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CASH LOAN

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Active Member
Marites O Member Since: Jun 22, 2015
1 of 12

Hi Upwork,

How about giving 'cash loans' to Top Rated Freelancers (with at least 5 years of Upwork experience)?

As a Filipino freelancer, it's hard for us to apply for a cash loan here since we are not connected with companies and government. Yes, I have read that some were able to have a cash loan via Pag-Ibig but still they were asked for the BIR thing, that I don't have (most freelancers don't have this).

POSSIBLE or IMPOSSIBLE?

To my fellow freelancers, please comment and/or share your thoughts regarding this.

Thank you.


Sincerely,

MARITES OBANA
Freelancer from oDesk to elance-oDesk to Upwork
Member since 2009
Full-time freelancer since 2010

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Community Guru
Rene K Member Since: Jul 10, 2014
2 of 12

Upwork doesn't hold a banking license, so even if they wanted to do this, they couldn't.

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"Where darkness shines like dazzling light"   —William Ashbless
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Active Member
Jared S Member Since: Mar 25, 2019
3 of 12

Hi Rene,

What about third party lenders entering the equation? 

Are you affiliated w/ Upwork at all?

Jared

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Community Guru
Petra R Member Since: Aug 3, 2011
4 of 12

Never going to happen.

 

For starters it is a bad idea on every level, secondly Upwork can not act like a bank, it is not licensed to do so and could not issue loans even if it wanted to, which it would be nuts to want to.

 

If you registered your freelancing business properly in your country you would be able to access stuff like that. 

 

 

 

 

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Community Guru
Preston H Member Since: Nov 24, 2014
5 of 12

Marites:

 

Thank you for your post. It actually IS legal for companies to loan money, provided they go through the legal process necessary to become permitted to do so. This is not an issue of legality.

 

This is an issue of purpose and asking how this would be of benefit to Upwork.

 

You need to remember that Upwork is a for-profit business. It's business model is based on the concept that clients (not freelancers) are its customers. Freelancers are Upwork's partners in earning money from clients.

 

You may be confused because Upwork's business model provides such a huge benefit to freelancers. So it can be natural to wonder: How else can Upwork help me?

 

But it is not Upwork's goal to help you.

 

There is a difference between:

 

"Something you would personally like Upwork to do."

 

and

 

"Something that would benefit Upwork or its clients."

 

Can you explain how issuing cash loans to freelancers would benefit Upwork or the clients who use the platform?

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Community Guru
Tiffany S Member Since: Jan 15, 2016
6 of 12

@Preston H wrote:

 

 

Can you explain how issuing cash loans to freelancers would benefit Upwork or the clients who use the platform?


 I'm definitely not suggesting that Upwork would or should enter into the loan business, but I think the answer to this question is that it might stop freelancers from relentlessly hounding clients because the milestone was submitted 36 minutes ago and hasn't been approved.

 

 

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Community Guru
Tiffany S Member Since: Jan 15, 2016
7 of 12

@Preston H wrote:

 

 

Thank you for your post. It actually IS legal for companies to loan money, provided they go through the legal process necessary to become permitted to do so. This is not an issue of legality.

 


 This is kind of a silly statement. It's like saying "It IS legal to fly a commercial jet, provided you go through the legal process necessary..." or "It IS legal to perform surgery, provided..."

 

Obviously, if Upwork were to become a fully licensed bank, it could make loans. The same is true of your local grocery store, your neighbor's college-aged daughter, and a company that rents out carnival equipment. But, like Upwork, none of them are fully licensed banks, and none could easily become licensed banks because their businesses are not set up in a way that qualifies them.

 

Alternatively, Upwork might qualify for lending licenses on a state-by-state basis, but the requirements differ from state to state. Some would be impossible to obtain, some would require a lot of changes and documentation, while a few would be simple to obtain. And, that's just within the U.S. To make loans outside the U.S., my understanding is that since Upwork isn't a fully licensed bank, an international lending license would be required...and would have to be obtained outside the U.S., meaning the creation of a foreign corporation for that purpose.

 

 

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Community Guru
Reinier B Member Since: Nov 3, 2015
8 of 12

All other things such as licenses aside; freelancers who require cash loans to survive from day to day should not be in this line of work, regardless of where they obtain, or hope to obtain their cash loans.

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Community Guru
Jennifer M Member Since: May 17, 2015
9 of 12

sweet! Upwork is now the welfare office. lol

 

 

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Ace Contributor
Karlo V Member Since: Mar 26, 2015
10 of 12

Do you have any idea how much scam would that bring? Just imagine how many people would try to somehow loan money and never return it? Not sure if this could work on platform like this Smiley Happy

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