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Former self-employed: problems borrowing

Having to give up self-employment is not easy. In Germany, failure is still seen as a blemish and a big defeat. It stands over a failed one like a sword of Damocles and does not necessarily make the actual situation any easier. Because many former self-employed also have financial problems. This is not unusual if you want to take out a loan later.

For a number of lenders, it does not matter if a former entrepreneur has long had a permanent job and a good salary, but the loan is still denied. But why is that? This article will take a look at this.

Why do former self-employed people often get no credit?

Why do former self-employed people often get no credit?

In principle, a distinction must be made in the case of failed self-employment between the types of company.

Anyone who had a limited liability company or was liable only to the amount of the deposit with the private assets, often has fewer problems.

However, those who have a form of enterprise in which the private assets also counted, can actually have serious financial difficulties in the event of failure. And that shows in the private person of the entrepreneur:

Corporate liabilities

Often, a self-employed person gives up because he can no longer keep the company upright. In this situation, liabilities come into existence for which the self-employed must be responsible. Creditors can apply for the dunning procedure against him and of course enforce.


Many companies lease company vehicles or even production plants and other machines. If the company goes bad, these costs are often no longer borne. Again it comes to the dunning and enforcement proceedings.


Very few companies come out in the early days without loans or loans. If the business is running well, it will be repaid. Only it was not good enough for a failed entrepreneur. The loan and loan agreements are terminated, the sum demanded directly and of course can not be paid.

All of these examples lead to claims that can sometimes end up in a negative credit entry with credit bureaus such as the credit bureau. The problem is that self-employed lenders are generally classified as a risk group and often have a lower score than employees. If negative entries are added, the credit score drops massively. In addition:


Entries with higher liabilities will not be deleted until three years after the final settlement of the claim. An entrepreneur can thus have his finances back under control and be financially good, but the credit report reports problems.

Not performed deletions

Not infrequently, entries are accidentally deleted. It is therefore advisable to obtain a self- assessment once a year to check the entries.

When borrowing, banks automatically check the creditworthiness of a customer. If this results in a bad score, the loan will be rejected.

3 alternative options

3 alternative options

Does a failed self-employed person really have no chance to take out a loan now? Of course, this is a real problem for people who have found a good permanent position and have reduced their entrepreneurial liabilities. You may now wait until all entries have been deleted, but that also means that no car or purchase can be made in installments for at least three years. Fortunately, there are solutions:

1st partner

If the financial conditions for paying off the loan are met, of course, the partner can take out a loan. This is possible with spouses, but also with other communities.

What is important, however, is that an additional contract should be concluded between the partners governing credit settlement within the partnership.

2. Personal loans

Smaller loans can often be included in the relationship. But even larger sums can be borrowed from private individuals. There are special portals on the Internet, where private individuals make funds available through a private loan. Some portals set specific rules, others leave the parties to find a solution.

The important thing is that even through this loan, a firm contract is concluded, which lists the amount of the loan, repayment terms and interest. The portal usually has to pay a commission, which is based on the loan amount.

3. credit bureau loans

Another possibility are loans that are taken without or despite credit rating at the credit bureau. These are also available in a serious form online. The interest costs are a little higher than with conventional loans, moreover, the credit sums are more limited or are based on income.

To take out such a loan, it is important to be able to explain the financial situation. Payslips, any wealth or property such as real estate or shares must be shown. Some providers expect a security deposit in the form of an assignment of the attachable part of the wage and salary.

Basically, it is of course the case that the amount of the desired loan decides even for temporarily failed self-employed. If you are looking for a small loan and do not take more than 2,500.00 euros, you often have a chance at the house bank. At least if the bank has no liabilities open, the accounts are in the plus and the bank can see that for a long time monthly a firm receipt of money comes. Even small and instant loans are easily possible in these cases. Anyone who owns a home also has much less difficulty obtaining a loan. Nevertheless:


Anyone who failed financially in self-employment should take care not to go back into debt. Otherwise only new credit entries will be added.


Those who are still deeply indebted should be very careful when taking on another loan. If he can not repay this, this could be considered a fraud, because the financial situation was known.


Anyone who is in private bankruptcy may not borrow money.

Of course, it is different if, before the bankruptcy proceedings, a loan is taken up at the level that allows it to close a settlement with the creditors and avert insolvency. However, this should only be discussed with a lawyer.

Conclusion: solutions are available

Conclusion: solutions are available

Even a former entrepreneur does not have to give up a loan permanently. If there are regular receipts of sufficient amount, if the previous debts have been repaid or are only a manageable sum, the borrowing is even relatively easy.