For many entrepreneurs, a installment loan for self-employed is part of the normal financing. A self-employed person can even deduct the cost of doing so from the tax. If the financial plan and the balance sheets are correct, the self-employed person often has no difficulty applying for installment loans for the self-employed. With the loan planned investments can be made. In a personal loan, however, it looks different.
Freelancers and self-employed people have a fluctuating income because they are always dependent on the paying customer and the current order situation. Even if a large profit was made at the end of the financial year, there may be months when profits will be lost. These are not good conditions for a installment loan for the self-employed. The banks always require a regulated income for the award, which is lacking among the self-employed. Many banks have now adjusted with special installment loans for self-employed and thus offer private installment loans.
Collateral in the allocation of a installment loan for the self-employed
If there is a regular managing director’s salary, there are few problems in obtaining a loan. The credit rating is always important, especially if there are no fixed monthly earnings. The Bank requires bank statements, income tax assessments, and company documents to help it assess the extent to which the borrower is creditworthy. Alternatively, it is also possible to hire a second borrower who has his own income, which comes from a non-independent activity. This can be, for example, the spouse who signs the loan agreement with.
Term and costs for a installment loan for the self-employed
Many banks are willing to lend a loan to the self-employed. These are often given in the form of an installment loan, the payout limit of which can range between $ 1,000 and $ 50,000. The term is up to seven years. A self-employed loan is often a bit more expensive than other borrowers. The credit check is more complex and the risk of default is higher than for other people. Therefore, a higher interest rate must be expected. Furthermore, the rates will be higher because the processing fees will be charged.
Although the loan for the self-employed is more expensive, it fulfills the purpose of settling important bills, making it very useful in order not to jeopardize the existence of the borrower. Who calculates well and sufficiently informed, will find a cheap loan for the self-employed. With a comparison, a lot of time can be saved if not all banks have to be called personally. In addition, even on the way of comparison, all the important information that is needed is released.