Loans for the self – employed – How to apply?

In today’s world, self-employment is hard to imagine without a loan. This is either required so that the bills are paid or larger purchases can be made. Banks have long been no problem when it comes to lending to the self-employed. They have recognized that the self-employed are very good customers and always handle their finances correctly. So it is not as difficult as many think to be able to apply for loans for the self-employed.

What security must be available?

What security must be available?

Anyone who can demonstrate a regular income as a self-employed person will have no problem with banks when it comes to requesting credit. Anyone who can demonstrate good creditworthiness receives the same conditions as an employee. Banks require proof of the profit determination, the latest account statements, operational documents and income tax notices. The business license is also important because the self-employed activity should have been carried out for at least three years.

If you don’t earn enough, you can hire a second borrower who can secure the loan contract with a fixed income. The second borrower can either be the business partner or your own spouse. Only a regular income is important for banks, not the relationship between the borrower and the second borrower.

Cost and duration of loans for self-employed

Cost and duration of loans for self-employed

Most banks give loans to the self-employed in the form of installment loans. As with all other loans, these have to be repaid in small installments each month. The amount of credit that a self-employed person can take up depends on their creditworthiness. The better the credit rating, the higher the credit. The amount is then between 5,000 and 50,000 USD.

The term is then between one and seven years. The shorter the term, the lower the interest. In addition, a self-employed person cannot know how long the business is going as well as it is at the moment, so that long-term planning is not possible. The default risk is rated higher than for an employee, so that higher interest rates must always be expected.

How can I apply for a loan?

How can I apply for a loan?

Loans for the self-employed can be applied for from both the house and direct banks. Both have advantages that should be considered. The house bank knows all finances of the self-employed, so that they can quickly make a decision whether a loan is granted or not. A lot of interest can be saved with direct banks, since the processing fee that is part of the effective annual interest rate is often not applicable.

In addition, a direct bank also makes a decision quickly, so that the self-employed do not have to wait long for a decision. If you have submitted all the necessary documents, you can expect after a few days that the loan amount will be transferred to the account.

Non-bank loans immediately where they lend even without a register

More affordable and faster non-bank loan also without a register and proof of income

More affordable and faster non-bank loan also without a register and proof of income

Non-bank loans are relatively fast and easy to settle, much more affordable than bank loans, which are subject to much more detailed and deeper creditworthiness testing and proof of income. They may also be available to people with a record in the registry if the client has acceptable creditworthiness and the record is not serious. Especially for small loans, companies report that they tolerate registers. The registry is not the only parameter for approval. Another plus is the speed of processing and approval. Usually the client receives the money immediately after the loan approval and most of it to the account.

Money from private entities

Money from private entities

Non-bank loans are virtually everything except loans from banks, ie institutions with a banking license. All other credit products can therefore be classified as non-bank loans. It is obvious that this is a very broad term. The providers of these loans are well-established non-bank financial houses, specialized institutions or private investors. They all offer their free funds as loans on the market.

Advantages and disadvantages

Advantages and disadvantages

The general benefits are greater availability and a faster rate of money. Especially smaller amounts. The disadvantages vary depending on the providers, which are the whole spectrum and do not generally apply to all. In the non-banking field we find very serious providers, but we can also come across a company of inferior reputation.

  • Greater availability
  • Faster check-in
  • Wider range
  • Available in small amounts
  • Operational assistance before payday
  • First microloan free
  • They may be more expensive by type
  • I may be risky according to the provider
  • More confusing (for small businesses)

Risks of non-bank loans

The non-banking sector is thus very specific. You can find solid companies here, but also a non-solid company that only wants to capitalize on the ignorance of a few even desperate people and then no one will hear about it. The most frequent clients of non-banking lending institutions are people who usually need non-purpose funds in the short term. Another client can then be one that already has a record in the registry or with problematic income. All of these meet the non-banking sector in the form of various non-bank loans, which lend to almost everyone. An important parameter for approving a loan is assessing your ability to repay.

Problems may arise during repayment. In the past, many institutions have tried to include paragraphs in small letters in contracts, not to inform clients about rates and total costs, or to leave them uninformed. Beware of such companies. It is the law that the company or investor must do all these activities and sufficiently inform the client. Large established institutions have not had a problem with this for a long time, but small investors lending only a few tens of thousands of crowns may have completely different practices and contracts. With the new Consumer Credit Act, the situation has already improved.

Non – credit installment loan

Everywhere the banks advertise their loans. The term credit-independent installment loan is always striking. But what exactly is behind this catchphrase?

Pay attention to the fine print when advertising

Pay attention to the fine print when advertising

The banks promise a lot in their advertising. But many, for example, do not pay attention to the asterisk behind the number when it comes to interest rates. But that is exactly what it is about, because the interest rate mostly depends on the creditworthiness of the loan seeker and can therefore increase significantly.

Very few borrowers get the advertised interest rate. The credit-independent installment loan looks different, here the interest is not influenced by the creditworthiness of the borrower, but is based solely on the loan amount and its term.

The longer the term, the higher the interest

The longer the term, the higher the interest

Many want a longer term to pay off the loan. That is possible, but banks can pay for it in the form of higher interest rates. The advantage of this is that the rate is kept low. For people who do not have such a large income, this is the safest option, even if it is more expensive.

However, an installment loan that is independent of creditworthiness does not mean that the creditworthiness of the loan seeker is not checked beforehand. As with other forms of loan, the Credit Bureau is very much inquired here. The result of this query does not determine the amount of the interest, but whether the loan is approved or not.

Beware of overconfidence

Beware of overconfidence

Sometimes you should refrain from taking out a loan. There is nothing worse than fulfilling consumer desires with a loan that cannot be paid off afterwards. If the salary is sufficient, there is nothing standing in the way of a loan. However, mistakes are still made far too often, because most of them still use their house bank as a contact point for a loan request.

But that can be expensive. The banks all advertise with their low interest rates, but real savings can only be found with the online banks. Unfortunately, many borrowers still pay too much because they haven’t compared offers.

Repurchase of loans: Who obtains a grouping of credits?

Too many credits, too many monthly payments and not enough budget to live or embark on a new project?

Before declaring yourself in over-indebtedness and going through the Agree Bank box, there is a stage which makes it possible to relieve your ends and beginnings of difficult months: the grouping of credits.

As the name suggests, instead of having several loans, the borrower has only one, longer, but with less heavy monthly payments. In concrete terms, the bank pays its various loans to it and is reimbursed the amount advanced over a longer period and at a fixed interest rate. The borrower therefore reimburses the bank, which reimburses its loans.

In 8 months 22,350 households received a positive response from the bank

In 8 months 22,350 households received a positive response from the bank

Despite its particularities, the grouping of loans remains a loan, and as with any loan, it is useful to compare establishments, offers and rates. As a broker, Good Bank therefore offers this service and since the beginning of the year, 23,350 households have obtained a consolidation solution via our site.

What is their profile ?

What is their profile ?

Who are these people ? What is their profile and why are they asking for a combination? Man Woman ? Alone or as a couple? With or without children? Owner or tenant? We give you a portrait of these people who felt the need to reduce their credit budget, because it was necessary to act quickly before it was too late or simply to embark on a new project. Picture portrait:

To caricature, the typical profile of a person obtaining a grouping of credits is therefore a 45-year-old man, in a couple and with a child. He works on a permanent contract and his couple earns a total of $ 3,122 per month. With at least 3 consumer loans and a mortgage, once all of his monthly payments (loan, charges, pensions) have been settled, he begins his month with $ 1,500.

“A not yet uncomfortable place to live”

"A not yet uncomfortable place to live"

“Admittedly, they are almost 50% indebted but they finally have, even before operation, a not completely uncomfortable living space to live”, underlines Merl Bandie, the spokesperson for Good Bank.

“50% of pure comfort groupings”

"50% of pure comfort groupings"

Guillaume Follet, in charge of the credit consolidation service at Good Bank, notes that in the distribution of profiles, only a minority is really in a precarious situation : “50% are groups of pure comfort where the goal is to increase their balance to live and create an “air bubble” in their budget, 20% want to clean up a situation to buy a new property or improve an existing property, 15% want to finance a rental investment and finally 15% concern so-called complex groupings where indeed the financial situation is very delicate. “.

This study was carried out on the files submitted and having found a positive response via Good Bank. Today, whatever your profile and your project, you can submit yours so that our specialist advisers on the issue can find a solution.


Fast online loans: what are the real alternatives?

Let’s start by saying that the finalized loan is the one that best allows you to get answers in a short time. Whether you are trying to get fast online loans for the purchase of an appliance, or through the store, the answer will in fact come within a few tens of minutes or hours unless there are questions related to the regularity of the documentation. The question changes if you are trying to get a personal loan, which can include longer ‘start times’ even in the case of an online request.


Which type do they belong to?

online loan

Summarizing what has just been mentioned, fast online loans are loans, which can be both personal and finalized and which provide for very short evaluation, approval and disbursement times. They represent solutions created to offer answers to liquidity urgencies not necessarily aimed at a purchase.


Times and formalisms for the request

credit loan

The ‘indicative’ times for classifying the loans in ‘fast’ are in the order of 24 or at most 48 hours. However, these are the evaluation times to which must be added the technical times necessary for the transfer of the accepted amount or the delivery of the check, to lead the funded to have the effective availability of the money they need. Furthermore, the time required for the delivery of documents should not be considered in the timing.

As for the methods of request, in the case of fast online loans, the instructions indicated by each bank or financial company must be followed. In some cases we will proceed with an entirely online procedure, without having to print or sign anything physically on paper, while in other cases we will have to print, sign and then scan the documents or even deliver them physically (with a hybrid procedure between digital and traditional which can also lengthen the process a lot).

Based on what has been said, we can therefore summarize the procedures in two types:

  • 100% online procedure: this is a method that takes place entirely via the web through certain and secure recognition mechanisms that gradually provide OTP pins or passwords, from which insertion the digital signature is made. In some cases you will have to register on ‘third party’ platforms while in others you just need to register personal data to create the personal data required by law. The final result does not change since, as just said, the digital signature takes place with the insertion in the appropriate spaces of the unique codes associated with the applicant’s tax code;
  • Hybrid procedure: to confirm the request and sign the contract, it is necessary to print the appropriate forms, sign them physically and then carefully follow the shipping methods, being very careful that the signature is legible and clearly recognizable.

Of the two types of procedure, the one that provides more compact times is obviously the entirely digital one. In both cases, the forms (digital or paper) made available by the bank, platform or financial institution chosen must be used and the procedures as specified are followed.


Requirements needed

credit loan

The request for small amounts is the one that best matches the very short times typical of fast online loans. However, this does not mean that you can proceed with the request if you are without a paycheck, or rather in the absence of any demonstrable income. Furthermore, in online requests it is not always possible to proceed with the insertion of a guarantor in the file. So, if you want to try this path, you must make sure that you have, as requirements:

  • a demonstrable and sufficient personal income;
  • the documentation necessary to demonstrate both the possession of the income requirements and those that justify the expense (if any);
  • an account or an account card that allows you to charge the redemption installments;
  • a positive credit rating, or at most neutral.

As for the demonstration of a personal income, this must also be there when approaching more ‘modern’ forms of financing, such as in the case of those of the social lending type. In this case, the lenders are private and all this is done through the registration and request through the appropriate platforms.

The need for a ‘valid’ creditworthiness prevents access to the various forms of online loans to protestors. These may try to go the way of the loan changed or the assignment of the fifth, but there are various limitations, namely:

  • some companies however do not agree to finance the protests, but only the bad payers;
  • you must have the type of demonstrable income accepted (for example in the case of the assignment of the fifth you must be employees with a minimum working seniority considered sufficient);
  • we are not talking about 100% online loans. In fact, you must have at least one meeting with a consultant so you cannot proceed until the conclusion of the evaluation, completely online. Often we stop at a first remote stage to get a quote or a contact, but then the times get longer with the definition of an appointment and all the other subsequent stages.


Advantages and disadvantages

fast loan

When we talk about fast online loans it is not said that the least onerous economic conditions will be obtained. On the other hand, it is certain that an economic response to an urgency or an unexpected event will be possible. Furthermore, there is the advantage of not having to spend time and money to move, risking having to take work permits, or not being able to rely on a close defense of one’s privacy, through the use of direct communications on the contacts included in the contracts.

The disadvantages we must consider the generally low sums that can be requested, and the restrictions on the types of loans that are actually accessible (for example, transfers of the fifth or the loan changed). Furthermore, entirely online procedures can discourage those who are unfamiliar with the web and this type of digitized procedures.


Car loan what do I need – it’s that easy online

Income is an important licensing factor. This is demonstrated by proof of income from the past few months. More of this story:

With a car loan what I need, the credit bureau is also queried. An open-ended employment contract is also important.


Car loan what do I need – financing

Car loan what do I need - financing

Many consumers cannot pay for a new car or a used car in cash and opt for car financing. If a loan is taken out from the bank, the bank often requests the vehicle letter as additional security.

Car loan what do I need – it’s that easy online

However, the car is the property of the bank throughout the credit period. The disadvantage, if the customer wants to sell the car because, for example, it is in a financial bottleneck, he cannot.

The other way to finance your car is to get a car dealer loan. Even if this entices with very favorable interest rates, a loan comparison should be made to determine whether the loan from the dealer is really that cheap.

If the car buyer buys his car and pays cash at the dealer, the discount granted may exceed the interest savings.

What do I need for a car loan – when is a car loan useful?

What do I need for a car loan - when is a car loan useful?

When it comes to car loan what do I need, there is also the question of financing or cash payment. Many borrowers would be able to pay for a car in cash. They built up reserves and often invested well for years. However, experts advise that it is better to finance the car purchase than to attack the financial reserves. That may go well for a year. But then other unexpected purchases come and the reserves are gone.

The consequence of a further loan has to be considered. The overdraft facility is often also overdrawn if it is a small purchase. However, if he finances his car, his financial independence is preserved. Especially in view of the fact that a car loan can be granted at particularly low interest rates.

Which loan amount makes sense

Which loan amount makes sense

In addition to the question about car loans, this is what I need the most common question. Before a loan application is made, you should first calculate. The offers of the auto industry, but also those of the banks, are very tempting. If you believe these advertising messages, car buyers almost get the car for free.

The buyer will find that this is far from the case when he asks for financing. In addition to the question of car loans, what do I need, but there should also be the question of what I can afford. Therefore, all earnings should be listed first. The expenses are set against this, but should also include everything. From the contributions to the children’s sports club to the rent. Car buyers should make sure that car financing can be provided with a salary if possible.

If a couple takes out the loan together and one of the partners loses their job, the previously agreed high loan amount can no longer be paid.

Pay attention to flexible framework conditions

Pay attention to flexible framework conditions

Anyone who takes out a loan, whether car loan or other financing, should make sure that their credit remains flexible. This includes special repayments. The financial situation can always change over time. That can be positive but also negative.

If unemployment or a serious illness occurs, a downward change in the credit rate could make sense. Rate breaks should also be noted in the loan agreement. However, the financial situation can change for the better. Insurance is paid out or the employee receives bonuses from the employer.

These amounts could then be paid into the loan, which in turn ensures that the car loan is paid off faster. It is also important to pay attention to the corresponding term. If you opt for a long term with low rates, you pay more for your car loan. With a short term with high installments, the loan is paid faster.

If you cannot pay high installments, three-way financing could be an option.

Car loan what do I need – the consequences of not paying

Car loan what do I need - the consequences of not paying

There are often signs when a financial bottleneck is in the offing. First installments are difficult to pay. First bills are pushed back and forth and sorted according to urgency. Anyone who is in such a situation should immediately seek a conversation with the bank.

Lowering the credit rate could solve the problem. To do this, the term would then have to be extended. If the car was used as collateral, the bank could reclaim it if there is a loan default. That is why quick action is important.

Car loan what do I need – documents for an online loan

Car loan what do I need - documents for an online loan

Actually, the required loan documents are always the same. Information about the bank details is required with account number and bank code. Income is proven on the basis of salary slips from the past few months. Bank statements from the same period are often required.

The self-employed must submit income tax assessments from the past few years or a business interpretation. A budget listing all expenses, including maintenance payments. Also a list of existing liabilities such as loans or installments. Some lenders also require a copy of the employment contract or pension notice.

Customers must generally be of legal age and have a permanent residence in Germany. The income must have a attachable portion and should not be pledged.

The clean credit bureau is very important.

Credit with temporary agency work

Many companies employ staff from temporary employment agencies. This saves you the incidental wage costs yourself and you do not have to pay holiday pay or Christmas bonus. This item of personnel costs is already noticeable, even if the temporary employment agency demands a high hourly wage. For the employee, working in a temporary employment agency means a permanent job, which also affects a loan approval. In contrast to temporary contracts, temporary work is not limited.

Loan with temporary work

Loan with temporary work

Many employment relationships have arisen from a temporary employment relationship. It is not uncommon for temporary workers to be recruited from the companies they once helped out with. The temporary employment agency can also prove to be a career springboard for employees. Temporary work is not a problem for the banks. It is a job like any other, only that the area of ‚Äč‚Äčapplication can change constantly. The bank doesn’t care. What is important is the unsigned employment relationship, everything else is of no interest.

The income situation is important for a loan approval. It must be ensured that the borrower can also afford it based on his salary or wages. The bank therefore compares the income and expenditure and checks whether, after deducting all monthly expenses and the installments for the loan, there is still money left to make a living. If this is not the case, a credit refusal can occur despite a good credit rating.

If the temporary work is only limited

If the temporary work is only limited

Unfortunately there are also temporary employment agencies that only hire their employees for a limited time. If the work in the loaned company is completed, the temporary employment contract also ends. In these difficult circumstances, a loan with temporary work is not possible, because many of those affected are back on the street afterwards. A temporary agency loan is only possible with an open-ended employment contract and after the end of the trial period.

Where can I get a temporary agency loan?

Where can I get a temporary agency loan?

In addition to the classic models via branch banks or online banks, there is also the Smava portal. It is an association of private individuals who lend money. The interest is then your profit. Here it is entirely possible that a temporary worker with a fixed-term contract will receive a small loan, which must be repaid within the limited employment relationship. An inquiry is free of charge.

Gold loan: solutions and best banks

This type of loan has very special characteristics, both because it addresses a very specific type of customer and because instead of making a sum of money available, a good is physically delivered, which is represented by gold, understood as raw material .

Those who can access this type of loan are therefore those who transform and market gold, who will obtain the delivery of a certain quantity purchased and owned by a bank, so as to be able to transform and market it.

Characteristics of the loan for the use of gold

Characteristics of the loan for the use of gold

The person who requests it can choose two methods of repayment . The most usual means that the bank delivers the gold, which remains its property (therefore without invoicing but with the accompanying delivery of the goods through the issuance of a transport document). Therefore, the beneficiary must return both the interest provided for in the contract and the return of the same amount of gold received through the loan at the due date (generally following the quarter following the loan).

The other method of restitution always provides for the payment of the interest provided for in the contract, but instead of returning the equivalent of the gold obtained on loan with other gold, you pay the sum corresponding to the bank by effectively becoming owners of the gold. In this case the bank must provide for invoicing.

Normally, in spite of the particularity of the loan, the basic logic is that of opening a credit line , with the granting of loans of this type up to its capacity (with the return of gold it is restored in whole or in part the credit line for the returned value). There are many banks that offer this kind of loan, the conditions of which can generally vary.

Banks that provide this type of loan

Banks that provide this type of loan

  • Among the banks that are part of the “popular” is the Best bank , which provides for the availability of 1 kg  but on request also bars of 12.50 kg ;
  • The MPS provides a wide choice, and a system of fixed costs (equal to 50 USD) for the lighting, the extension and the operations of returning the gold, in addition to the calculation of the interests;
  • Unicredit provides for the calculation of interest numerous maturities, with different amounts, and fixed management costs ranging from a minimum of 15 USD (practical opening) to a maximum of 49 USD for the related closure.