Remortgage loan for self-employed rejected

A loan debt for self-employed was rejected

A loan debt for self-employed was rejected

The bank often rejects a debt restructuring loan for the self-employed, if currently other loans have not been fully paid off. In this case, the best way to merge existing loans into a new loan is called loan debt. In the case of a loan debt restructuring, the existing liabilities are terminated and rescheduled with a new loan. If you have a low monthly income then you should provide collateral in the form of real estate or assets when applying for a loan. For a loan commitment from the bank, it is beneficial to have a second borrower with a good credit rating.

If all this is not there, then we help with a consultation. For self-employed persons can apply for a guarantee from the Bürgschaftsbank if the collateral is insufficient. Talk to us, we will gladly help you with a debt loan, then you can save money most of the time!

Contents Debt rescheduling Credit for self-employed rejecteda

Contents Debt rescheduling Credit for self-employed rejecteda

  1. A loan debt for self-employed was rejected
  2. The most common reasons why a debt restructuring loan for the self-employed is rejected
  3. Repurposing expensive loans while saving money
  4. Remortgage loan for self-employed

The most common reasons why a debt restructuring loan for the self-employed is rejected

The most common reasons why a debt restructuring loan for the self-employed is rejected

A loan remission for self-employed was rejected, this can have many reasons. Here are the most common reasons:

  • Monthly income too low, not attachable
  • Current account is overdrawn, return debits are available, bookings by collection agencies
  • Negative Schufa entry
  • Employment is temporary, self-employment
  • The age of the borrower

A negative Schufa entry is the most common reason for a credit rejection.

Repurposing expensive loans while saving money

Repurposing expensive loans while saving money

By rescheduling loans, you can save money every month with a loan repayment and low interest rates. With a rescheduling you can additionally increase the loan with a follow-up financing. A credit summary, also called rescheduling, can significantly reduce monthly loan rates. Longer loan periods make the monthly burden more bearable. In a credit summary, you should make sure that this is only done when a loan repayment, the monthly burden is reduced and you still save costs. For some loans, the notice period must be observed, because if a loan is terminated, the notice period should be considered.

Remortgage loan for self-employed

Remortgage loan for self-employed

Is debt restructuring an alternative to a credit rejection? Yes, if the loan application is rejected because of several existing loan agreements. With a rescheduling of several loans in a loan, the borrower benefits from lower monthly loan installments through cheaper interest rates and longer repayment terms. When rescheduling, it is important to specify the exact repurchase amounts, terms and monthly installments. In addition, rescheduling requires the account numbers and bank codes of the loans to be rescheduled. If you also need additional cash, the debt rescheduling amount may be greater than the total of the existing loans.

Loan for self-employed in Berlin

Credit for self-employed in Berlin

Credit for self-employed in Berlin

Here you will find the right loan for self-employed in Berlin . No matter how long you have been self-employed in Berlin. There is a loan for self-employed in Berlin for small and medium-sized companies. There are some loans that are suitable for the self-employed, such as the entrepreneur loan from Intrasavings bank, the SME loan from the investment bank, the working capital loan for current account debt and the start-up loan in Berlin.

In the first 5 years after setting up a business, self-employed persons can apply for a microcredit up to 25,000 euros in Berlin without a house bank and without collateral.

A loan for self-employed in Berlin

A loan for self-employed in Berlin

Credit advice, if banks reject!

  • favorable government loans by Intrasavings bank with indemnity
  • Rescheduling expensive current account credit
  • Order pre-financing and increase warehouse
  • Guarantee of the guarantee bank if the collateral is too low
  • Capital raising for other purposes
  • Consulting cost subsidy 50% to 80%

Similar contributions for a loan for self-employed in Berlin

Similar contributions for a loan for self-employed in Berlin

  • Credit for self-employed in Brandenburg
  • Current account credit for the self-employed
  • Self-employed credit without private credit
  • Credit for self-employed

Table of contents Credit for the self-employed in Berlin

  1. Credit for self-employed in Berlin
  2. Entrepreneur loan for self-employed in Berlin from Intrasavings bank
  3. SME loan for self-employed by Investitionsbank Berlin
  4. Advantages of government loans from Intrasavings bank for the self-employed

Entrepreneur loan for self-employed in Berlin from Intrasavings bank

Entrepreneur loan for self-employed in Berlin from Intrasavings bank

In Berlin, Intrasavings bank offers self-employed persons and craftsmen a business loan with state-subsidized conditions. For investments, Intrasavings bank grants a liability exemption of up to 80 percent. This will facilitate funding for some banks.

The KfW start-up money with particularly favorable conditions is interesting for business start-ups. For investments and resources, Intrasavings bank finances up to € 100,000.

SME loan for self-employed by Investitionsbank Berlin

SME loan for self-employed by Investitionsbank Berlin

Investitionsbank Berlin supports KfW business loans in order to promote the regional economy. In addition, the Investitionsbank Berlin offers cheap loans for the self-employed and craftsmen:

  • State guarantees with low collateral
  • Microcredit for small businesses
  • Loan Fund for Small and Medium Loans for Investments and Resources
  • IBB growth program for SMEs with high financing requirements

There are some requirements that self-employed people have to meet in order to apply for a loan. However, if the collateral is insufficient, the Bürgschaftsbank of the Investitionsbank Berlin offers a guarantee.

Advantages of government loans from Intrasavings bank for the self-employed

Advantages of government loans from Intrasavings bank for the self-employed

For self-employed, a loan from Intrasavings bank is subsidized by favorable lending rates and a release from liability. Intrasavings bank also offers self-employed persons long-term fixed interest rates and grace-free start-up years for loans, which are of particular interest to self-employed investors.

Mini loan and short term loan: worth knowing about these types of loans!

Mini loan and short term loan – all one and the same? A question that seems justified. Because these types of credit are not really common until now. It is also not easy to find clear definitions of these two types of loans. Thus, not infrequently, the microcredit is equated with the mini loan and then somehow mixed with the microcredit. This quickly gives the impression that all of these terms are basically just “old wine” in “new hoses” titled. So what applies to the mini loan applies equally to the short-term loan.

What does short-term credit actually mean? Sure – you get a short-term loan for a “short time”. But how is “short time” defined? 5 days, 15 days, 30 days, 60 days or even longer? Maybe even completely individual? Just as a credit customer just needs it? The fact is, there are simply no really common definitions of these types of loans. Basically, each provider of a mini loan or short term loan sets its own detail definition of the two types of loans. Exactly as needed for the practical implementation of your own business model.

Mini loan and short term credit – the basic understanding

Mini loan and short term credit - the basic understanding

One, however, all have credit in common and this also applies to the mini loan and the short-term loan. Because these loans are loans like everyone else. This means that a financial institution awards a certain amount of binding conditions over a defined term to a borrower. In addition, the legal guidelines from the credit system also apply to a mini loan or short-term loan.

The general differences to traditional credit

The general differences to traditional credit

If you have not dealt with the matter of mini credit and short-term credit until now, you may want to briefly explain the most important differences between these two types of loan compared to conventional installment credit.

Difference characteristic number 1 in the case of mini credit / short-term credit is the fact that the loan must be repaid to the lender after the expiry of the agreed repayment term in an amount plus accrued interest. Whether this happens after 5 days or even after 60 days depends on the mini credit provider.

Difference characteristic number 2 is the fact that with the mini-loans the interest rates are clearly higher in comparison to an on-line credit or also the traditional branch loan. Although some mini loan providers have lately lowered the interest rate on their own loan offer significantly, but the interest rate differential on the individual mini loan offers is still immense.

What are the loan rates for this form of credit?

What are the loan rates for this form of credit?

The effective annual mini-credit interest rates of the loans offered here vary between 7.95% and 13.90% . This means that you would have to repay purely computationally with a borrowing of 100 € and a term of 1 year at 7.95% effective annual interest at the end of the year 107.95 €. However, as short-term loans and loans with terms of less than one year are involved, interest costs are even lower. In plain language, the factor “interest costs” in a mini loan and short-term credit actually hardly matters. Even if this is not a small number of so-called experts in the credit market looks very different. The fact is that a realistic estimate of the interest cost of a short-term loan looks like this:

  • Mini loan over 300 €
  • Duration 30 days
  • Interest rate eff. pa = 7.95% at the cheapest provider Viloan

brings as result only once 1.89 euro as interest burden! Who dubs such an amount as high, should once again lead the meaning and purpose of a short-term credit to heart. But the simple comparison with an unregulated and often much more expensive credit line could be helpful here.

The mini loan: More expensive than a conventional installment loan?

The mini loan: More expensive than a conventional installment loan?

A question that can not be answered with a clear “yes” let alone a “no” . The reason for this lies in a simple rule in the credit system. It is entirely up to the banks to decide whether or not to link a loan with regard to its interest rate structure to the creditworthiness of a credit customer. This is called credit-dependent or even credit-independent interest rate . In simple terms, the more burdensome the creditworthiness of a customer is, the higher the interest rate on a loan can be. Which can often be synonymous with having to accept an interest rate of 8%, 9% and more for a “normal” installment loan. If, on the other hand, one deviates from a loan that does not use a credit rating-dependent interest rate, it can happen that even the smallest private credit characteristics lead to a rejection of the loan application. So the question after “What is more expensive?” Can only be answered individually.

One thing is certain: Due to the short maturity of a mini loan and a short-term loan, the interest factor is fortunately hardly significant.

Cost mini credit vs. Cost of Posting Credit: What’s Better?

Cost mini credit vs. Cost of Posting Credit: What

Again, this is not a question that can be answered flat with a “yes” or “no”. Again, the answer ultimately lies in the interest rate that is offered to you in the case of a credit line. At present, the reality is that it opens a range of 0 percent to well over 14 percent. This results in the following situation: If the interest rate for a credit line at the own bank below 7.95%, then the Dispo is clearly the better choice. On the other hand, if the discount rate is significantly higher than the 7.95% demanded by Viloan, then the Viloan mini loan is clearly the wiser choice. In this respect, the decision is always to look closely at the interest rate for the credit line.

Another point to keep in mind is the maximum loan amount. In the mini loan, the maximum loan amount is usually reached at 600 €. In contrast, the credit line is often 2-3 times the monthly incoming salary. So when it comes to bridging a major financial bottleneck (more than € 600), the credit line has the advantage. However, it must be clearly stated that a cheap online loan would be the better alternative compared to the credit line here.

What role does private credit play in mini-credit as well as in terms of credit?

Last but not least, the topic of private credit should also be addressed. It can be said without a doubt that with a burdened private credit the credit line is a utopia. Consequently, the slightest flaw in your own credit rating means that you do not receive a credit line. Even if, then with an interest rate well over 10%. Where the mini loan the private credit plays a minor role in most mini loan providers. Consequently, in most cases, a short-term loan is also awarded to a private credit with a light to medium burden. From the point of view, therefore, a clear “pro” for the mini loan and short-term loan

When is a mini loan / short term loan in question?

When is a mini loan / short term loan in question?

A mini-loan is basically always in question if the following points are given:

  • Alternative financial reserves are not available
  • your own credit line has an interest rate higher 8 percent per annum
  • There is no need to borrow more than 600 €
  • Credit is not available
  • the own private credit has slight negative characteristics

In addition, the mini loan is considered a credit alternative, if it is clear that the use of one’s own disbursement credit is not always associated with a regular repayment. The mini loan does not offer the possibility of postponing the eradication. In this respect, a loose repayment mentality can NOT lead to a continuous debt build-up in this type of loan. However, it also follows that a mini loan should only be taken if it is certain that it will be repayable on the due date as well as interest.

So fast and easy it goes to the mini-loan and short-term loan

So fast and easy it goes to the mini-loan and short-term loan

The requirement of a mini-credit / short-term loan is a simple, in a few steps feasible process. How easy it is to receive a mini loan is shown in our infographic