Where do you get a financing for the self-employed?

Anyone who dares to make the big leap into self-employment often takes a heavy burden on their shoulders. It really has its price to be your own boss. It is always easier for those who have taken enough time to plan. This is especially true for the financing of own projects, because problems can arise faster than expected. Banks are not always the best partners when it comes to financing for the self-employed: too insecure or no reserves that could serve as collateral.

What financing is always needed

What financing is always needed

Especially in the beginning, it is particularly difficult to get capital. Moreover, it is just the beginning time, in which most capital is needed. Since a self-employed person in this phase can not yet refer to many years of experience and constant sales figures, banks need proof at this point that the applicant has also given enough thought to his project.

These thoughts can be presented concretely in the form of a business plan. Here, the information is collected, the statements should be how your own company has to run once, what resources are needed and where they should come from. The latter concerns in particular the financial plan, to which special care is taken when assessing the project. Which sums are needed and how much capital is already available?

The Bank will scrutinize such a plan and point out directly to the applicant any gaps that may have been overlooked. With an innovative business idea alone, it is not yet done, and the How must be given enough attention. It is better to recognize errors in advance and not to receive financing for the self-employed than to have to ask in hindsight, how it can ever be repaid.

Funding for self-employment financing

Funding for self-employment financing

Even before the self-employed go to the bank, they should inform themselves about government subsidies and funding opportunities. In contrast to bank offers, this type of financing for the self-employed usually offers more favorable conditions, which is reflected above all in the interest rate. But grace-free start-up times over several years can be very important, because at this critical time, the young company is not burdened with interest and principal payments, which can achieve a stable cash flow and a stable position in the market.

This semi-public bank also grants low-interest loans to self-employed persons if the appropriate conditions are met. One of them is the business plan already mentioned above, from which a conscientious planning is to emerge. The applicant should also have a minimum of business knowledge, which can be demonstrated, for example, in the form of a completed business education or studies. In addition, start-up loans may not be used to restructure existing companies that have been operating on the market for some time at favorable interest rates.

Payday loan, whose maximum loan amount is 100,000 euros.

Payday loan, whose maximum loan amount is 100,000 euros.

Especially in comparison to bank loans, significantly more favorable conditions can be observed here, which is expressed above all in the effective interest rate of 5% on average. The condition is that this financing for self-employed is used to 100% for full acquisition. It must not be a sideline.

Financing for the self-employed, who have been active in the market for some time and need capital for new investments, also offers opportunities away from the banks. Here, the private loan should definitely be considered in more detail, since self-employed have much better prospects of success here.

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