A self-employed payday loan is a great way to get cash quickly. Many banks are reluctant to lend to the self-employed, while the self-employed often have a harder time than, for example, employees. But it is not impossible and often not so difficult to get a loan for the self-employed.
Important tips for a self-employed payday loan
First and foremost, it is important for a self-employed person to have no negative bad debt. For example, negative write-offs include non-compliance with payment obligations, orders for dunning and enforcement, terminated loans and affidavits or bankruptcy. The self-employed also need other documents that have to be presented to the bank. Thus, business accounts, the last bank statements as proof of a regular and sufficiently high income, income tax notices and a profit and loss account are required. Self-employment should last for one to three years and there should be enough collateral. Savings, a guarantor or life insurance can provide security.
Private and business loans
The self-employed should consider whether to use the loan for personal or business purposes. Thus, the payday loan can be used for your own wishes and is not bound to specific expenses. In the case of the business loan, the money may only be used for the expenses that are needed for the own business. This could be, for example, a new vehicle or other investments. The current interest and the processing fee then include the loan amount. The effective interest rate consists of the processing fee and the nominal interest rate. The interest rate is often cheaper, as interest rates are usually lower here. The interest rate does not increase during the entire term and does not decrease.
Important selection criteria for a self-employed payday loan
It is important to think about the loan in advance. If the loan is taken out by a bank, the credit rating is very important. What matters is whether the monthly installments can be paid. All fixed costs and the cost of living have to be considered. If there is still enough money left to pay for a loan, there is often nothing in the way. Helpful here is a business plan that can be submitted to the bank. With this, the bank can also better assess the credit rating. In addition, there should be a regular and regular income, which is not subject to many fluctuations. A comparison should always be made, whether it is a payday loan or a business loan.