The terms of an installment loan for freelancers are similar to those for normal workers. Nevertheless, this loan is actually a little more difficult to obtain for the occupational group concerned, since unlike employees, on the one hand there is no protection against dismissal and on the other hand income can be very variable.
So while the lender can plan through the salary of an employee, worker or even civil servant, the situation with the freelancer is a little different. Its income is strongly linked to its current order situation, which is why there can always be months in which income varies greatly or is noticeably lower.
If the installments then set the rates too high for freelancers, in the worst case they can no longer be paid on time, in full and on time. The result would be high reminder costs for the freelancer, but possibly also a complete default. This must be avoided by the bank, since the bank naturally makes money with the loans issued and does not want to lose them.
Individual case is crucial
As always with borrowing, there can never be a 100% guarantee in advance whether a loan will actually be approved by the bank or not. For freelancers, however, the situation regarding borrowing is much more individual, because here it is not only the income that counts, but also what profession it is told about, how long the freelance work has been successfully carried out and, of course, the projections for the next ones Years.
Accordingly, a freelancer has to weigh considerably more for his installment loan than is the case with a conventional employee. In this way, the bank tries to determine the applicant’s creditworthiness as best as possible without placing the freelancers at a disadvantage in borrowing.
Whether the installment loan is ultimately issued to freelancers also depends on the applicant’s Credit Bureau entry. If the internal rating in Credit Bureau is positive, the prospective borrower can at least communicate that he has always had a precise overview of his financial situation in the past.
The right choice of bank
As a rule, all direct banks also offer installment loans for freelancers, but their conditions can vary enormously. Freelancers should therefore always consult a credit comparison in advance in order to find out which credit institution has the highest acceptance rate and the lowest interest rate.
On the one hand, this ensures the profitability of the loan and, as far as possible, also prevents cancellations and lost time. The loan comparison is free and neutral for freelancers as well as for employees and / or civil servants. If a bank with suitable conditions was found, the application can be forwarded to the bank directly via the computer.