Banks often advertise low interest rates, quick loan approval and simple application routes. But these promises often only apply to the creditworthy borrowers who meet the best requirements. Self-employed and freelancers find it difficult to get credit from a bank. We have briefly summarized what really matters to banks and what you can do to increase your chances of getting a loan.
- Unlike employees or civil servants, the self-employed and freelancers do not have a fixed monthly salary. The monthly income fluctuates strongly. This is why banks place even more value on sufficient collateral for the self-employed. The chances of getting a loan as a self-employed increase if you can name a guarantor or other borrowers with good credit ratings. In addition, additional collateral can also have a positive effect on the interest rate
- So that the bank can get an idea of the financial situation of a self-employed person, income tax assessments must be submitted as receipts. But often these are not enough. Since the self-employed and freelancers cannot submit wage and salary slips as proof of income, business evaluations serve as proof of income and are part of a credit check. This includes, for example, the income surplus calculation or the quarterly BWA, the business analysis. If a tax advisor confirms that it is correct, this increases the credibility and reliability of such income statements.
- If you are starting a business or your business has not existed for 2 years, banks usually want to see a business plan. This provides information about how promising your business idea is and what the monthly income will look like. With a plausible business plan, you can significantly increase your chance of a loan approval.
- Another factor that will increase your chances of getting a self employed loan is your place of business. Most banks require a place of business in Germany. For the most part, this has a legal background.
We know from many years of experience that applying for a loan to a bank involves a lot of bureaucracy. As a self-employed person or freelancer, you have to have a lot of patience and perseverance to get a loan approval from the bank. That is why we have made it our task to support self-employed and freelancers and to break old, well-established processes. At Best Credit , we offer self-employed and freelancers credit programs that differ from competitive offers in a significantly faster credit check and unbureaucratic processing. We only ask for the most important documents and you will receive a credit decision within a very short time. How is that possible? We have succeeded in gaining a number of cooperation partners who have developed new solution concepts especially for commercial financing and are continuously expanding them. For example, financing models such as crowdlending and crowdfunding have established themselves on the German market and have now become an indispensable financing alternative for the self-employed, but also for small firms and companies.