Getting a loan for a freelancer is not easy

Basically, getting a loan for a freelancer is not easy. Many banks or savings banks shy away from the risk associated with an unsafe and sometimes constantly fluctuating income for freelancers. This often leads to the fact that they are very hesitant or do not grant a loan to freelancers. The situation is particularly difficult if for some reason there are negative Credit bureau entries, the cause of which cannot be eliminated in the short or medium term.

Requirements

Requirements

If you want to get a loan as a freelancer, you have to prove an income that can cover not only the personal and family livelihood, but also the loan installments. If there are legitimate doubts, the bank will reject the loan application. Otherwise, they would have no certainty that they would get their money back properly and on time. If a suitable branch or direct bank is found that would be ready to grant a loan, the freelancer would not only have to submit an application, but also have to enclose various documents that the bank can use to easily check whether the requirements for a loan are met .

These documents could include not only the bank statements of the last three months and the last income tax assessments, but also the profit and loss account or the income surplus account. If necessary, it may also be necessary to provide additional collateral, a second applicant or a guarantor. This could often lead to the fact that a loan for freelancers, which would otherwise have to be rejected, can still be approved.

Application, approval and repayment

Application, approval and repayment

Similar to any other loan, a freelance loan is paid out within a few hours or days. The loan amount is usually freely available. In this context, it is important to ensure that a private loan can only be used for private purposes and a business loan can only be used for business purposes. The banks attach great importance to an appropriate separation.

If a loan is used for purposes other than that of the freelancer, it can be terminated by the bank with immediate effect. There are several reasons why a freelancer needs a personal loan. These reasons often differ only slightly from the reasons that also motivate a worker to take out a personal loan. For example, various consumer wishes can be satisfied, vacations can be financed or larger purchases can be made.

A loan for freelancers must be repaid in monthly installments. These rates remain the same throughout the term. The question of whether and how much the income of the freelancer fluctuates does not matter at all. For this reason, every freelancer should critically question whether he really sees himself able to pay regular loan installments over a period of several months or several years. Otherwise, he should prefer to refrain from borrowing and wait until the financial situation has improved and largely stabilized.