When financial institutions allow self-employed persons as credit customers, they often require professional independence that has existed for at least two years. Only a few banks grant privately arranged loans if they are less self-employed, but young companies have an advantage when it comes to initiating borrowing. The separation between private and company borrowing at the start of self-employment makes sense for tax and organizational reasons.
Borrowing for the self-employed under 2 years for business purposes
In the event of a business request, cheap promotional loans are available as a loan for self-employed persons under 2 years of professional independence. Most promotional programs for young entrepreneurs are provided by Best Bank; in some areas such as agricultural businesses, special banks related to the respective commercial bank are responsible for the discounted financing. Furthermore, the guarantee banks of the individual countries offer newly established companies a loan guarantee, so that they can take out an operationally induced loan for self-employed persons under 2 years of operation at commercial banks.
If no promotional loans are possible, commercial banks assess the creditworthiness of young companies based on the prospects of success of the measure to be financed. A carefully drawn up business plan with realistic approaches to the expected start-up losses and the later conceivable profits is necessary for every operational loan.
Borrowing for the self-employed under the age of 2 for private purposes
Before completing a loan order, applicants use the published terms and conditions to check whether the selected financial institution grants a loan to self-employed persons under 2 years of professional independence. This is less the case with banks that specifically advertise private customers than with savings banks and Volksbanks, although the self-employed person is also legally considered a private individual when borrowing for personal purposes. For this reason, he can also take out the desired loan for a personal use via a website for loan brokerage between private individuals.
The lenders registered there are aware of the reluctance of many commercial banks to lend to the self-employed, so that for social reasons they prefer to receive the inquiries they make. In principle, an immediate loan without proof of income can be taken out as a loan for self-employed persons under 2 years of professional independence, whereby all questions asked in the loan application must be answered honestly. In many cases, lending without proof of salary is also given to applicants who have been self-employed for less than 2 years.