Last Updated on January 9, 2021 by Yetty Akindele
Moves is a one-of-a-kind financial service platform in Canada for the sole benefit of ‘gig’ workers.
With the main purpose of helping independent workers attain financial ease in their daily money hustles, this is one platform that has proven to be beneficial to the growth of non-salaried workers.
The ‘gig’ economy has had a huge boom over the last few years. Statistics have shown that about 8.2% of Canadians were involved in Gig work as of 2016 and rapidly increasing ever since.
This translates to around 1.7 million workers aged 15 and over. A considerable increase from 5.5% of the workforce being involved in freelance work as of 2005.
With the existence of many digital freelance platforms to score jobs on a global level, gigs exist for writers, designers, programmers, etc. However, non-digital freelance work dominates the headlines.
These include but are not limited to rideshare drivers ( Uber, Lyft ) food couriers ( DoorDash, Skip the dishes ), grocery deliveries (Instacart), and many more service-oriented workers.
GIG WORK DILEMA
Without a doubt, gig workers also face financial difficulties as with most businesses. They have to incur costs to help kick off their new venture or to handle certain work-related requirements.
For instance, freelancers must buy and maintain their own equipment no matter what industry they work in.
Many gig workers choose to work from the comfort of their own homes, but if they need to travel or work from elsewhere, they must secure and pay for their own travel.
In comparison, companies usually bear these costs for their salaried employees. As a result, one of the problems gig workers face is financial uncertainty. Most gig workers do not have a steady salary since they are paid on a gig-to-gig basis.
Some months may be lucrative, with gig workers securing multiple gigs, but others may bring a dry spell, with little to no gigs. Hence, the income of gig workers fluctuates.
This fluctuation doesn’t have to be bad, especially if gig workers can manage their money well and save up for dry spells.
However, one aspect that is heavily affected by this financial uncertainty is borrowing ability. Since gig workers have no set income, lending institutions are less willing to give them money.
The nature of their repayment can become unpredictable, which is why they’re considered risky borrowers. This means it’s incredibly difficult for freelancers to secure a line of credit- the problem that Moves Financial aims to solve.
What Is Moves Financial?
Moves is a financial services digital platform that supports the objectives of independent freelance workers/self-employed.
Gig workers most times are unable to get approval for loans issued by traditional lenders. The reason behind this could be the lack of a set salary or a bad credit score.
However, Moves Financial offers loans without pulling your credit profile, thereby, helping clients build a new and better financial reputation.
Just like an employed individual can get a bank loan, Moves provides low-interest loans for freelancers via lines of credit.
After all, it’s one of the aims of the company to bridge the gap between the financial certainty of employed salaried persons and that of independent gig workers.
Using innovative technology, Moves offers easy access to credit anywhere from $500 up to $2500 for gig workers.
Lines of credit from Moves Financial also come with a universal AIR OF 15.65% and the flexibility of either a 13-week accelerated repayment term or a 26-week standard repayment term. As a plus, there is no early repayment fee.
After comparing it to other financing services, you’ll see that you can save up to $600 with Moves. If that wasn’t enough, getting set up with Moves is a lot easier too.
To avail of their services, you have to be working as a freelancer for companies such as; Uber, Uber Eats, Lyft, DoorDash, Dolly, TaskRabbit, Skip the Dishes, Instacart, Amazon Flex, Postmates, Caviar, Rover, Upwork, Fiverr, and a couple of others.
What does Moves Financial offer?
Moves has worked alongside gig workers to design affordable financial products specifically for rideshare drivers and self-employed freelancers;
1. Affordable, Accessible, and Flexible
The Moves Financial affordable line of credit is for amounts ranging from $500 to $2500. What makes this loan offer particularly interesting is that it helps bypass the stringent requirement by most other lenders- having a steady income or a house.
As long as you are a gig worker on any of the eligible platforms, you are auto-approved for an account with Moves. Like I mentioned earlier, the affordable loan is to be repaid over a period of 13 to 26 months. It has an interest rate of approximately 15.65% AIR.
This is an excellent product for people looking for quick access to money. The funds are automatically transferred to your bank account within 1 to 3 business days after your application is approved.
Repayments are also automatic. Every week a pre-decided amount is taken from your bank account as repayment.
As expected, you pay lower cumulative interests when you opt for the 13 weeks repayment plan rather than the 26 weeks repayment plan.
2. Loans Designed for Uber & Lyft Drivers
Moves is designed such that there is easy access to a low-interest line of credit by this group of freelancers. This is especially important since these types of work usually come with unexpected expenses.
Take for instance a car or bike repair. It doesn’t just apply to vehicle maintenance. Loans could be used for diverse needs including sudden medical bills. When the road gets bumpy, Moves helps gig workers create a financial backup plan to cover unexpected expenses.
3. Financial Help for Self-Employed
If your major source of income is from freelancing and gig work, you are considered self-employed.
Moves loans provide a financial safety net that allows you access to a low-interest line of credit without focusing on your credit history as a criterion for approval.
You can apply to Moves for a diverse number of reasons- bill payments, work equipment upgrades, medical bills, etc. You have the freedom to decide what you want to use the line of credit for!
Eligibility Criteria for A Moves Loan
To avail of this loan, you have to meet Moves Financials’ criteria. This means you must;
- Be a resident of any one of the following Canadian provinces; Ontario, Alberta, British Columbia, and Manitoba.
- Have a bank account that you are actively using (at least 6 months of activity)
- Have received an income from an approved gig in the last 3 months or 90 days.
Your credit utilization, non-sufficient funds charges, and average balance in your bank will also impact the assessment of your credit limit.
How does Moves Financial work?
Using Moves Financial is relatively easy – both applying for a line of credit and repaying it are simple. The website also has a friendly user interface that is easy to navigate.
How to apply
1. Connect Your Gig App
Moves is an online platform and as I stated earlier, has a great and easy-to-use interface. You can get started directly from their website and create an account
Consequently, you’ll need to connect your gig platform to verify your gig earnings. The more gig earnings you provide via multiple apps (ex. Uber AND Lyft), the more credit you will have available.
Moves will then analyze your earnings and you’ll be given your initial credit limit within 1-3 business days.
2. Connect Your Bank Account
Once you’re set up, you can decide to connect your bank account. Moves works with Plaid (which is a third-party service and a subsidiary of VISA) to make deposits into your bank account whenever you decide to use the money.
3. Get Funded
Regardless of the reason, you’ll have money in your Moves account whenever you need it. With Moves, you’re given the freedom to access a portion of your credit or the full amount! Depending on your bank’s relationship with Plaid, you should automatically receive the funds in your bank account via electronic transfer within 1 to 3 business days.
How to Make Repayments
One of the most important aspects of borrowing money is repaying it.
The repayment model with Moves is suited to independent workers- weekly payments. This makes payment quite easy to achieve since most gig workers earn on a daily basis especially with rideshare drivers and food couriers.
Moves has two payback plans regardless of the amount. A 13-week payback plan and a 26-week payback plan, as stated before.
Interest is only charged to the amount taken out. Moves’ 15.65% interest is added to the total amount that is loaned. Your weekly payments include the accumulated interest alongside the total amount that is borrowed. This is then divided by the number of weeks you chose as a payback plan.
You pay this amount every week from your bank account via auto-deposits, so you don’t have to worry about forgetting to make any of your repayments!
At the moment, gig workers are only able to take out one loan at a time. Once the loan is repaid, they are able to borrow again instantly without having to go through another approval process.
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Will Applying on Moves Affect My Credit Score?
Moves has stated on its website that applying for their services does not have anything to do with your credit score.
They do not carry out any credit checks before approving your application. This assures that contrary to most other lenders, your credit score isn’t affected.
Is Moves Financial Safe?
Moves Financial is a relatively new and less popular business, so people have questions about its safety. A firm that gives loans and doesn’t mind your bad credit history sounds too good to be true for some people.
The fact that it uses VISA’s Plaid means that it’s a secure website, and you don’t have to worry about payment fraud.
Moves Financial is a very safe to use platform reckoning from the experiences and the data we have online. The reviews of Moves Financial we have come across are majorly in the positives.
The service has a rating of 4.7 from 28 reviews on Trustpilot as of the time of writing this article. Hence, it’s safe to assume that Moves Financial is a legit and safe company.
Pros and Cons
Pros
- It is fairly easy to apply for their loan, making it more accessible.
- Your bad credit history doesn’t matter.
- The amounts and the plans are reasonable making your loan experience a breeze.
- Little to no chance of cyber fraud, suggested by their use of VISA’s Plaid
- Little to no chance of getting caught into a debt trap since the amounts to be repaid are modest.
- Paying back every week keeps a great weight off your shoulders, especially as an independent worker.
- Full-time support is available.
- The range of the amount you can get easily accommodates an independent worker
- Customers are treated with respect.
Cons
- Available only in 4 provinces in Canada (Ontario, Manitoba, Alberta, and British Columbia).
- To have to pay some amount back every week may be a problem for those gig workers that may not be getting tasks.
- It may not be helpful to new or aspiring independent gig workers. This is because you need to have an earning history before you get access to loans.
- Loans are accessible to gig workers on approved platforms only.
Moves Financial hits a very specific niche. You have to be a freelance/self-employed worker, with your gig on one of a number of companies listed by Moves.
This strict criterion is justified since Moves Financial essentially aims to provide financial ease to freelancers in Canada. Additionally, the gig community is naturally concentrated in the provinces they operate.
The best part about Moves Financial is that they do not care about your credit history. Their loan terms are also reasonable enough to not trap you in some kind of long-term debt.
As their website states, they are willing to negotiate terms and rates too. This is of great help to customers since every customer has different needs suited to their plans and work.