Financing for freelancers and the self-employed – how to get a loan

In everyday banking life, people who do not have a regular or fixed income generally find it particularly difficult to obtain financing – a statement that may not be generalized, but is true in most cases because the banks consider it.

Income from self-employed commercial or freelance work as a risk factor.

Income from self-employed commercial or freelance work as a risk factor.

Basically, the behavior of the banks is understandable: employees can plan ahead and more safely because they can use a fixed size in their income and expenditure structure – the situation is different for the self-employed. The monthly income is subject to fluctuations that are customary in the market. In the construction industry, for example, it becomes difficult in winter, but in summer in alpine regions that earn money with winter sports.

The bank takes a very close look at the customer’s creditworthiness: to do this, it is necessary to draw up a kind of household cost calculation. In principle, this calculation works in the same way as a household book, which means that the bank compares the income with the fixed and variable expenses in order to find out the amount that the customer has available for his free use each month.

Borrowers repayment installments

Borrowers repayment installments

This is the amount that the borrower can then use to pay the repayment installments – if the budget calculation leaves an amount that is too small or even negative, the loan is rejected because the customer has no financial scope to repay the debt to the bank or savings bank.

Basically, the following statement applies: only those who can afford a loan receive it. This means that the financial means must be available to the borrower in principle, but in the past they have simply not been saved, but used for other purposes (not for fixed expenses).

Incidentally, consumers are wrongly afraid of Credit Bureau information, because it always represents only one piece of the puzzle in the overall picture – if Credit Bureau is negative, although this statement alone is relative, it does not mean that the loan approval is not being refused.

The self-employed should talk to their house bank with the necessary self-confidence and well prepared – if it is an entrepreneur loan, an investment plan or a profitability plan is required, for business founders an additional business plan and a capital requirement plan.

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