As a self-employed person, getting a loan from a well-known lender is still very difficult in Germany, because despite an often high income, banks still rate self-employed people far behind traditional employees.
Risks of taking out a loan
This is justified by the fact that the self-employed have a high risk of default, for example if their own 1-man company is no longer running, orders fail to work as freelancers or the financial situation of the self-employed is otherwise in a difficult situation. In contrast to an employee, the self-employed also have no protection against dismissal, theoretically and practically their income can simply drop from one day to the next.
As a result, lenders are wary of approving loans for the self-employed, also because they are often used for business purposes and are therefore no longer to be found in the area of micro and small loans. Nevertheless, cheap instant loans for the self-employed can be found on the Internet through direct banks. The borrower, in this case the self-employed person, can expect to be subjected to a thorough examination of the loan approval, but this is by no means excluded.
When making the application, it is helpful to choose not only the cheapest possible loans, but also the shortest possible term. In this way, the risk of default over a longer period of time, which a bank always sees in a self-employed person, can be at least partially minimized.
Some hard requirements have to be met
Cheap instant loans for the self-employed differ only slightly from conventional installment loans in that they are issued to the borrower as an instant loan a maximum of 72 hours after the loan application. The quick loan is therefore excellent if liquid funds are really needed quickly. It is helpful when applying for a loan if the self-employed person has potentially attachable assets. This increases his creditworthiness, since the bank can access the borrower’s assets in an emergency.
In addition, the requested loan should of course be in a certain relation to your own income. In the case of a self-employed person, however, it is not simply a matter of paying attention to the monthly net income, but much more of the annual turnover achieved and the profit after tax. In this way, the bank can better use the return and the order situation of the self-employed and put it in relation to the loan amount.
Of course, the chance of a promise for cheap instant loans for the self-employed increases if the loan and its term are as short as possible. The self-employed do not have it easy on the credit market, although they often have a higher net income than employees. A credit comparator also helps the self-employed to find the right provider.