The fact is already well known: freelancers usually have a hard time looking for a loan from a bank. The lending to freelancers is usually much more difficult than that of other professions. Almost all banks and lending institutions find it difficult to lend these people credit on favorable terms. Even if the freelancer has been earning money very successfully for a long time, acquiring a reputable loan is usually very complicated for him.
Almost all banks and lending institutions are of the opinion that a permanent and long-term employment relationship is safer than any commercial, independent and freelance work. Yet, as good as anyone knows, even today, a steady income that has existed for many years does not protect one hundred percent from sudden unemployment.
But a guarantee that the repayment of the loan works fine, there is simply not. No matter what profession it is with the borrowers.
The first way should always be the house bank:
Fortunately, there are still ways and means that freelancers can get a loan. In most cases you get as a freelancer from the house bank, although no credit, but important information for further credit search. Most chances are very bad at the own house bank.
Nevertheless, the house bank should always be the first port of call if you want to apply for a loan. The consultations held there promise a lot of tips for the rest of the course and still to get a loan.
But even before you make your way to his house bank, you should already have dealt extensively with the topic of borrowing at home. This makes an impression on the banks and so you can get to a loan faster than you might think. Already at the first conversation with the bank, one should have all his numbers in mind.
You already know exactly what you want to finance with the loan and has already made about the monthly rate so his thoughts. With this basic knowledge, one can certainly expect more support from his bank. At the first consultation you should also know exactly how much money you spent for what purpose in the past month. Anyone who has all the important documents at the first meeting (tax assessment, bank statement with all monthly fees) is also clearly in the advantage.
What to look for in the loans for freelancers?
Since you can get a lot of information from the house bank, but probably no credit, you should look around as a freelancer, even before the start of the request for a loan to several reputable banks. There are many institutes that specialize in providing loans to freelancers and the self-employed. Compare conditions and then decide on the best provider.
Even if the way for a loan is usually longer for freelancers than for others, everyone will eventually get a loan.
Loans for freelancers are relatively hard to obtain compared to loans for employees and civil servants. Even with a simple installment loan, the bank refuses to finance self-employed and freelancers.
Freelancers have a hard time, especially since they are the ones who have to bridge the temporary funding gaps. Every freelancer needs to invest. Often it is about smaller sums for the office equipment, a Mietaution or the new computer. Customer arrears also create problems for freelancers, which means that liquidity bottlenecks can be bridged from time to time.
The credit rating of the freelancer
A freelancer works differently than an employee on his own account. Anyone who works as a freelancer, unlike a worker, can not prove regular salary. The monthly income is often fluctuating and difficult to calculate. A changing order situation or market risks make self-employed persons a risk business for credit institutions.
Banks only grant loans to persons who are able to repay the borrowed amount within the agreed time limit. The creditworthiness of the borrower is therefore very important for the bank and one of the reasons why freelancers often have difficulty getting a loan approved. With bad credit standing freelancers therefore have little chance of getting a loan from a reputable bank.
For an employee, the credit check is based on income statements such as the latest pay slips. The loan is sometimes secured by a salary assignment.
If a self-employed person or a freelancer applies for a loan, the verification of his creditworthiness is considerably more complex, as he usually has no consistent, secure monthly income. Therefore, more comprehensive documents must be submitted and usually also much more collateral must be provided.
The revenue surplus bill
In most cases, banks require evidence of regular surpluses that will take several years. Submit to the bank are usually a revenue / surplus or a profit and loss account and the last income tax notices. Under certain circumstances, the bank also requires additional evidence to get a closer look at the economic situation of the freelancer. These can be a BWA, that is the business evaluation, or proof of the beginning of self-employment. Often physicians often require proof of practice registration or, for lawyers, proof of chamber membership.
A negative private credit entry often automatically leads to a rejection of the loan application by freelancers. Here freelancers can rely on loans from private individuals. Various providers on the Internet mediate between freelancers and private lenders. In addition, crowdfunding is being used more and more frequently to finance the business expenses of self-employment.
5 Tips on Credit for Freelancers
What requirements do freelancers have to fulfill?
If you want to apply for a loan as a freelancer, you must bring certain requirements. As a rule, banks are demanding that they have been working as freelancers for more than a year. In addition to obvious criteria such as a positive private credit information and a residence in Germany, there should be no further debts. In addition, one should also be able to offer certain security.
Probably the most important condition for a positive credit approval is a sufficiently high income. If income has been rising steadily in recent years, or if incomes cover the running cost of living easily, then the bank can hope for continuity.
Alternatively, credit institutions also accept other collateral like something a mortgage.
Which types of credit are available?
Ordinary installment loans are also intended for freelancers for private purchases and are therefore not suitable for use in the context of self-employment. Restrictions vary, however, from bank to bank.
For the bridging of short-term liquidity bottlenecks of a freelancer are overdraft loans. These are usually call-off loans, ie a line of credit which the bank provides to freelancers in case of cases.
The current account credit is comparable to the private employee disposition. The advantage of a credit that can be used on demand is that costs are only incurred when the loan is actually used.
In general, short-term loans for freelancers are difficult to obtain, as the bank has an increased audit burden compared to the employee. In addition, the default risk for self-employed persons is higher.
Something else works a supplier loan. In this case, a supplier grants the freelancer a deferred payment and gives the self-employed at least some liquidity in the short term.
Long-term loans for freelancers
In addition to real estate loans, freelancers and self-employed persons can apply for a medium or long-term loan via promotional and business start -up loans from KfW-Bank or promotional banks in the federal states. The rent or the acquisition of a property is next to other operating expenses in the expenses of a freelancer certainly at the forefront. The legislator has responded by granting loans and loans to freelancers and business start-ups directly or indirectly as part of various support programs.
Although the hurdles for lending to freelancers are much higher, the self-employed can also apply for installment loans at a few banks. A installment loan for freelancers, however, can only be envisaged if the credit rating is very good.
Private loans for self-employed and freelancers
In the event that a freelancer can not obtain credit from a bank, it is possible to realize a loan from private investors. Loans from individuals to freelancers and the self-employed have enjoyed great popularity for several years and are often awarded through online financial marketplaces.
Loan platforms on the Internet provide individual loans for employees and freelancers and check the credit rating based on various key figures. They then create a loan offer that is fully funded by private investors. Again, a negative private credit entry is an exclusion criterion and self-employed are relatively often rejected due to an unclear credit rating.
Sometimes, additional collateral can help to get a loan from private individuals. Since borrowing freelancers is often about investing in business, the self-employed freelancer can convince potential lenders with a good presentation and innovative investment goals.
Credit without private credit for freelancers
With a negative private credit information, the positive decision of a loan commitment for freelancers is almost a thing he impossibility. Reputable banks and loan platforms on the Internet grant a loan only if it has a sound credit rating.
In addition, some providers offer a special loan for freelancers without the participation of private credit. Such a loan is certainly not the optimal solution, but for many freelancers and the self-employed often the only way to finance a larger sum.
The terms of a non-private credit credit are in any case worse and not always it is easy to distinguish reputable providers on the Internet from dubious Lockangeboten.