Self-employed and freelancers often need a loan for private use, regardless of a business loan. While separate rules apply to business loans, which are often working capital loans, a private loan for the self-employed can often only be obtained under difficult conditions.
Since the self-employed usually do not have a secure, continuous income, many banks and savings banks are reluctant to lend. However, some banks are now offering special offers for the self-employed. In addition, some credit intermediaries have specialized in this target group and have connections to domestic and foreign credit institutions that also provide loans to self-employed people. In addition, there is also the option of obtaining a loan from a private lender through a placement company.
Creditworthiness – basic requirements for every loan
Anyone who needs a payday loan as a self-employed person is often faced with higher creditworthiness requirements than civil servants or industrial workers with an unsigned employment relationship. Banks and savings banks require detailed evidence of the economic situation of the company from which the self-employed draw their current income. In addition to the current income tax return, most of the business evaluations – often for the past six months – must be submitted.
In addition, balance sheets or income surplus calculations of the past few years are usually required. A self-employed person often only receives a payday loan if his company has been established for two to three years. In addition, payday loans are often made dependent on the provision of collateral. The assignment of claims from existing life or pension insurance or even the conclusion of an additional residual debt insurance is often required.
Payday loan – comparison of conditions required
Many banks and savings banks limit the amount of the loan for a payday loan to the self-employed. Loans of more than $ 50,000 are rarely granted without collateral. The design of the conditions is often dependent on creditworthiness. Usually a Credit Bureau request is made and the interest rate is only fixed after the credit rating has been obtained. Only a few financial institutions are prepared to grant a loan to the self-employed on the same terms as an official or employee.
A private loan to a self-employed person is usually granted as an installment loan with a fixed interest rate or variable interest rate. There is also the option of receiving a credit line that can be drawn up to an agreed upper limit if necessary. As the loan offers vary widely, a comparison of conditions is essential.