The self-employed often find it more difficult to obtain a loan than other groups of people. The banks always ask for a lot of information and documents so that the credit default risk is very low. Especially for those who have just started their self-employment, banks often reject a loan with no credit rating for the self-employed.
In addition to a business evaluation, the applicant must also show the last account statements and have the private credit checker checked. Obtaining these important documents always takes a lot of time and cannot always be presented.
What are the options?
The self-employed have fundamentally a poorer credit rating than a permanent employee because there is no regular income. Profits fluctuate from month to month, so banks cannot tell if a loan can be repaid. Collateral should then always be available, which can be presented to the bank so that a loan can be taken out without credit for the self-employed.
For example, banks accept guarantees, life insurance or even motor vehicle letters. In the case of a guarantee, it must always be borne in mind that the guarantor has a regular income, i.e. is not self-employed. In addition, the income must be high enough that it can be attached in the event of a loan default.
Choose surety or life insurance as security?
It is not easy to find a guarantor for a loan with no credit rating for the self-employed, so that your own life insurance can also be deposited as security. This life insurance has to run for several years, because only then will it have a relatively high surrender value. This value must be at least as high as the loan amount that is taken up.
The last option is the , which can be taken as security. However, it should be borne in mind here that a vehicle is often important for the existence of a self-employed person. If there is a credit default, the vehicle is owned by the bank and there is a risk to its existence. So it should always be considered which security makes the most sense.