Now look at credit for self-employed in a short video!
In a short video we show you the situation or problem of many entrepreneurs, artisans, freelancers and small business owners! Many banks are picking on a loan or self-employed loans only the raisins and reject even good and long-standing companies.
Why is it that banks reject loans for the self-employed?
The reasons why a bank rejects a self-employed loan can have many causes. If we know your personal situation better then we can give you the right recommendations.
At this point we can only guess and give you a few examples based on our experience.
In the foreground for a bank is the credit default probability within one year in the case of a credit decision. In order to determine this loan default probability for a self-employed loan, some values are required about the company and the owner / managing director. This is not a problem for medium-sized and larger companies because these companies are prepared for meaningful business concepts in marketing and controlling.
Corporate concept for small business in corporate finance
And we know what matters in a bank conversation. Therefore, during the credit counseling for self-employed, we create the important points that a bank wants to see in order to assess a loan default probability as positively as possible. But again and again we see that entrepreneurs with the bad balance sheet or financial statements under their arms and the good ideas in their heads go to the bank. The banker makes a few notes about the company, but does not have a good corporate concept, which he can present to his boss in a positive credit decision. And most of all, when it comes to a loan for self-employed “tips on the button”, banks prefer to refuse funding.
It is different when the bank is presented with a coherent corporate concept with the most important data that a bank wants to see in the case of a self-employed loan! A good corporate concept does not include lengthy novels, but short but “crisp” facts. And that is often difficult for many small businesses. But no problem, there is also a credit counseling for the self-employed, which is promoted by the BAFA with a consulting cost subsidy of 50% to 90%.
Strategy for bank talk in a corporate loan
No emotions at the bank discussion for entrepreneurs! The biggest danger for an entrepreneur at a bank meeting is to give the banker the right opinion! Then many entrepreneurs feel better in the short term, but have paved the way for a positive credit decision.
With a good corporate concept, you have a guide, investment plan, planning the source of funds on a loan and can rely on positive facts instead of talking about negative emotions!
In a corporate loan, there are many alternatives to the house bank
What to do if you have managed the bank conversation and the house bank has rejected the loan? In this case, there are two options for small businesses and companies for a loan: Either we look for a new house bank with you or we use alternative credit offers that are now also available for companies, business start-ups, craftsmen and freelancers.
With a new house bank, traders have the advantage that the banker focuses more on the future of the company and the market. How is the company positioned, what strengths or competitive advantages exist in a corporate loan. On the other hand, most bankers in a house bank are more concerned with the past and have long been remembering possible less-than-good times for the company.
And a new house bank is also interested in new customers and also makes more effort to win over a customer. And it also takes into account the proposed state subsidies and loans from KfW Bank or a development bank of the federal states. An old house bank thinks otherwise with a loan for self-employed: It has the enterprise mostly for many years and wants to further “manage” it. In this case, then increasing the current account credit is a worthwhile business for the bank, bank or savings bank. In a credit counseling we recommend the rescheduling of a more expensive current account overdraft for the self-employed.
Alternative loan financing for companies
Entrepreneurs and especially small entrepreneurs have a hard time getting a corporate loan without income and Schufa entry. Most or almost all banks reject their loan applications! In the meantime, even a loan for self-employed people has a lively credit market via credit marketplaces such as crowdfunding or crowdinvesting and personal loans from private individuals.
These forms of financing focus on the project and the opportunities a company can derive from it. But also in this case the reliability of a punctual loan repayment and the achievement of the capital service is in the foreground. Because every lender wants to have his borrowed money back on time!