Unfortunately, banks mostly do not give loans to the self-employed quite as easily as to private individuals who can demonstrate a fixed income. This has to do with the fact that the banks lack the security of regular income, as can be demonstrated by workers and salaried employees who work in dependent employment. The banks are not interested, and if only marginally, that the income of a self-employed person can be significantly higher.
It is often the case that banks do not offer a loan for the self-employed from the outset, because the effort to process the inquiries from the self-employed and the credit default risk is too great.
If the self-employed want to take out a loan, they have to spend a lot more time and patience than a private individual to actually get a loan. If you then find a bank that also offers credit for the self-employed, you usually have to live with the fact that this loan is granted on poorer terms with higher interest rates.
Why it is so difficult for self-employed people to get a loan
Loans offered by banks today as instant loans are mostly standardized banking products that are processed automatically using a standardized procedure. If the bank receives a loan application, the customer’s private credit checker information is automatically drawn, the economic performance is determined in the context of the budget calculation and the scoring procedure is used. In many cases, bank employees no longer have to interfere in this process. If the creditworthiness is appropriate, even the credit decision is made by the system.
However, the whole process only takes place for credit inquiries from private individuals who can prove a regular income. Credit inquiries from self-employed and freelancers are still processed manually today. This costs a lot more time and money because some other information, such as a bank report and / or a business report, is also obtained from a credit agency.
At many direct banks, the workforce is so low that the necessary capacities are not available. In addition, it does not pay off for many banks to employ more staff because of this. It is simply not possible to offer efficient and cost-effective credit for the self-employed in the first place.
How self-employed people can best get a loan
The few banks that grant loans for self-employed online include the Hamburg-based Netbank and Barclaycard. The DKB is also open to some self-employed people.
There is a high probability that the self-employed who are creditworthy will get their credit from the banks mentioned or from a credit brokerage company. Self-employed persons have to submit a current BWA and their last income tax assessment in order to prove their income. In addition, banks that lend to the self-employed often obtain bank information from the self-employed bank and order information about the company from a credit agency.