The self-employed and freelancers mostly have the same wishes as employees or civil servants. In contrast to the first group of people, however, they often face the problem that it is very difficult to obtain a personal installment or consumer loan. Debt restructuring for the self-employed is also not easy. Even if the self-employed has already taken out several loans and pays the installments on a regular basis, the banks will not only check the business, but also the private creditworthiness very carefully.
Debt for the self-employed – the prerequisites
The most important prerequisite for debt restructuring is a positive credit bureau information. In addition, the income should be sufficiently high and very secure. This is precisely where the problems arise for many self-employed and freelancers. Your income is often not the same, but is subject to more or less strong fluctuations. This applies even if the independence has existed for several years and a fixed customer base is available.
Unforeseen events such as defaulting customers or the general economic situation can always thwart the entrepreneur’s plans and sometimes overturn financial planning. Therefore, before granting a loan, the bank will check very carefully whether the self-employed person really fulfills the requirements to be able to pay regular loan installments. If necessary, additional security or a guarantee must be proven.
Debt for the self-employed – the conditions
Debt restructuring for the self-employed only makes sense if costs can be saved and / or several loans can be combined. Even if the interest on a new loan is often significantly lower than that on an older loan, every self-employed person should consider that early repayment penalties or processing fees may be due for the repayment of the old loan. Appropriate measures should only be taken after all costs have been deducted and it is certain that debt restructuring will bring financial benefits for the self-employed. A credit comparison on the Internet can provide the necessary clarity here.
A private installment or consumer loan is usually freely available. However, this does not mean that the self-employed can also make business investments. Special business loans are required for this. A debt rescheduling need not be limited to an installment loan. In particular, the overdraft facility on a private checking account, where debit interest rates are often very high, is ideal for rescheduling.
In this case, the overdraft facility would be offset by the installment loan, which would then have to be repaid in regular monthly installments over a precisely defined term. Especially for the self-employed, it is advisable not to set these rates too high, but rather somewhat lower. This leaves enough room for unforeseen events.