In the first place, banks check the financial situation of a customer when applying for a loan. Banks need to know if they can pay the installments on a loan they want. For this, the income is crucial. For employees and workers, proof of wages is sufficient.
The self-employed have a much harder time in this regard. With just a few papers, the self-employed cannot prove current income. Overall, lending after the loan for the self-employed comparison is more complicated than for employees. The guidelines are interpreted much stricter, even if the award is largely based on the criteria themselves.
The secure income
Unfortunately, the fact that the self-employed generate a possibly passable income does not change anything. For banks, after a loan for the self-employed, the continuity and security of the income is important and not just the amount.
Unfortunately, the self-employed always have to reckon with the fact that business is going worse. Since the banks also know this, the risk of default is rated higher among the self-employed.
In some cases, worse conditions apply when lending. The self-employed must disclose their finances so that it can be demonstrated that enough money is being raised. However, a copy of an account statement is not enough.
Depending on the type of business, banks require tax certificates of several years, income-surplus bills and balance sheets. If a person has just started his own business and data can be submitted, the chances of getting a loan for the self-employed are relatively poor.
Lending is industry-specific
When lending, it only plays a limited role whether a person is freelance or otherwise self-employed. On this point, banks hardly make any differences and when they do, mostly freelancers are given preference.
This cannot be generalized and depends on the company’s business policy. Too many factors flow into the decision, such as customer qualifications, experience and the industry.
A credit for self-employed comparison is important
However, there are also banks where a loan for the self-employed is treated almost like a loan for employees. Almost the same conditions are then granted here. There are a number of direct banks for this purpose in a loan for the self-employed.
Some banks differentiate partially between the self-employed and freelancers. For the granting of a loan, only a look at the precise requirements helps here. A credit for self-employed comparison is the only way for cheap offers and then to borrow money cheaply.