The self-employed often have to search a long time to find a bank that offers cheaper credit for the self-employed. Many loans are offered on the Internet, but it is more difficult to find a cheap loan for the self-employed. The selection of credit institutions is limited to very few providers. Nevertheless, the search should not be abandoned too quickly, because there are certainly providers who grant this loan.
Default risk for banks with cheap credit for the self-employed
If you want to take out a normal loan, you often only need a perfect private credit checker and the current certificate of earnings to get the loan. Many loan applications are processed automatically if the appropriate software is available. Self-employed people cannot get a loan in this way because they cannot prove a certificate of earnings and therefore no regular income. Banks see this irregular income as a risk and loan requests cannot be processed automatically.
Credit institutions must obtain additional information from a self-employed person in order to be able to check the creditworthiness. This information includes income tax returns, a business report and a bank report. These inquiries are always made manually and are time-consuming, so that only a few banks offer a cheap loan for the self-employed.
Find cheap credit for the self-employed
Every applicant who is interested in cheap credit for the self-employed must obtain sufficient information and research beforehand. A look at the Internet often helps, because borrowers will find most offers here. It is not uncommon for the loan to be granted by private investors, for whom it does not matter whether the applicant works as a self-employed person or as an employee. Often, a loan is granted here without a major examination, but the applicant should not rely on his gut feeling. There are not only reputable banks and private individuals among the providers.
Many experience reports can already be found and a credit comparison can also be concluded. Inquiries should always be free with a loan. If someone is already asking for money, you’d better stay away from it. What is important when comparing credit is the effective annual interest rate and whether there are also special repayments. With these, the loan can be repaid more quickly by the borrower, so that the monthly charges can shrink considerably. Interest rates should only be a little higher than with a normal loan, so that the loan does not become too expensive in the end and every freelancer can also afford it.