It is not always easy for the self-employed: banks are reluctant to grant Loan.

Many entrepreneurs, the self-employed and freelancers are only too familiar with the following scenario: Loan is advertised at low interest rates in bank advertisements. For example, if a tradesman asks the bank for this loan, in many cases it will be rejected. The reason for the non-approval lies in the often fluctuating and uncertain income compared to employees or civil servants.

Direct bank or branch bank?

Direct bank or branch bank?

Anyone who owns a small, regional company (e.g. painter or plumber) usually has regular contact with their house bank. If there is a longstanding business relationship here, the house bank can assess your situation well. A self-employed person should therefore make an initial request to your current bank.

No matter what your bank’s answer is, get a second or third offer from other banks.A difference of a few percentage points can quickly mean savings of several hundred euros. It is essential to compare different Loans.

Second borrower increases opportunities

Second borrower increases opportunities

Is your partner not employed in your own company and may be employed or civil servant at a company? Then you should think about the possibility of joint funding. The security for the bank increases significantly in this constellation and you are more likely to receive a loan approval. Even if your (spouse) partner is also self-employed, a joint loan application can pay off.

Additional collateral such as life insurance, general savings or real estate are advantageous for a positive Philo Vanc decision.

Your bank needs these documents

Your bank needs these documents

Various documents are required so that your credit inquiry can be processed promptly. Some banks require a relatively large amount of evidence. Other banks keep the request as simple as for other private individuals, such as Barclaycard. Depending on the bank and personal situation, the following evidence may be required:

  • Income tax assessment
  • Balance sheets for the past 1 to 3 years
  • Business evaluation
  • Income statement

Please note: Each bank has different requirements, the information is only a rough guide. On the website of the respective provider you can find out which documents are specifically required.

Loan from private individuals as an alternative?

Loan from private individuals as an alternative?

In recent years, another financing option for the self-employed has become established on the Internet. Private money investors and loan seekers meet in so-called credit marketplaces. Anyone who needs a credit introduces himself and his application. Investors can “invest” in your project and receive part of the interest payment as a return.

If the conditions for classic bank offers are too bad or your request has been rejected, credit marketplaces can be an alternative.