.The private loan is a good financing option for the self-employed. This avoids a complicated licensing procedure at the banks. Most local credit institutions are not geared towards commercial lending.
Personal loan for the self-employed – that’s what happens
Personal loans have long been an integral part of the modern credit market. The private loan is a good way for the self-employed to acquire urgently needed capital. Increasingly, credit requests can no longer be realized through the house bank. The credit procedures and requirements of ordinary institutions are not designed for corporate loans. The clerks find it difficult to check the submitted documents. They lack the guaranteed work income as the basis for credit protection.
Self-employment earnings are undervalued or ignored as unsafe. The bottom line after the preliminary credit consultation is high risk interest and the desire for credit protection that cannot be provided. The entrepreneur, like many other self-employed, is cut off from the “normal” capital market. The options are the change of provider, a foreign loan and the personal loan.
Expand easily with a personal loan – how it works
Contact with private investors can be easily established via the Internet. Although various portals offer the service, it is the market leaders that automatically appear at the top of every search engine. With one of the two major providers, the credit opportunities can already be realistically assessed through the preliminary credit check. A process specially tailored to self-employment checks the credit request.
The credit request is only published after this check. The other portal is currently not using this formality. The private loan for the self-employed is immediately activated on the platform.
The procedure is reminiscent of an internet auction. Bidders look at the loan request and decide whether they want to invest. The bids are collected. If enough bids have been received and accepted, the loan is ready for allocation. A bank that works in the background takes care of the rest of the process. It collects the money from the investors and pays it out in one sum. The repayment is made in the opposite way.
No earmarking for personal loans
If you are looking for a loan in the context of self-employment, you do not always have the company investment in mind. Consumption requests, for example a new TV set or a winter garden, are normal financing requests. Of course, they can also be realized via one of the platforms for personal loans.
The credit from private for self-employed is not earmarked. However, the set loan request should not give the appearance of a dedicated business investment. Personal loan is a trust loan. This trust should not be disappointed by half-truths or even incorrect information when formulating the credit request.