Credit rejection often without justification by the bank!
If the desired self-employed loan is not granted, the applicant always asks why. But this is exactly where the problem starts, because as a rule, the loan cancellation takes place without any explanation of the specific reasons. With this anything but customer-friendly behavior of the bank, this wants to elude any discussion with the loan seeker.
The concrete reasons for the rejection of credit for self-employed can nevertheless be determined, if one analyzes the credit conditions of the bank! The typical requirements for a self-employed loan are as follows:
- Result from business evaluation is positive
- Average income in relation to the requested loan amount is sufficient
- several years of successful self-employment
- depending on the bank additional collateral such as guarantee
No standardized procedure for the loan for the self-employed!
In contrast to employee credit, banks often do not have a standardized audit procedure for self-employment loans. As a result, the above 4 criteria are handled very differently by different banks. For example, the assessment of the positive business evaluation of different banks can be very different. The same applies to the question of a sufficient average income in relation to the desired loan amount as well as the successful professional activity over, 2, 3 or more years. There are also very different conditions for additional collateral, depending on the bank. This makes it very clear that the self-employed is well advised to obtain an offer from at least 2 to 3 commercial banks. The collection of several offers is worthwhile, because the credit comparison proves to be particularly lucrative for self-employed people.
Typical reasons for declining the loan for the self-employed:
- Business evaluation: sales and profits too low.
- Requested loan amount too high in relation to the average income
- Self-employment less than 2 years
- No or too little collateral
- Debt already too high
- negative Private credit evaluation
- Area of activity is considered risky
- Qualification of the applicant is criticized
Crowdlending as an alternative to the bank!
What to do if all else fails and no credit can be made despite multiple requests? Crowdlending as an option for obtaining credit is hardly known to many self-employed. Crowdlending is the term used to refer to loans brokered through an online platform that are given by individuals to other individuals (the self-employed, entrepreneurs, freelancers, founders, etc.) or companies. Crowdlending takes place on online credit marketplaces such as moneyor or creditend, which charge a fee for their brokerage activities.
Especially for small loan amounts – typically for self-employed people – crowd lending platforms are interesting alternatives to the bank. Many self-employed people do not know that traditional banks can offer a credit cancellation despite a good credit rating, as the bank’s lending business does not pay off.
Self-employed, tradespeople and freelancers 95% did not know that…
- … you should inform yourself about the credit requirements in detail, before you go to the bank or online!
- … Company leasing is a suitable alternative to normal corporate lending if there is no equity or otherwise tied up, or if the lines of credit are not to be charged further.
- … with the financial portal inancingent the credit chances increase at least 100% compared to the house bank and can save over 30% interest? More: SME tip: 100% higher credit chances and 30% interest savings!
- … Factoring as a credit alternative for medium-sized companies is not only an interesting solution in times of crisis!
- … inancingent can also be used to optimize commercial real estate financing.
- … the FinTech iwoca makes short-term bridging loans up to € 100,000 possible within a few hours and thus within one working day!
- … a financially strong guarantor definitely increases your credit chances?
- … the purpose of the loan may also be of importance in the credit decision of the bank.
Everything else about loans for the self-employed, freelancers, founders, entrepreneurs, tradesmen and small companies can be found in our practice guide loans for small businesses and the self-employed.