The business of banks is lending. The higher the loan amount, the longer interest has to be paid. However, there are professional groups that do not always get a loan. We are talking about bank loans for the self-employed. The conditions are completely different for them than for a customer who is employed or has a wage relationship.
The difference between the self-employed and employees or workers
Employees and workers have one thing in common, they receive their money regularly from the employer every month. The monthly receipt of money is always the same and there are no fluctuations, unless the holiday bonus or Christmas bonus is credited to the account. A self-employed person has no constant income. There are good times and less good times here. Depending on the division, the season also plays an important role.
Lending money to this professional group is therefore an unsafe thing for banks and they fear failures. This particularly affects start-ups who have no idea of their future earnings. In most cases, financial institutions therefore refuse bank loans for the self-employed.
Grant loans to self-employed people
Lite Lender are to blame for this misery. Today’s credit institutions play an important role in the financial world. Basically, Lite Lender regulate the guidelines for granting loans. However, it also regulates how large the capital stock must be in order for a bank to exist and what risks must be avoided so that there are no losses. These guidelines also regulate the handling of self-employed and freelancers when granting loans.
In order to be able to benefit from a loan, you must have certain requirements, i.e. income. No corresponding sales are available for a business founder, which is why it is particularly difficult to obtain bank loans for the self-employed here. But there are some banks, if not many, that are willing to grant loans to self-employed people. But Credit Bureau, the platform of loans from private to private, also advertises with these loans.