Credit for Self Employed Comparison

Loan for the self-employed, compared to the personal loan, the restrictions of the free choice of provider become apparent. Many freelancers, despite a good income and a clean Credit bureau, only reap credit rejections.

Loan for the self-employed compared to the past

Loan for the self-employed compared to the past

Getting a loan as a self-employed person or as a freelancer has always been a bit more difficult. Numerous documents had to be brought to the bank before 2000. In the past, the auditor or at least the tax advisor on the loan discussion was just as common as it is today. If he wanted to take out a loan, a self-employed person was always liable privately with house and farm. Only with large companies did the owners have a chance to limit their liability.

Nonetheless, the credit for the self-employed is nothing like it used to be, because politics interfered. The concept of the single currency should be implemented with all vigor and perhaps also against every mind. Suddenly, every investment outside of Germany was a “gold mine” for the big banks. Politicians deregulated the financial markets and then tried to limit mistakes made again.

Since Basel 2, before the USD crisis, credit institutions have started to exclude freelancers and the self-employed across the board.

Situation for the self-employed in 2013

Situation for the self-employed in 2013

A lot has changed between 2000 and 2013. Agenda 2010 ensured that around 800,000 freelancers and small self-employed people in Germany became almost 5 million. This puts the “performance” of lower unemployment into perspective, it has become independent. Instead of fewer self-employed people who could live well from their freely chosen bread-and-butter jobs, there are now many. Unfortunately, also many who can barely make ends meet.

These people only get credit in exceptional cases. Many banks no longer want to hear about speculative transactions. They have had their experience in investment banking. The core business should only be supposedly secure lending. This development is again supported by politics. Since the USD crisis started in 2008, everything that needs to be regulated has been regulated.

Only the real hot spots, such as Target2 and government bonds, were excluded. The borrowers were again the victims, especially the self-employed and freelancers. They have neither a “safe” income nor an undistributed market in which good future prospects are revealed. Even those who have made it and are now making good money hardly get any credit opportunities.

Loan opportunities for freelancers and the self-employed

Loan opportunities for freelancers and the self-employed

A loan for the self-employed is only possible with very few credit providers compared to a personal loan. The savings banks and Best bank remain nationwide, just like a credit option in the distant past. Only the tax advisor is now called auditor or business consultant. Fine bank and Agree bank with fair lending rates can be considered online as commercial credit providers.

The look at the approval chances speaks for skimming off the icing on the cake among freelancers. Doctors and lawyers are also freelancers. After a certain start-up phase, you can assume a very constant income, similar to an employee.

Take instant credit payout instantly.

 

A flash credit with immediate payment is not as rare as some might think. An unexpected invoice, repair or other purchase is not always planned. If the money is then not available, this loan is often used.

Choose the right loan

Choose the right loan

With the many offers, it is not easy to find the right lightning loan with payment immediately. There are always a number of things to consider. First, you should think about how high the loan amount should be. Only then can a correct provider be found who has fair conditions. In addition, getting a loan is not easy for everyone. Some do not have as good a credit rating as others, so that either a loan amount cannot be taken up as high or not at all.

On the one hand there is the mini loan. This is suitable for small purchases or invoices. The credit amount for this lightning credit with payment is immediately between 300 dollars and 5,000 dollars. It is often enough to go to your own bank to apply for this loan. Then there are also the loans with a higher loan amount.

If, for example, a new car is to be bought, it may well be that several thousand dollars are needed. Here the house bank, but also the bank of the car dealership can grant a loan. The advantage at the bank of the car dealership is that a contract is signed on the spot. The sum is then transferred directly to the dealership and the customer has to pay the monthly installments.

Requirements for the loan

Requirements for the loan

In order to receive the instant credit with payment immediately, the applicant must meet the requirements at each bank. These are set because the bank does not want to take any risks. The bank earns money by granting loans and is guaranteed to get it back. As soon as the bank has to fear that the repayment of the loan amount is at risk, no loan will be granted.

The applicant for the instant credit with immediate payment must be of legal age. In addition, he must not have too many negative entries in the Credit Bureau. If the customer is noticed negatively, the bank will generally reject a loan application. The rejection is noted again in the Credit Bureau. Refused loans can be included in the entries, but also existing loans with installment payments or attachments.

The applicant must use payslips to prove that he has a regular income. This income must be attachable. The reason is that the bank wants to be sure that it can seize wages in an emergency if the borrower does not pay the installments. The wages must come from permanent employment. This means that mini-jobbers or trainees are less likely to get the chance to get the loan.

Disbursement and repayment

Disbursement and repayment

As soon as the instant credit with payment has been approved, the loan amount is either paid out immediately or transferred to the account. If the sum is only a few hundred dollars, there is always the possibility to have it paid out immediately. When repaying, an amount is agreed with the bank, which must be paid in monthly installments.

A collection procedure is often used, so that the customer does not have to do anything else. He should only make sure that the account is sufficiently covered every month so that there are no arrears in the payment. If this happens, a garnishment of wages can be issued quickly. If you know that your account will not be covered, you should rather speak to the bank and ask for the rates to be suspended.