A cheap loan for the self-employed or freelancer is usually very difficult to find. Most banks refuse to lend to the self-employed. This is often justified by the higher risk of default. If a bank offers for the self-employed, it is usually associated with high interest rates. Collateral for lending is also often required.
Banks that offer a loan to the self-employed
There are some banks that offer cheaper credit for the self-employed. The respective conditions and interest rates are very different. For this reason, you should definitely carry out a precise comparison before completing it. Always compare the effective annual interest rate.
In addition to the interest rate, this already includes important costs such as processing fees and commissions. When applying, you submit the last two income tax notices available instead of proof of salary. In addition, depending on the provider, a current income statement and a business evaluation is required.
Alternative to bank credit
A cheap loan for the self-employed is alternatively also possible as a loan from private individuals. Here you get the loan not from a bank but from private investors. This makes processing much less bureaucratic than a bank loan. There are various Internet portals that mediate such a personal loan. To do this, create a profile in which you can explain the reason for the borrowing and your personal situation. In addition, you can also directly specify the desired loan amount, term and the effective annual interest.
If you can convince enough donors with your profile, you will receive the loan amount through the mediating portal. You have no direct contact with the donors. The monthly installments are also collected from the relevant portal and distributed to the donors. You will be charged a corresponding placement fee for the placement.