A cheap loan for freelancers is not necessarily easy to find. For many banks, freelancers do not offer the collateral that they want for a loan. No fixed and regular income, no permanent employer and no guidelines on how the professional career of the freelancer could develop in the future.
As a freelancer, you have to prepare for a long odyssey if you want to take out a loan. As is well known, nothing is impossible and with a little patience and the creation of better conditions, a loan is also possible.
This is how a cheap loan for freelancers works
When it comes to granting a loan, the self-employed and freelancers are at the bottom of the list. It also becomes particularly difficult if the freelance work has not been carried out for a long time and therefore no balance sheets and plans for the next few years can be submitted. Because to be able to do this, the freelance existence has to be so advanced that it stands on relatively firm feet.
In spite of all this, as a freelancer you are primarily offered loans on the Internet. To speak of a cheap loan for freelancers here, however, would not be correct. Because these offers, which are usually formulated by credit intermediaries, are anything but cheap. They come with very high interest rates and conditions that are difficult to meet.
It is much better if you go to a bank and ask for a loan there. And with the right documents and arguments, even a cheap loan for freelancers can spring out of it.
Which documents freelancers have to submit when applying for a loan
In the first place is the BWA and a current income tax notice. As a freelancer, you have no pay slips and must prove your earnings in this way. Good bookkeeping, which the bank can request, can also have a positive impact on the bank’s decision. When applying for a loan, all documents should be complete. It doesn’t make a good impression if you go to the bank with incomplete or even incorrect documents. The first impression counts here. And this has to be as good as possible.
To accept help
The documents – no matter how meaningful they may be – are sometimes not sufficient for borrowing. The bank will ask for further collateral. Therefore it is good if you can name a guarantor. Even a second borrower who is not self-employed and does regular work cannot be a disadvantage.
Banks are looking for attachable funds or tangible items of value that can become the property of the bank if the loan is not paid. So before applying for a freelance loan, you should look very carefully at what you can offer the bank.