Self-employed and freelancers have a hard time finding a loan. We have put together tips how it works anyway.
Credit marketplaces as an alternative?
If borrowing from a bank is out of the question, there are credit marketplaces on the Internet: Here, borrowers receive money from a private investor. The marketplaces act as mediators and take care of the formalities.
The platforms offer the advantage that even self-employed and freelancers receive money that would otherwise not get credit from the bank.
For customers who, for example, fall through the examination grid of banks due to their relatively recent independence, credit marketplaces such as trucredit offer the opportunity to lend money on fair terms.
This does not mean that customers with a negative rating or bad credit ratings can simply take out a loan here. Here, too, a detailed examination of the borrower.
Which bank is the right one?
Banks in the EU are subject to certain capital requirements. Here, minimum requirements for the risk management of credit institutions are regulated. These legal requirements often lead to restrictive lending behavior.
When choosing the right bank, the first question is whether the loan is requested for business or private purposes. Many banks have special start-up programs in their portfolio. In many cases, setting up a business can also be financed through a state-subsidized loan.
Anyone who wants to apply for a business loan as a freelancer or self-employed person should be well prepared. Because the more documents are submitted, the more accurate the picture of the overall economic situation, the Bank can do.
In order to be able to assess the risk of default, banks require these professional groups to submit extensive documents. The exam depends on the amount of the loan, the higher it is, the more it will be checked. In addition to the latest income tax assessments, current business evaluations and the latest profit and loss statements should be presented, if available.
Often the banks want to inspect the private bank statements and expect to submit a statement of assets. When completing the self-assessment, applicants should proceed with care. Some banks require self-employment for at least two years, sometimes three years.