Self-employed credit – Not every lender grants an installment loan to freelancers

This is due to the changing income of borrowers and the higher risk of default. As a result, self-employed people find very few loan offers and their loan application is rejected more often than with an employee. The credit broker Best Bank specializes in loans without Credit Bureau, which are also given to freelancers. We process each loan request individually and ensure that you, as an independent borrower, find the right loan offer!

Best Bank arranges installment loans for the self-employed

Best Bank arranges installment loans for the self-employed

Free credit request With a net loan of $ 4,000 and a loan of 72 months, 2/3 of the new customers receive in advance. an eff. Interest rate pa of 7.9% or less (born debit rate 6.45% pa) Important: In your own interest, please do not make any further credit inquiries, as multiple inquiries (also from other providers) can lead to irritation and the blocking periods can be imposed by the banks in question.

Credit for self-employed with Best Bank

As a freelancer, you can take out two types of loans:

  1. Home loan
  2. Business credit

The biggest difference between the two types of credit is the purpose. However, the maximum loan amounts and the annual interest rate can also be different for private and business installment loans.

Home loan

Even if the self-employed spend a large part of the day at work, there are private wishes and dreams. Refurbish the apartment, build or buy your own house for yourself and the family, have a nice vacation or a new car for private use – the wishes of freelancers are no different from those of an employee.

Often, however, the income from self-employment is not as high or the largest part of the profit is initially invested in the business. Then there is no money to fulfill private wishes. In this case, a private installment loan is an option. Some financiers also offer construction finance for the self-employed.

Business credit

With a commercial loan, you can choose between an investment loan and a working capital loan. With an investment loan, you buy capital goods for your company. These goods include:

  • Company car
  • machinery
  • Tools and tools
  • Computer and printer
  • Office furniture and shop equipment
  • Real estate and land

A working capital loan is used to buy goods and raw materials. You can also pay your bills on time and deduct a discount. You also use the credit to correct irregularities in the business account if your customers pay later.

Loan collateral

Loan collateral

With regard to loans for the self-employed, it is striking that there are so-called secured and unsecured loans. In the case of secured loans, the financed goods also represent the loan security. In the case of a car loan, the vehicle is transferred to the lender as security. In the case of construction financing, the financed property represents security. An entry is made in the land register. In the case of an investment loan, the financed machinery and equipment are also transferred to the bank as collateral. If you don’t repay the loan in accordance with the contract, the lender can use the collateral to get his money back.

Credit for freelancers at Best Bank

Credit for freelancers at Best Bank

If you ask a self-employed person at your house bank about loan offers, you may get a rejection. Not every credit institution offers business loans. With Best Bank, freelancers and the self-employed can make non-binding loan inquiries. If you are unsure of what purpose you want the lender to use, just select free use in the loan application. So you can also have money paid for starting your own business if your equity capital is insufficient.

After you send the credit request online to us, your personal advisor will look at the application. He asks various lenders whether they are willing to lend you the loan amount you need and what interest rate they charge. After 20 – 30 minutes you will receive the first loan offers from us. Since we only ask the lenders about the loan terms, the request does not affect your Credit Bureau scoring.

The credit application from Best Bank is quickly filled out

The credit application from Best Bank is quickly filled out

In just three steps you fill out the credit application from Best Bank. In the first step, we would like to know the required loan amount and what rate you can pay each month. Then you enter your personal data and tell us under which number you can be reached and when.

You can also enter the data of a second borrower here. Similar to a guarantee, the second applicant also guarantees the repayment of the loan, thereby reducing the risk of default. The credit institutions reward the lower risk with a better interest rate for the installment loan.

In the second step we would like to know from you how high your rent is, whether you are married and have children and what your tax bracket is.

In the third step, you enter your monthly net income and the income from all secondary activities. In the professional group, you choose independently and indicate what position you have in your company:

This is what our conditions look like

This is what our conditions look like

We arrange installment loans without Credit Bureau for self-employed people between 4,000.00 USD and 60,000.00 USD. You can pay the loan installment on either the 1st or the 15th of the month. Repayment begins four weeks after the loan amount has been paid out. You have 48 to 120 months for the repayment. The level of the interest rate depends on various factors such as loan amount, term and number of borrowers. The credit decision is made based on your personal situation and is independent of Credit Bureau information.

What is a self-employed loan?

What is a self-employed loan?

Freelancers and self-employed people need money to set up a business or to expand their business. At the same time, self-employment is always associated with a financial risk. Therefore, a loan for the self-employed is an installment loan with a higher default risk for the lender.

Start-ups in particular find that often neither the house banks nor other credit institutions offer a loan for them. This is because startups cannot yet provide proof of income and the lending bank cannot ensure that the loan is repaid properly. If there is a loan offer, the lenders offset the increased default risk by higher interest rates for the self-employed, freelancers and start-ups.

Why self-employed are so hard to get a loan

Why self-employed are so hard to get a loan

German credit institutions make the payment of a loan amount to the self-employed dependent on numerous factors. Potential borrowers are asked many questions before lending and have to provide a variety of documents. As a rule, the business activity must have existed for at least three years.

While employees can provide proof of income with regular salary receipts, the self-employed have irregular income. Instead of a pay slip, self-employed applicants submit profit and loss statements (P&L) or business evaluations (BWA) from their tax advisor. These show that the income of a freelancer can be irregularly high.

In addition, lenders have more work with a self-employed loan. It is more difficult for credit institutions to assess the creditworthiness of the borrower and to determine the terms of the installment loan. Lenders often require special collateral, such as a guarantee or the transfer of life insurance.

If you apply for a loan at Best Bank as a self-employed person, you will receive an individual offer after a short time. We only need a little information about you and your company to make a loan decision!

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