Earlier this year the RSA published a report that explored the life of those working in a start-up.  It was born out of the growing popularity of a freelance or self-employed lifestyle, with both America and the UK seeing a huge boom in self-employed status over the last decade.

The report highlighted that whilst many self-employed persons regard themselves as happier than when they were in employment, there are a number of risk factors at play.

For instance, the status comes without many of the things employed people perhaps take for granted.  Statutory Maternity Pay, Statutory Sick Pay, paid holidays, training support and employer pension contributions are all things that self-employed people have to do without.

Self-employed income

The report also explored the typical income of a self-employed individual, revealing that it is usually some way below that of their employed peer.  This is then accentuated when clients impose lengthy payment terms, resulting in a significant lag between completing work and getting paid for it.  And this is before one considers the natural fluctuations in the work itself.

Cash flow can, therefore, be a major issue for the self-employed with there often being significant variance from month to month.  One startup that is attempting to help flatten out that income is called Even.

They’re a financial company that offer interest free loans to freelancers for a small weekly membership fee of $3.  The aim is to allow freelancers to ensure a regular income from month to month and avoid the undulations that can prove so challenging.

Usage is straightforward and is done via the Even app.  The app will analyze the bank account you connect up to it with to determine your average monthly income.

When you exceed this amount, the app will chivvy away the extra and put it in a rainy day fund to help you during the lean months.

You can also use Even to secure an interest free loan, which is repaid via the funds paid in during the good times, with the hope being that it will shift from an irregular income stream to something more akin to a salary, thus enabling the freelancer to budget and plan as someone with a steady income can.

The service is particularly aimed at people on a low income and is a significant shift away from traditional pay day lenders that are designed to provide short-term financing (at high cost).

The site is currently in Beta testing so is operating on an invite only basis, but is expected to launch to the wider public early in 2016.  You can learn a bit more about Even via their promo video below.