Unfortunately, it is not easy for every bank to get a loan for freelancers. Many banks still have the outdated picture that freelancers have a poor income and are not successful in their jobs.
Not all banks think so, because many banks have recognized how solvent a freelancer can be, whose income is often above that of an employee. The monthly income is always different, but those who have worked in the profession for several years can prove that they always have at least a minimum income.
What are the requirements?
Freelancers are given special consideration when lending. When it comes to a business loan, different documents need to be presented. The test for this can take a long time. For example, a profit and loss account must be submitted, as must the income tax statements.
Furthermore, at least the last three bank statements must be available and Credit Bureau information is also required. The applicant must demonstrate that he has been working as a freelancer for at least two years. Only then are the documents checked and only then is it decided whether the loan is approved for freelancers.
Conditions that are assigned to the loan
Many think that a freelancer has to pay more interest on a freelance loan. This is not always correct, because here too the credit rating is decisive. The better this is, the better conditions are given by the bank to the borrower. If the credit rating is not so good, the interest rate will rise in any case. To prevent this, the freelancer can do something himself.
It can provide collateral that can increase creditworthiness. These guarantees include capital life insurance and a guarantee. The surety can be given by a person of your choice. It only has to be a secured income from a non-freelance activity for the guarantee to be approved.
Credit comparison always important
Even if freelancers don’t have a large selection, they should compare the few offers. Banks often think that the freelancer will have to make a quick decision so that a loan can be applied for. But a loan comparison doesn’t take long and can be done from home. This takes little time and is rewarded with good offers that are found in this way.