Many people who are self-employed or self-employed sometimes face financial constraints. There can be several reasons for this and is by no means just a problem of the beginning.
This is how you get a loan
Later, too, it can always happen that a customer does not pay or that a hoped-for order is not forthcoming. In order to be able to maintain operations and pay all costs, it will be urgently necessary to use your own savings or to take out a bridging loan for the self-employed. Such a loan differs from a normal installment loan for employees or civil servants in a number of essential ways.
Requirements for a bridging loan for the self-employed
Even though it is well known that many self-employed people may experience minor or major financial difficulties in the course of their work, this does not mean that a bank will grant a bridging loan to self-employed persons without any collateral.
An essential point is an impeccable Credit Bureau information. If there are any negative entries there, this can quickly lead to a loan application having to be rejected, especially for the self-employed. If income is insufficient or fluctuates too much, it may be necessary to obtain additional collateral or to request a surety loan for the self-employed.
Conditions for a bridging loan for the self-employed
A bridging loan for the self-employed is usually characterized by a very short term, which is often only a few months. The main reason for this is that a financial bottleneck is resolved relatively quickly in most cases and the loan can then be repaid accordingly. Only when the financial difficulties persist and there is no improvement in sight should the self-employed person or freelancer seriously consider whether his job still has a future or whether it would be better to pull the emergency brake in time and look for alternatives to self-employment ,
Business and personal loans
For the banks, it makes a huge difference whether the self-employed or freelancer urgently needs money for professional or private purposes. In the early days in particular, he could also resort to various corporate loans or support programs that would otherwise not be available to him or would only be available to a very limited extent. This includes, for example, the Lite Lender corporate loan, which may only be used for business investments.
Lite Lender will provide further information on this loan on request. If you need a bridging loan for the self-employed that you want to use for private purposes, it is usually difficult to find a suitable lender. This is primarily due to the fact that most banks only give their personal loans to employees and are very skeptical of the self-employed and freelancers.