The self-employed must constantly expect unexpected expenses. A machine is defective, a new office equipment must be purchased or the tax demands more money. As a rule, a loan should help with these problems. But a installment loan for the self-employed is not in all circumstances without problems to get.
What is the difficulty with a installment loan for the self-employed?
The statistics are staggering. About two-thirds of new economic livelihoods fail in the first year. Of course these numbers are also known to the banks. Therefore, they are particularly cautious when awarding a installment loan to self-employed in the early days of a new company, because the company of the self-employed bankruptcy filed for this creditor protection and the financial institution can bury the hope to get back the entire loan including interest. In addition, the self-employed (especially in the early days) do not have secured revenues that could convince financial institutions to lend as collateral.
The easy installment loan for the self-employed
The situation is quite different when an established self-employed person wants to take out a loan. Usually this asks for an investment loan. This means that he is asking for a loan to help his company achieve even greater financial success. Financial institutions that receive such loan applications from companies that are already in the profit zone and have a solid customer base usually enjoy a high degree of trust from banks for such loans. The same applies if the self-employed person asks for a personal loan in order to build a house or to acquire land. If the balance sheets are correct, the attitude of the bank is generally correct.
How do you get a installment loan for the self-employed?
However, if the bank does not trust a self-employed person, he or she must develop their trust and provide collateral. If he acquires machines for his company with the loan, they already serve as collateral. The same applies to office equipment or company cars. Only with larger personal loans, which create no added value for the company, one should present a guarantor, which convinces the bank to grant the loan, because he makes the risk payment if necessary.