The loan for self-employment is sought after, but not always easy to obtain. Solid credit opportunities exist for company founders. Free financing and investment loans are more difficult if you are self-employed. You can find out which credit method could be available to you in the article.
Self-employed credit – requesting government support
The credit for self-employment does not necessarily have to be secured on your own. The Demo lender bank (DLB) offers credit solutions for the start-up and continued existence. The process is initiated via any commercial bank. The future entrepreneur should be well prepared for the discussion with the clerk. In preparation, a market analysis could already shed light on the future prospects of the business idea.
The investment plan, the liquidity plan and the profitability plan are then to be presented to the clerk. The plans should be carefully drawn up because they form the basis for the entire further process. Those who are still inexperienced in dealing with the procedures should attend a start-up coaching. Application errors and problems at the bank can be avoided in advance.
DLB secures most of the investment against the commercial bank. Nevertheless, a small portion of the risk remains that is not secured by DLB. The executing bank would like to have collateral from the company founder.
As a reward for the effort, a loan of up to 100,000 USD is possible at dreamlike interest and repayment terms. In the first year, the loan is even free of repayment. A visit to the DLB website is definitely worthwhile.
It is of course up to you whether you later apply for the ERP start-up loan through your house bank or contact one of the direct providers displayed.
Entrepreneur loan without government funding
A credit for self-employment does not necessarily have to be government-sponsored in order to be approved. Very low-cost credit opportunities already arise from ongoing business operations. Suppliers’ credit is particularly effective. Many wholesalers can work with payment terms after just a few orders. Between 30 and 90 days purely net are not unusual goals. In addition, some manufacturers offer commission sales, especially when a product is launched on the market. Commission goods only have to be paid for if they have been sold.
Dead capital through pre-financed warehousing is thus eliminated. The business risk is also significantly reduced. If the product does not go well, the commissioner picks up the goods and the case is settled.
Orders that have already been executed can be immediately converted to money at a factoring bank, provided the customer’s creditworthiness. Except for a small remaining amount and the commission, the open invoice amount is paid out immediately.
Personal loan for the self-employed
Bank credit is difficult to obtain as a self-employed person. The credit guidelines are mostly not designed for self-employment. The required security can often not be provided by the entrepreneur.
The way out could be a loan for self-employment from private. Entrepreneurs are increasingly turning to the large portals for personal loans. They find financing for their business idea and necessary investment capital – from private – on fair terms.