Self-employed people usually have a much harder time getting a loan. Banks check very carefully, especially with start-ups, before making funds available. The centerpiece of a credit check is the solvency, and this can become a major obstacle for the self-employed. Of course, lenders are also rather reluctant due to the often lack of guarantees and irregular income, if self-employed and founders want to apply for a loanbut creditworthiness is the deciding factor in most loan procedures.
Reliability, conditions and bank scoring: what does it mean?
here is the solvency not only responsible for whether a loan is approved in principle, but also, under what conditions a contract can be made. Self-employed people and founders usually have to bear significantly higher interest rates on loans, which means that loans are not only harder for them to get, but also much more expensive.
Score – Banks control this
Bank deposit score perish if they die solvency of a potential debtor. The economic and private background of the applicant is included in the score. In addition to personal and private assets, this also includes income and expenses, any liabilities to other parties and, of course, collateral other than income. The higher the score, the lower the probability of default as a borrower and therefore the creditworthiness.
Further difficulties may arise for the self-employed, especially in the area of guarantees. Since an employee's fixed income with its foreclosure portion is no longer available as collateral, lenders monitor it very carefully and individually evaluate all potential collateral. This can take some time and complicate the loan process.
Of course it is also possible Loans despite poor creditworthiness and without Schufa ask for something. However, this route is not always recommended, because loans without a credit bureau are usually more complicated to process and, in most cases, are linked to very high interest rates. However, there are ways that self-employed people and founders can improve their credit rating and thus their chances of getting a cheap loan without any further hurdles.
Improve your credit rating: You need to pay attention to this
#1 Keep an eye on your creditworthiness
Good preparation for an interview with a bank is the most important step towards success. Self-employed workers and founders in particular should therefore obtain an up-to-date picture of their creditworthiness right from the start.
Indeed the legislator Self-employed workers have the right to obtain detailed information on their creditworthiness once a year. The best places to go are independent credit bureaus like CRIFBÜRGEL OR credit reform. The annual self-assessment is aimed at self-employed workers and founders free AND it should therefore be used regularly. If the credit check reveals incorrect information or data that is no longer up-to-date, the credit bureaus are legally obliged to correct or supplement the information free of charge.
You can also take advantage of a paid membership with a reputable credit agency. This option is worth considering, especially for self-employed people, because members receive a qualified and detailed credit report at any time, which can also be presented to a bank as a basis for negotiations. Depending on the extent of your membership, you can also use credit agency support to improve your creditworthiness.
#2 Adhere to sales and revenue planning concepts
Banks only work with companies that are economically viable for them. Therefore, as part of a loan process, they usually also require the presentation of coherent concepts for sales and profit planning. Above all The self-employed should calculate their numbers in such a way that they can realistically be met and always stay as close to the goals as possible. Excessive deviations between actual and planned figures can affect creditworthiness and have a negative impact on lending.
Of course, company figures and concepts are always subject to certain fluctuations. If the objectives achieved are well below the specifics of the plan, a detailed analysis of the context can be useful. For example, it is advantageous for creditworthiness if the self-employed person can submit business reasons for a discrepancy between actual and planned figures to the bank. The more extensive the explanations, the more transparent sales and profit planning remains for the bank.
#3 Better Credit Score: Increase your equity ratio
THE equity ratio it is mainly among the self-employed important factor for solvency. It is calculated from the share of equity capital in the total balance sheet total. The higher the net worth, the higher the creditworthiness, as long-term securities are available. One Equity share of at least 30%. has a positive effect on creditworthiness and thus on loans. An equity ratio of 10 percent or lower, on the other hand, is a very high hurdle that most self-employed people fail to meet when applying for a loan.
In order to actively increase the equity ratio, the self-employed can regularly build up reserves that are in an economically reasonable relationship to the investments, i.e. they should be exceeded as rarely as possible. Also, reducing profit drawdowns can actually increase your equity ratio.
#4 Limit the credit period on your liabilities
The credit period of a company has a decisive influence on its creditworthiness. Especially the self-employed and founders should therefore pay close attention to the meet its short-term liabilities. It can have a particularly beneficial effect on creditworthiness if the discounts in connection with invoices are exhausted to the greatest extent possible. This not only reduces liability, but the short credit period is also a positive sign for a bank.
5# Plan long-term investments and justify them well
Self-employed and founders usually cannot avoid investments.
If projects need to be pre-financed, it can be have a positive effect on solvency if plans are presented as long and detailed as possible Candies. It is also important to always justify the need for investment from a commercial point of view. In this context, it is also good for solvency if at least part of the required pre-financing can be covered by reserves.
6# Not requests for credit but requests for conditions
It looks similar, but it has other consequences: your credit rating doesn't change when you apply for a loan (KA), but this request is noted in your credit rating for 12 months. Several loan applications may give the impression that you have already applied for several loans but all of them have been rejected. If the bank you want a loan from sees it, employees might as well turn it down just because of peer pressure.
A condition request (KK), on the other hand, is credit-neutral/Schufa-neutral, i.e. it does not cause an entry in your creditworthiness and has no influence on your score.
7# Request for accreditation only after registrations have been cancelled
If you have an entry into institutions, you should wait with the loan application until cancellation period of the entry has expired.
8# Don't move so often
It sounds a bit absurd, but it is true: Those who change their place of residence more often certainly do not have a particularly good Schufa rating. Consistency is good for your creditworthiness and improves your position at SCHUFA.
9# Avoid unnecessary checking accounts and credit cards
Multiple checking accounts e credit cards they are seen by credit bureaus as a sign of unreliability – and you should also avoid frequent checking account changes.
#10 High dispo = better rating
Still a bit absurd but relevant in the system: Banks save your current account overdraft in your Schufa file. The higher the current account overdraft deposited, the better the bank's assessment of your creditworthiness will be. A line of credit terminated for overdraft, on the other hand, will be noted negatively on your file.
Better credit: offer a guarantee or a second borrower
If lenders are still cautious after the credit check, it can have a positive effect if self-employed persons and founders seek the help of a other person worthy of credit offer. It often shows up Lenders are also more cooperative if the loan is split between two borrowers becomes. With a second borrower, the probability of default decreases. Self-employed people who want to make an investment can therefore definitely think about it a business partner with a high credit rating on board and thus improve your chances of getting a loan.
It is more difficult for the self-employed to get a loan, but not impossible. Those who place importance on their creditworthiness from the outset and make business decisions that improve their creditworthiness can significantly reduce teething problems in the lending process.
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