Freelancers, like other consumers, need a loan to pay important bills or to make purchases. The loan can be used for your own business, but also for private use. In doing so, differences are made in the loans for both areas, because here the requirements for the loan vary.
Home loan – loan for private purposes
If the applicant wants to borrow a freelance loan for private purposes, the borrower is seen like any other consumer. To do this, he must present his bank statements to the bank and proof of his earnings. In addition, the bank will examine credit bureau when applying and determine the creditworthiness. It is important that there are no negative entries, otherwise the credit rating will be rated worse than that of a clean credit bureau and once these documents have been checked, the bank will approve or reject a loan for freelancers.
Business credit – expect more effort
With a loan for freelancers for business purposes, the applicant must expect more effort. So a profit and loss account must be submitted and the income tax notices. These must be checked with the credit bureau and the account statements. This loan is earmarked so that it can only be used for business. With a private loan, there is no purpose. If the loan is used for a vehicle, a loan application can also be made to a car dealership.
All documents are checked as with the house bank, however discounts can be expected. Car banks often grant a loan to freelancers for a specific vehicle model. However, if the loan amount comes from the house bank, the freelancer can act as a cash payer and can often also hope for discounts. Another advantage of the house bank is that it does not have to rely on a specific car model at the dealership.
Bad creditworthiness – offer collateral
Banks want to have collateral so that a loan can be granted if they have a bad credit rating or if they see an excessive credit default risk. Known collateral includes guarantors that can secure the loan. Life insurance can also be used. This is completely normal, because life insurance can optimally secure the loan and protects both the bank and the borrower. The insurance is chosen so that it has the same term as the loan for freelancers.