Those who are self-employed have to accept a number of disadvantages as well as many advantages. Especially when it comes to applying for credit, banks are usually a bit reluctant. Many credit institutions only offer their loans to private employees. However, there are definitely ways to get an installment loan for the self-employed.
Requirements for an installment loan for the self-employed
As with employees, the creditworthiness of self-employed and freelancers is a crucial point when it comes to lending. However, the credit check for self-employed is much more complex than for salaried employees. This is one of the reasons why some banks are reluctant to lend to the self-employed. Another reason is that the self-employed do not have a regular income.
Since the self-employed do not have proof of salary, other documents are required for the credit check. In addition to the last two income tax statements, most banks also require a current business analysis and a profit and loss account. The bank uses these documents to determine whether there is enough income to pay the monthly installments. In addition, the Credit Bureau data is also queried for self-employed persons. In order to get an installment loan for the self-employed, there must be no negative entries here.
Difficulties with installment credit for self-employed people under two years of age
It is particularly difficult to get a loan right after starting your own business. At most credit institutions, installment loans are only granted to self-employed people if the borrower has been self-employed for at least two years. There is a lower risk of default here than with newly founded companies, which usually generate less sales.
However, new founders have the option to obtain an installment loan for self-employed people via so-called start-up loans. These are also issued by the state credit institution for reconstruction. In addition to low interest rates, the repayment modalities are very moderate. The term can be up to 10 years and the loan can even be made repayment-free during the first two years. A loan can be applied for from almost all banks and savings banks.
Apply for a personal installment loan for the self-employed
In recent years, loans from private lenders have become increasingly popular in the country. In the United States, personal loans have long been one of the best known ways to take out a loan. The self-employed, in particular, benefit from the fact that, unlike a bank, lending is a lot less bureaucratic. After successful registration, the loan project will be put online.
The borrower can specify the amount he needs and the desired interest rate. If there are enough donors for the project, the loan amount will be paid out within 48 hours. Loan amounts of up to 50,000 USD are possible. The borrower can choose between 36 and 60 months. A fee of 2.5 percent of the loan amount is charged for the placement if a term of 36 months is selected. with a term of 60 months, the placement fee is 3.0 percent.
However, there are certain prerequisites for the self-employed even with personal loans. On the one hand, these require a Credit Bureau without negative entries. At least a Credit Bureau credit rating of H is required for registration. Furthermore, independence must have existed for at least 2 years and the annual turnover must be at least 18,000 USD.