Menu

Bridging loan for the self-employed – is it?

0 Comment


A credit always checks the economic creditworthiness of the applicant. This check is made by proof of income such as payslips or tax assessments. For self-employed persons, these proofs of income can not be tested because they have no permanent employment. For this reason, the creditworthiness must be undertaken by means of other documents. As a rule, the future salary statements are liable for the reimbursement of a loan. Self-employed persons do not have such collateral. The bridging loan for the self-employed varies from bank to bank, so that the terms can be different. As a rule, a bank requires two to three percent of the loan amount as a processing fee.

How to apply for a bridging loan for the self-employed?

How to apply for a bridging loan for the self-employed?

The self-employed have the possibility to apply for a self-employed loan from a local bank or the internet. The online loan application must be started online and all necessary data must be entered. At banks, this happens in a personal conversation. Thus, a self-employed person must also know that he must present different documents when applying. These documents include the trade license, which confirms the independence. In addition, a profit and loss account must be available so that the creditworthiness can be checked.

Thus, it can be seen how high the income is and whether the self-employed works with loss or profit. From this it can also be concluded at the end how high the loan amount will be and how high the monthly charges for the repayment are. The self-employment should last at least one year, so that sufficient information about the independence is available. Furthermore, credit institutions often demand the income tax returns and the latest bank statements. It would be advantageous here if a self-employed person can apply for the bridging loan for self-employed persons at his / her house bank, since the bank already knows the applicant and can see the expenditure and income more quickly.

Requirements and limitations of a bridging loan for the self-employed

Requirements and limitations of a bridging loan for the self-employed

In the case of a bridging loan for the self-employed, it is important that there are no entries in the private credit, as this will be detrimental to the self-employment bridging loan. The credit rating decreases and in case of doubt it can even happen that the bank will reject the loan application. In such a case, other collateral, a guarantor or a real estate, should be present, so that the credit chances increase again. Often, a bridging loan for the self-employed is only given if the loan amount is used for private purposes. Thus, the loan should not finance any operational investments. For such cases, there are business loans that are offered on favorable terms. The installments must be redeemed from own funds. Throughout the repayment period, the monthly installments will not change, so you can expect fixed expenses.

Leave a Reply

Your email address will not be published. Required fields are marked *