When loan for the self-employed many banks see red!
As a matter of fact, many banks initially refrain from lending to the self-employed . The effort required to evaluate creditworthiness for the self-employed is often considered too high. This applies in particular if the requested loan volume is relatively low (up to 100,000 euros). In addition to the higher outlay, the higher credit default risk for self-employed and freelancers in comparison to the employee loan also has an impact.
We recommend that self-employed persons deal in advance with the conditions for a loan before an application is submitted. This frees the self-employed much time and false hopes.
Collateral crucial for lending!
If the self-employed can provide additional collateral such as real estate, life insurance and savings deposits, the chances of a loan increase considerably.
Additional safety: Solvent guarantor reduces the risk of failure!
If a financially strong guarantor strengthens the applicant’s back, this is always considered by the bank as positive. If the actual borrower fails, for example, through insolvency, the guarantor has to pay for the credit obligations of the borrower. The mention of a guarantor also results in the bank granting more favorable credit terms (eg lower interest rates).
Credit default insurance as collateral!
If the self-employed person can not provide any collateral, it is often required to take out loan loss insurance. This will then come in if the loan for the self-employed can not be repaid.
Use as additional security!
The purpose is also important in the granting of credit. For example, when buying vehicles or real estate, they serve as collateral for the bank. If the loan commitments are not met, the bank could sell the finance item in an emergency.
95% of all self-employed, tradespeople and freelancers do not know that …
- … the financing form company leasing is a suitable alternative to the normal company loan, if no equity is present or otherwise bound or if the credit lines are not to be charged further.
- … with the financial portal Inancingent the credit chances increase at least 100% compared to the house bank and can save over 30% interest? More: SME tip: 100% higher credit chances and 30% interest savings!
- … Factoring as a credit alternative for medium-sized companies is not only an interesting solution in times of crisis!
- … Inancingent can also be used to optimize commercial real estate financing .
- … the Financial Technologies financinga makes short-term bridging loans up to € 100,000 possible within a few hours and thus within one working day!
- … a financially strong guarantor definitely increases your credit chances?
- … the purpose of the loan may also be of importance in the credit decision of the bank.
Everything else about loans for the self-employed, freelancers, founders, entrepreneurs, tradesmen and small companies can be found in our practice guide loans for small businesses and the self-employed .