Self-employed people can sing a song about it when it comes to a loan. Most banks receive a rejection from the self-employed. In most cases, a negative Credit bureau is not the problem. Rather, it is the uncertain economic situation that leads to a loan refusal. Nevertheless, there are banks that offer an express credit for the self-employed.
What should the self-employed pay attention to?
A rush credit for the self-employed should be chosen with caution. The banks have different conditions, especially for such loans. Here are some examples of banks that like to lend to the self-employed:
The net amount is freely selectable up to a loan amount of 35,000 USD. The term is up to 84 months. The APR starts at 1.89 percent. However, it must be said that only very few borrowers get this low interest rate.
The loan amount is freely available. A copy of the last three income tax notices must be enclosed with the application. If the credit check is positive, the money will be transferred immediately.
Barclays also offers credit protection specifically designed for the self-employed. The loan can be against
– Defaults on business, death or incapacity to work are secured.
– There is help with a return to employment.
The loan seekers can find out more details on the bank’s website.
Agree bank also issues an express loan for the self-employed. With the appropriate creditworthiness, the loan seeker can expect a loan of up to 35,000 USD. The rates are a maximum of 84 months. Free special repayments are free of charge up to 80 percent of the remaining loan amount. Rate breaks are also possible. For the application, the loan seeker must enclose a business registration or an extract from the commercial register with the application. The last tax assessment is also required.
At Agree bank, the chances of success increase if a second borrower also applies for the loan. A good credit rating must always exist. Without these, the chances of success are very slim. It is also important for the banks that the borrower has additional collateral. An important prerequisite is that this activity has been carried out profitably for at least two years (depending on the bank, three years).
Life insurance policies can be assigned to the bank as collateral. When it comes to a car loan, the bank wants to transfer it by way of security or, in the case of real estate, to enter a land charge. It will be difficult for start-ups who have just started. Here it becomes even more difficult to get a loan approval.
A personal loan can also be helpful. Private investors are in the background. The interest on a loan is its profit, especially since it is higher than with any form of investment. Self-employed and freelancers are welcome. Registration on these portals is free of charge and does not require anything.
In any case, it will not be easy to find an express loan for the self-employed so quickly. The banks mentioned above are only a small part. A credit comparison can be used to find other financial institutions that are happy to lend to self-employed people. A free comparison is definitely worth it.