Which Loan and Loan Company Should You Choose?

Bank cash loan

Bank cash loan

A sudden situation through which we reach for a popular moment ? It is an increasingly common phenomenon on the market. However, when we talk about bigger expenses, our solution becomes a bank cash loan. Currently, there are many banking and non-banking institutions on the market, which is why increasingly their choice literally makes you dizzy.

One of the proposals are traditional online loans, which are a very convenient option for many customers. The only requirement is to submit an appropriate form on the website that the company will consider. Sometimes, the requirement is to show additional documents, such as a statement of earned income or a copy of your ID card. After a positive consideration, we can very well receive the agreed amount on the given bank account. It is a very interesting alternative, thanks to which we will suddenly satisfy financial needs. Most institutions also offer promotions in the form of a free first loan. Despite many advantages, it is worth bearing in mind that it is a financial commitment that we undertake to make in a month.

The way to satisfy all your financial needs is also to use the help of a bank, which in turn offers lower interest rates and a much longer repayment period. Here, the procedure is a bit longer and involves the presentation of all income documents, as well as the assessment of creditworthiness. This is a good solution especially for people who need a large amount of cash for a given purpose, such as for example the purchase of real estate.

Dozens of non-bank institutions and the second as many banking institutions. Which of these options will be the best for us? This is a question that most potential borrowers are surely asking themselves.   An alternative might be using the online comparison engines available on various websites, which may be helpful in choosing the right institution and the offer it offers. But do they fully reflect the values ​​present in given institutions? An excellent solution is the form below where you must provide your details, amount and payment period, and we will help you choose the right company that will meet all financial problems at the lowest price. No hidden costs and different values. Check and see.

Do not get a loan for the self-employed what now?

If the self-employed get no credit – what now?

The most important step for a self-employed person in a loan rejection is asking for the reason why the loan was declined. In the next step, they should consider themselves as self-employed, where can I apply for a loan if the bank refuses? If the house bank refuses the loan, then you can rely on direct banks as a self-employed person. The direct banks check the credit rating and the monthly income and the private credit information play a significant role. In the article “Do not get a loan for self-employed what now?” We show self-employed persons which alternatives or which suggestions for improvement are possible for a loan application.

Contents get as a self-employed no credit – what now?

Contents get as a self-employed no credit - what now?

  1. If the self-employed get no credit – what now?
  2. Possibilities for loan financing despite credit rejection
  3. Alternative to bank loan – private loan platform
  4. The new trend on loan platforms are private lenders
  5. Reasons for a credit rejection

Possibilities for loan financing despite credit rejection

Possibilities for loan financing despite credit rejection

The opportunity for a loan financing can increase self-employed by specifying a second borrower or a guarantor. These persons should have no records and a regularly secured income in the private credit. If the collateral from the borrower should not be sufficient, then a guarantee can be requested through a guarantee bank. In the various federal states, a guarantee can also be applied for through a promotional bank for a loan. The self-employed can also apply for a loan on a loan platform on the Internet, since the acceptance guidelines are not as strict here as with a bank. The self-employed can also rely on the direct banks on the Internet.

Alternative to bank loan – private loan platform

Alternative to bank loan - private loan platform

The bank rejects the loan application for self-employed, then you have the option to look for alternatives to bank credit. In this case, there are private loan platforms such as auxmoney and smava on the Internet, which provide loans between individuals. Because on these credit platforms, not the banks decide on the award of the loan to self-employed but private financiers. The self-employed person presents himself and his concerns on the credit platform and enters the desired loan amount. When the desired loan amount is reached, the loan platform settles the loan. The borrower then transfers the loan installments to a partner bank, who then forwards the money to the individual lenders.

The new trend on loan platforms are private lenders

The new trend on loan platforms are private lenders

The new trend on credit platforms is private lenders. The concept of private lending is simple, as credit marketplaces provide borrowers and lenders with a dedicated platform on the Internet. For the lending here not only the numbers after the count, but also that the borrower receives better conditions by a good presentation of the loan project than by the house bank. A weak credit rating of the borrower can also be compensated by a good presentation of the loan project.

Reasons for a credit rejection

Reasons for a credit rejection

For a credit rejection, the most common reason for the self-employed is a negative private credit entry or lack of collateral. A good credit rating indicates whether the borrower can repay the monthly loan installments. Possible reasons for refusing a loan for the self-employed are:

  • Lack of collateral
  • Regular income not available
  • Negative private credit entry
  • Too low profit
  • Return debit on the checking account
  • No sales growth
  • No guarantor available
  • Self-employed is too indebted

Self-employed persons should always submit complete and correct documentation to the bank for a loan application in order to avoid a credit rejection.

Loans and subsidies for the self-employed

Loans and subsidies for the self-employed, craftsmen and freelancers

There are now over a thousand loans and grants for the self-employed. But who knows the right credit for his situation? And if self-employed make an application for a loan, then you should know the conditions for it, otherwise a loan from a bank is quickly rejected.

We have put together a personal credits and funding description for self-employed. The tail unit can be downloaded immediately for 39,90.

An excerpt can be found at personal loans and self-employment funding.

Personal loan for self-employed without bank

Personal loan for self-employed without bank

If there is insufficient income for the self-employed in the last two calendar years, self-employed persons are usually refused credit by their bank. But there are now many alternatives, how self-employed can finance properly without their house bank. In the personal loans and subsidies, we have listed several interesting options. And there is certainly also suitable for you as a self-employed offers.

Credit for self-employed without private credit information

Credit for self-employed without private credit information

A private credit entry is usually three years in the private credit, even if the demand has long been paid! But a private credit entry means for self-employed with a credit rejection. Many self-employed people are denied access to the credit market.

In our personal loans and subsidies for self-employed, we have also listed offers in which a private credit entry plays no role. Find out about our reader test.

Credit counseling for the self-employed

Credit counseling for the self-employed

As a small business owner, you are responsible and responsible for everything. And there is no such thing as a man who knows everything equally well. Because everyone has strengths and weaknesses. Mid-sized and larger companies use qualified managers in positions of responsibility. And what can the individual entrepreneur do?

The self-employed has as a consultant his tax adviser and bank consultant! And? Did these consultants help you?

Financial advice supported by the BAFA

Financial advice supported by the BAFA

Our advice is promoted by BAFA from 50% to 90% . We help you to solve the most important problems and get suitable loans. Even Intrasavings Bank recommends: In case of problems, self-employed should get an external consultant.

You can apply for a consulting grant for the following types:

  1. Start-up companies up to 3 years after founding (start-up)
  2. Companies from 3 years in the growth phase
  3. Companies in difficulty from the 3rd year

Credit advice, if banks reject!

Credit advice, if banks reject!

  • favorable government loans by Intrasavings Bank with indemnity
  • Rescheduling expensive current account credit
  • Order pre-financing and increase warehouse
  • Guarantee of the guarantee bank if the collateral is too low
  • Capital raising for other purposes
  • Consulting cost subsidy 50% to 80%

There are banks that still finance if the house bank refuses!

What is the debt ratio?

The realization of a real estate project involves, for the applicant, to know his borrowing capacity, this in order to have a precise idea of ​​the amount he is able to borrow for good. To determine this capacity, banks use a tool based on the ratio between expenses and recurring revenues. This tool, called the debt ratio, makes it possible to estimate as much as possible the share of the budget dedicated to the repayment of monthly payments of the mortgage loan.

The debt ratio in a nutshell

debt

It is generally accepted that the debt ratio should not exceed 33 %, in order to preserve the financial position of the borrower and not to create a risk of any difficulties in repaying the loan. 
Thus, depending on the household debt ratio, and depending on whether the risk is judged or not too high, a mortgage can be refused or granted by the lenders.

In spite of the 33% rule, each institution determines the real estate debt ratio and the borrowing capacity of the applicant according to its own rules.

The reason why a household can be refused a loan by a bank when another will accept his file for the same project. 
It should also be noted that banks do not limit their study to the single loan rate of the mortgage, but also analyze the profile of the borrower, namely his professional situation, his family situation, his age, his income, the duration of the loan or the existence of a personal contribution.

The notion of “rest to live”

The notion of "rest to live"

In this respect, the mortgage debt ratio may vary significantly depending on the resources of the households concerned.

A borrower whose resources allow him to have a comfortable “rest to live” can thus benefit from a slightly higher debt ratio than a household with modest resources.

For information, some incomes are systematically taken into account for the calculation of the debt ratio. These are net wages, including, where applicable, contractual bonuses, non-salaried employment income, maintenance payments made by court order, as well as retirement pensions, disability …

Conversely, taking other income into account is left to the discretion of banking institutions.

These are commissions, family allowances, housing allowances and property income. 
On the other hand, exceptional bonuses and other professional allowances are excluded from the calculation of the debt ratio during a mortgage.

To know its borrowing capacity and determine its debt ratio, the following rule should be applied: 
debt ratio = total amount of the loan x 100 / net income, some and recurring of the borrower (s)