A self-employed loan is a special loan that is used to finance a business. This special loan should not be confused with a loan for the self-employed. In order to get the loan approved, the applicant must prepare well.
What do you need for the loan application?
A loan for self-employment is not part of the normal installment loans because it is used to finance a business’s start-up. The financial institutions grant loans as an investment. They only approve a loan if they can achieve a certain minimum return and the risk of a loan default is low. As a borrower, you must therefore convince the bank that your planned business has a chance of success.
The best way to do this is with a business plan. In this document, you not only present your company concept, but also provide specific facts and figures. These affect, among other things, your financing needs, i.e. the amount of the loan required as well as the expected sales and income. From this, the bank sees how you can repay the loan. Of course, you cannot think of any imaginary numbers, but all information must be well-founded. You need professional help for this.
How do you get a loan for self employment?
You can get help from several positions. It is primarily about creating a professional business plan. To do this, they can contact the Labor Agency, the Chamber of Commerce and Industry or the Chamber of Crafts, for example. There you can also find out about promotional measures that you may have access to. Funding measures can be awarded by the EU, the federal government, the states and even local authorities. They not only consist of loans, but are also offered in the form of guarantees. The first point of contact for a loan for self-employment is your house bank.
They know you and your financial situation best. If you manage to convince the bank of your business idea with your business plan. Your loan application will be even more convincing if you are prepared to provide the bank with collateral. The spouse’s regular income can also increase the chances of getting the loan, provided that he or she is willing to sign the application as a second borrower.