes as a result of the pandemic forcing individuals into working remotely. This trend is particularly noticeable in the Asia Pacific region, where a reported 84% of hiring managers are outsourcing projects to freelancers.
Freelancing sites have also seen a considerable growth in freelancer registrations in the past few months. On Upwork, freelancers and client registrations jumped 50% since mid-March. Freelance job postings rose 41% to 605,000 in the second quarter of 2020 compared to the same period in 2019.
It’s important for this new breed of freelancers to have a seamless transition into the gig economy and develop sustainable careers. Financial stress can be a huge burden for freelancers, but teaming up with the right financial partner can help open up a wide array of opportunities. Having adequate resources and expertise to navigate themselves towards a successful career is of paramount importance, and Feige strives to help these freelancers do just that.
Feige wants to solve exactly this problem and allow freelancers the access to finance that they have very truly earned and deserved. As a young fintech start-up with access to a highly data-driven credit scoring system, they aim at bridging the working capital gap by providing credit lines at fair interest rates.
Here is how freelancers can avail the benefits of Feige’s credit line:
1. Connect your freelancing accounts and visualise your project information with us.
2. Apply for the credit line online, which won’t take more than 3 clicks. You will receive a response from us within 24 hours.
3. Receive a digital credit card instantly once the loan has been approved. A personalised Feige credit card will be mailed to you within days.
Hand over all your financial stress to Feige, while you focus on what you do best, focus on the art of Gig.
We are working tirelessly to build a solution that celebrates the art of freelance — join us by being a part of our waitlist at www.feige.io. If you are a freelancer who has a story to tell about your experience with banking or just wants to chat — drop us an email on email@example.com.
Stay tuned, as we gear up for the launch of our services by end of 2020. Join the fintech revolution!