Cash credit for the self-employed – short-term cash procurement is sometimes unavoidable. Unfortunately, the loan request cannot be implemented at any credit institution. Self-employment scares off many potential lenders. The article explains more about opportunities and risks.
Cash advance for self-employed – problem analysis
The cash credit for the self-employed does not fail due to the cash payment of the loan. Almost every lender doesn’t care which way the borrower wants to get his money. The transfer is usual, but of course it can also be paid out by post. The biggest problem is the form of work income. The income from self-employment is considered insecure by practically all lenders. Especially the house banks, which should actually guarantee the credit supply for the local companies, have a hard time.
A normal local commercial bank is not geared towards self-employment when it comes to lending. Credit risk is often overrated. This longstanding development has been given a tailwind by the euro crisis. The agreements of the US finance ministers, also called Basel contracts, tie the banks’ hands.
Excess credit security is designed to protect credit institutions from bad loans. The loan approval is also made more difficult by the training of loan officers. They can precisely rate a loan application from an employee. If a BWA is to provide the basic data for credit valuation, it will quickly skid. They move on unknown territory and refuse.
Accept credit limit restrictions
Alternative providers can generally be more positive about a loan approval. However, the cash credit for the self-employed still lacks the most important prerequisites for lending. – Ensuring repayment ability and capital security. This problem can only be solved with high-quality property security and a solvent co-applicant or guarantor. Credit opportunities are now available at least to a limited extent.
Another problem when looking for a loan is the possible amount of a loan. If the loan is to be used for a business investment, it is usually a larger sum. Cash loans are mainly advertised by credit intermediaries as loans without Schufa.
The possible loan amount of such a loan, usually a maximum of around 3,500 USD, is rarely sufficient for a business investment. The next problem to be solved focuses on the amount of the loan. Special providers for corporate and private loans are eligible.
Personal loan for self-employment
Credit from private donors is booming. The difficult credit situation of many private households and small companies has caused this. Investors are also added daily. The bad investment situation makes the savings book a “money-wiping machine”.
The preliminary credit check for corporate loans is a relatively new addition to the range of platforms for personal loans. A special tool records all relevant data and checks the credit opportunities. If the test program gives the “green light”, there are good chances for a loan.
This new procedure has been well received by investors. You can now be sure that a loan default is unlikely. Depending on the collateral, the limits on the amount of the loan are significantly increased. Up to 50,000 USD can be realistic. Only the cash payment would have to be agreed with the settlement bank, then the cash credit for the self-employed from private is within reach.