The self-employed are solely responsible for their work. They also bear a certain risk by pursuing their own business model. However, there are some hurdles to be overcome at the beginning, especially if you have little or no start-up capital. After all, for example, office space or a vehicle must be procured and kept.
Then there are the expenses of everyday life. If you still have family and children, the financial situation of the self-employed is often tense. Vacation trips and other luxury items are hardly noticeable, especially in the first years of self-employment. This is a real dilemma, since here too the need exists in principle. But there is a remedy, namely a small loan for the self-employed that banks and credit institutions offer their customers. The following article shows the terms, conditions and conditions for such a loan.
The basis for lending – creditworthiness and clean Credit Bureau
A small loan for the self-employed is very well suited to cover purchases of up to 5,000 USD. For example, you can use this amount to buy office equipment or similar. The loan is usually only granted if the lender has certain collateral. Proof of income is not an option for a self-employed person because there is no regular income at the beginning. With regard to other collateral that ensures the creditworthiness of a lender, ownership of shares or real estate also belongs.
If these are available, a small loan for the self-employed is a very realistic thing. Another basic requirement for a loan of this type is a clean Credit Bureau, which means that there are no negative entries in the nationwide uniform database. Otherwise, the loan was promptly rejected. The conditions and framework conditions for a loan for the self-employed are set out and explained below.
Interest, term and Loan amount – they form the amount of the installment
In the case of a small loan for the self-employed, maximum loan amounts of up to $ 5,000 apply. As with conventional loans, the term of the loan is between 6 and 60 months. The lender should compare very well when it comes to interest rates. After all, there are big differences between banks. The interest rate range is between 4 and 14 percent.
All of these factors ultimately result in the amount of the monthly repayment. Usually there is a final installment at the end with which the loan term ends. A loan for the self-employed is therefore a very fine and pleasant thing. It benefits the founders of the company, because financial resources are absolutely essential at the beginning.