Basically, the loan for self-employed is an installment loan, it is repaid monthly with repayment and interest at a constant rate. The essential distinction lies in the fact that higher entry requirements must be met. This applies above all to the minimum income, any guarantees or guarantees and proof of income. Instead of proving the last three months by bank statements and pay statements, BWA, income tax assessment notices, income statements or income-surplus accounts are required. This usually results in lower credit sums and shorter terms in practice, as banks value the default risk higher.
Is it less easy for self-employed people to receive favorable credit terms due to their irregular income?
The fact is that only selected banks are open to the self-employed and freelancers at all and offer them private loans without a purpose. On the one hand, the barriers to a minimum income, collateral and the like are higher. On the other hand, the credit check also takes more time, as much more documents must be reviewed and evaluated. If you can provide a guarantor or have attachable collateral, this disadvantage can be partially offset. The fact remains, however, that self-employed people always have to reckon with certain interest premiums and these are due even when the income is far above average.
Are there alternatives to the self-employed loan if I own real estate?
In this case, there is an alternative in the form of the so-called modernization loan. Banks hereby finance repairs or renovations to their own home. As proof, they require a land register excerpt or tax declarations. And although such a loan is earmarked for just such a “modernization”, you do not have to provide any further proof of the use of the money. At the same time, you receive preferential conditions and can, for example, finance business acquisitions. It is also irrelevant that the property is still burdened by a mortgage at the same time or you still finance them. Only ownership alone is sufficient as a prerequisite for the modernization loan.
Is there a loan for self-employed without inquiry at the SCHUFA?
Basically, loans are granted without SCHUFA, regardless of the occupational group. The requirements for proof of income and possible collateral are practically identical because only income and credit rating are assessed independently of scoring values. If your file contains “hard” negative features, such as enforcement measures or affidavits, you will not be able to obtain funding in a “normal” way.
The self-employed are at a disadvantage because of the lack of reliable income. A loan without SCHUFA they get at most from private. If their overall economic situation is good, they can hope for a loan in spite of SCHUFA, in which the current circumstances are rated higher than the credit history.
Do I have to prove my income in such detail? Are not collateral sufficient?
A loan for self-employed persons without proof of income is excluded. Banks assess both the income situation and the recoverable collateral that may need to be pledged. For this, they are legally required. It is therefore not possible, even with the appropriate credit rating, to apply for a loan solely on the basis of extensive collateral.
Is the loan tied to a specific purpose?
There are no restrictions on use for top 3 personal loans for bad credit with monthly payments. They can use the money for both professional and private purposes to compensate for defaults.
Are there any processing fees or other costs?
For some time, processing fees are no longer common and also prohibited by the highest court. Very well, but additional costs may apply. For example, for a loan loss insurance, which requires a bank of you before granting credit. In addition, guarantees can increase the effective cost of borrowing.
How does the loan comparison at FinanceScout24 affect my SCHUFA?
Basically, you have to differentiate between two types of SCHUFA queries for loans. In the first case, the feature “request credit terms” is stored, it is completely neutral and is stored for only ten days. That’s what happens when you compare FinanceScout24 and a loan request. If you subsequently receive an offer and accept it, so the credit comes off, the feature “request credit” is saved. Only then does the loan also affect your SCHUFA score.
My self-employment does not exist for three years. Can I still get a loan as a self-employed person?
Most banks require a self-employment of at least two or three years. Accordingly, you are demanding income tax assessments and financial statements for the past two years and a viable business concept. As a start-up entrepreneur, you can, for example, benefit from state promotional banks or microcredit institutions. These grant smaller amounts of credit partly without guarantees and guarantees. Alternatively, there is still the variant on the second borrower but must meet all other requirements.
From when do I apply at all as a self-employed person or freelancer?
At first, banks differentiate between traders, ie the self-employed and the freelancer. You are considered to be a trader if you have a trade license or are registered in the commercial register as a businessman. As a freelancer, you belong to the “liberal professions”, for example as a doctor, lawyer or tax consultant. What exactly is meant by this is regulated in § 18 EStG and § 1 PartGG? You must not depend on a single customer (at least three clients), the turnover of a single customer may not exceed 5/6 of your total sales. If the customer is a single client, the legislature speaks of “false self-employment”.
Which documents do I have to submit?
Submitted are various documents that represent a repayment guarantee for the lender. The lenders have different requirements that must be met in the case of a loan for the self-employed. The documents are usually a business evaluation, a revenue and surplus account or a profit and loss account, the last three bank statements as proof of regular income and possibly an income tax return. In addition, there must be no negative SCHUFA entry. If you are already self-employed, you must prove that you have been self-employed for two years.
Are interest rates and fees for self-employed persons higher?
How interest and processing fees will vary depends on the particular lender. Some providers drastically increase the self-employed processing fees, others make no distinction between employees and the self-employed, as long as repayment seems safe. Therefore, make sure to inquire before signing a contract hastily.
As a self-employed person, do I have other rules on installment payments?
To make it easier for you, even as a self-employed person, to better plan the payment, the monthly amount of the installment and the term of the loan are contractually agreed. This is important for both sides. The self-employed knows exactly how much money he owes the lender monthly. No more and no less.
What happens if I can not pay the installments anymore?
The risk of default is higher for self-employed than for employees, you have to expect. Your installment is contracted, so you have to pay the monthly sum. For example, if payments from your customers are still pending and you can not fully pay the monthly installment, talk to your lender. Lower rates may be agreed. Even if you have received orders for the coming month but currently cannot raise the money for the installments you only have to go to the bank: If you have paid properly before your installments may be a one-time suspension of the rate in question. Or you can find someone to vouch for you until you can pay yourself again. If there is no money left, insolvency has to be registered.
When do I need credit insurance?
A credit insurance is required if you want to protect yourself from any eventuality that could lead to a default of the loan payment. Especially for self-employed credit insurance is interesting even if it means an additional burden. The insurance protects against occupational disability, unemployment, and death. Inquire before and decide for yourself. Do not get credit insurance from your lender if you do not want them.
When is it credit fraud?
It is a credit fraud when there is an act of deception. This has happened when incorrect or incomplete information has been provided in the presentation of economic circumstances. According to § 265b of the Criminal Code, a deception is punishable and is sentenced to a fine or imprisonment for three years. It is economic crime. Getting a loan for the self-employed is a difficult process. But even if it does help you get a loan, you should never file false or modified records. They make themselves punishable!