Banks are happy to lend to workers in the private and public sectors. These two occupations have a regular income because of their non-self-employment. The banks like to see that. But what happens with freelancers and small businesses? For them, the situation is almost hopeless. But there are also cases in which self-employed have received a credit request positive.
Simple, fast short electronic payday loans
The situation is not completely hopeless. There is the possibility to apply for a loan privately. The pioneer was once Smava. In the meantime, more providers are represented on the market with the same principle. The principle is simple. It is an association of private individuals who lend money and see it as a financial investment. This is even more profitable than investing money in a different way. The borrower determines the interest rate, which is usually higher, than with a loan from banks. Only if these refuse a loan, often only this way remains. The loan seekers for electronic payday loans are welcome here.
Companies have to submit their balance sheets for the credit decision. Freelancers and small businesses do not need to maintain balance sheets. You only have to carry out a business evaluation. It’s about showing revenue versus cost, and whether business or freelance work is promising.
The banks want collateral
The banks also want the money they lend back. The salary used by an employee is the security that enters into the checking account on a regular basis and on a monthly basis. A freelancer or small business owner has no regular income. Rather, it is subject to fluctuations that can not be insignificant. In order to better assess this financial situation, the banks want this business evaluation to get an overview. Especially beginners have their difficulties because they can not provide reliable numbers yet. A loan commitment is likely to be difficult here.