Börse Express – Financing for the self-employed

If you no longer work as an employee, then you lose a certain ability to plan your income. As a self-employed person, you have to rely on receiving a steady flow of orders. This can be difficult, especially in the start-up phase, as you first have to establish yourself on the market. In addition, there are necessary investments in equipment and technology. These have to be lifted at the beginning.

This can quickly have an impact on private life. Suddenly, with every issue you are faced with the question of whether it is useful and necessary. Or whether it shouldn’t be better to create a larger reserve in the event that clients drop out. Under certain circumstances one comes to the conclusion that one cannot avoid an issue. If the car is broken but you have to stay mobile, you need a replacement quickly.

Banks are more critical for the self-employed

Many people turn to a loan to buy a car or new large electrical appliances. You can conclude this directly on site at the car dealership or electronics store. At least as an employee, because then the monthly salary statement is the most important document for credit checks. As a self-employed person, you have neither this proof nor a guaranteed regularity of income. Banks generally look much more critically at a loan application from a self-employed person.

Fortunately, with the increasing number of self-employed, the range of financing options is also changing. Various providers have also committed themselves to lending to the self-employed. And you can compare them directly with each other. It is particularly convenient to have one Loan for self-employed with match bankers to search. Interest, terms and loan amounts can be compared at a glance. You can rely on the fact that these offers are expressly for the self-employed. In the case of other offers on the Internet, you should first check this before looking forward to a cheap offer.

Loans need to make economic sense

With every loan you should ask yourself whether it makes sense. Does it finance consumption like a trip or a bigger car? Or is it for a necessary purchase such as a refrigerator or the family car. You should also check whether you can save on the purchase yourself. Maybe you can do without a few horsepower or opt for a used car.

The reason for this is that the repayment of the loan must always be guaranteed. In order to burden the household bill as little as possible, you have two options. With a short term and the associated higher rates, a loan is repaid quickly. There is no monthly payment, while the purchased item can be used for a long time. The second option would be to choose the longest possible term because this reduces the monthly load. The rate will then remain serviceable even with fluctuating income. Here everyone has to decide for themselves which way they want to go. From the point of view of the bank and with a view to possible further borrowing in the future, a quick repayment of loans is preferable.

It looks a little different when you get a loan for self-employed own business want to record. Expansion in particular is almost always associated with costs that cannot be financed from cash flow. But banks and financing partners will also assess this differently than an installment loan for consumer spending. In principle, however, both are possible.

Loans are part of business life

Because income cannot always be planned, loans are part of the business life of a self-employed person. They are absolutely not a sign of weakness, but an instrument to control the success of your own company. However, you have to accept that banks will request extensive documents for the examination of a loan request. In addition to the current and past business figures, these can also be business plans. Certainly you will also have to regularly disclose interim figures for the quarter or half-year. By integrating the tax advisor, you can keep your own effort for this manageable.

For the private environment, one should also consider loans. It is certainly nicer when you can pay for purchases in cash after you have discontinued your professional success. On the other hand, you should treat yourself to something and not always back down for independence. There are many levels between the two extremes of absolute frugality and wasteful consumption. And everyone can decide for themselves what they allow themselves privately to compensate for their day-to-day work as a self-employed person. You shouldn’t lose sight of family members.

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