Compared to permanent employees, civil servants or even trainees, the self-employed do not have a regular, monthly recurring income. Their financial situation or credit rating depends on their workforce on the one hand and on the order situation on the other. So when it comes to loans for the self-employed, a credit institution will check very carefully whether it is approved. However, a loan for the self-employed is not an impossibility.

Strict guidelines for the self-employed

Strict guidelines for the self-employed

Despite the “vague” financial situation of self-employed people, many banks offer corresponding financing models. However, the requirements for obtaining such a loan are much stricter. In order to receive a loan for self-employed or freelancers, the applicant must prove that he can achieve a certain income per month. However, since income is usually subject to fluctuation, the bank uses an average value to determine its creditworthiness.

Depending on the individual situation, this can have a positive or negative impact on the loan application. The evidence of the income earned is not based on the submission of income evidence, but on a business evaluation, which either the self-employed person or the tax advisor creates for this purpose. The duration of independence is also decisive for the desired loan. The longer it has existed, the better the chances of a positive commitment. If all else fails to this point, collateral can be provided that almost completely covers the required loan amount.

The bank’s financial request

The bank

By granting a loan, the bank always risks losing capital. The bank considers a loan for the self-employed to be riskier due to fluctuating income. That is why the bank has a number of security mechanisms in place that are designed to secure this as much as possible.

These mechanisms are expressed by the applicant in the form of the requirements described above. Banks still want to do business. For example, if the potential borrower has an average to poor credit rating, the bank can adjust the interest rate upwards to the detriment of the applicant. A guarantee is also conceivable so that the paid-out capital is secured by third parties.

Plan conscientiously

Plan conscientiously

If you want to apply for a loan for the self-employed as a self-employed person or freelancer, you should first analyze your financial situation. Attachments to well-managed bookkeeping make it easy to identify trends that can contribute to decision-making. Basically, taking out a loan in this context is to be seen as an investment that should offer added value. If this goal is difficult to achieve, it is advisable to wait until a more favorable time to start financing.