The granting of finance is a profitable business for the banks, they earn very well from the loan interest. Of course, the bill only works if the loan is paid in full. If there is even little doubt about the creditworthiness of a prospective loan, a bank will usually refuse to lend.
If you don’t have proof of a stable income, you have a slim chance of getting approved. Worse, you can get downright rejected for a loan. Even though you’re earning more than an average employee, lenders will still see you as a credit risk because of the usual unpredictability of freelance income unless you have documents to prove otherwise.
With a negative credit information nothing works, but there are also some other criteria that make borrowing difficult or even impossible. The status “Independent” is one of them.
Self-employed people have problems getting loans
The large army of the self-employed, who keep themselves afloat with little income, is one of the problem customers in the banking industry. You cannot offer one of the most important forms of security, regular fixed income. Your income fluctuates and always depends on the respective order situation.
Naturally, the self-employed cannot guarantee the repayment of a loan without further ado, this applies particularly to long-term financing that runs over several years. If the self-employed suffer a professional shipwreck, the credit usually also bursts. This is a risk that many banks do not want to take. The self-employed must therefore specifically ask for tailored loans for the self-employed / freelancer.
Quick loans for the self-employed
In the case of a loan for the self-employed , the bank looks particularly closely at the applicant’s economic history. Business that is currently doing well is not sufficient as security; the bank wants to get an idea of the sustainability of self-employment. The applicant can prove this, for example, by means of a business evaluation of the past few years.
The longer the self-employed can live from his job and the lower the income fluctuations, the more likely he will get a loan. Normally he has to additionally secure the loan with a residual debt insurance, which will step in when the borrower can no longer pay the installments. In any case, the loan agreement should offer the possibility of suspending the repayment or paying off large installments in advance.