Self-employed people who are looking for an installment loan do not find it easy to find a suitable lender. They also need to be prepared to provide different credit assessment documents than employees. This will usually be the BWA (business accounting), the last tax return and a current income statement.
Compare credit for self-employed with BWA
Not every local or foreign bank issues an installment loan to a self-employed person. For this reason, it can take a little longer to find a suitable lender. Nevertheless, it would be advisable not to access the first best offer, but to compare different offers.
In addition to the BWA, a profit and loss account, an income surplus account or a tax return can be requested from the bank. In addition, regular income must be recorded in the business account or in the private checking account. The credit rating information should also be in order. If all requirements are met, the loan for self-employed persons with a BWA will be approved within a very short time and paid to the borrower.
Every self-employed person should be aware that the monthly repayment installments for a loan for self-employed persons with a BWA must be paid on a regular basis, as is the case for an installment or consumer loan for employees. The bank cannot take any account of fluctuating or completely missing income. Those who have justified doubts whether they are able to do so due to their financial situation should refrain from borrowing and look for other alternatives instead.
The length of the term, the amount of interest and the monthly repayment rates, as well as other important factors, are set out in the loan agreement. It must be drawn up in writing and signed by both contracting parties. Often, the lenders grant their customers the right to repay the loan for the self-employed with BWA in whole or in part. This procedure is particularly useful if there is high income or if the self-employed person receives a tax payment.
There are numerous reasons why a person might need a loan. Sometimes, it is actually the only way to resolve problems. That is why it would have been unfair to leave self employed people without the possibility to use it.