Loan for self-employed

Reliable documents for the credit check

In contrast to employees, who only have to submit copies of their salary slips and a list of all liabilities for the credit check, the self-employed have to provide significantly more extensive documents. You must be able to clearly demonstrate how the business figures have turned out in recent years, which development you forecast for the future and what the loan amount requested is needed for.

As a rule, these documents are created with the tax advisor to clarify the sustainability. If you can use business evaluations for the past period, you should prepare the forecasts in detail: The better the bank employee can understand your plans, your chances of success and the planned profits, the greater your chance of a loan.

Business idea and earnings forecast

Business idea and earnings forecast

So describe your business idea in detail, describe the potential for an order and best prove this with preliminary contracts or declarations of intent. Based on your calculation and the planned sales volume, you can draw up a professional profit and loss account for the next three years, from which the bank can see the possibility of repaying the credit installments.

Even if they are only theoretical calculations, you should meticulously approach the creation of a business plan with all components. The associated liquidity and investment planning show that you have dealt intensively with all cost items.

Use of credit – check funding

Use of credit - check funding

Depending on the use of the loan amount, various grants can be considered for your financing project. If you are planning to invest in fixed assets, for example, there are cheap credit lines from KfW Bank to choose from, and lost grants can also be used. Intensive research in advance can give you information.

However, the KfW credit lines are not yet a guarantee that you, as a self-employed person, will actually get the loan, on the contrary. Very few house banks are interested in applying for and transferring these funds, as practice has repeatedly shown. On the other hand, you can apply for the funding directly, and your house bank will also be at your side – after all, this effectively reduces the financing risk.

Which documents should be compiled for the loan application?

Which documents should be compiled for the loan application?

  • Business plan with all components
  • Description of the intended use
  • Financial and investment planning
  • business evaluations of the past three years
  • Consent to the Credit Bureau query
  • curriculum vitae
  • self-Assessment
  • Foundation or company documents

Investments in real assets – collateral

Investments in real assets - collateral

In principle, you can assume that loans for investments are approved more easily than if you want to compensate for liquidity shortages – unless you can deposit a binding order as security. It is therefore always a question of usable collateral if the bank is to grant a loan to a self-employed person.

For this purpose, the bank works with the retention of title, a transfer by way of security or the assignment of claims, which enable the outstanding loan amount to be repaid in the event of a loan default. The situation is more difficult if the amount spent cannot be secured by the material value to be financed.

Liquidity and additional collateral

Liquidity and additional collateral

In these cases, the bank primarily checks the available liquidity, which must result in a reliable repayment of the financing. If there is already a long-term business relationship with your house bank, you can hope for significantly more understanding of difficult situations, since the development of your business can be viewed over a longer period of time.

If the potential of your company is not sufficient from the bank’s perspective, you can possibly make a positive decision with additional collateral. For example, a mortgage on a property, the transfer of real assets or an additional guarantee allows funding to be granted if the other framework is correct. However, you should not ignore the risks of recovery.

Credit Bureau – tip the scales

Credit Bureau - tip the scales

However, if there are already negative entries in Credit Bureau or a similar credit agency, no German bank will be able to grant a loan to a self-employed person. Then there are existential questions: Are you even able to sustainably put your business back on the road to success?

Of course, Credit Bureau entries can be made without the direct fault of a self-employed person. The payment defaults for orders that have already been completed usually trigger a fatal chain reaction that often ends with small companies. It is then important to carefully consider whether taking on new debt is the viable solution.

Claims management and contact with creditors

Claims management and contact with creditors

For the self-employed, a struggle for their own economic existence begins here. Only strict receivables management and a constructive dialogue with creditors can help out of such a situation. Approach the payee and describe the situation. Agree on installment payments or a deferral of payments to avoid further inconvenience.

On the other hand, you make payment agreements that offer you the greatest possible security. There are a number of ways to obtain credit information on the clients yourself in order to limit problems from the outset. In addition, an at least temporary optimization of the cost side is a tried and tested means of defusing crisis situations.

Factoring and other options

The factoring of invoices has proven its worth, especially in the trades, even if it reduces your bottom line: You sell the justified invoice and receive the money in return. However, you should be careful with these instruments, since of course there is also an external signal effect. But you have the opportunity to free yourself from a crisis situation on your own.

Alternatively, there are of course ways to get loans without Credit Bureau queries. On the one hand, there are platforms in Germany on which private financing can be obtained. On the other hand, there are always offers from abroad, since the query at a credit agency is not intended in most countries.

Honest risk analysis as a basis for decision-making

Apart from the fact that such financing must be critically examined, an honest analysis of your own situation should precede a decision:

  • Are you able to take a decisive turn in business development with the money raised?

If the loan is only to be taken out to service other liabilities, you are already in a dramatic spiral of debt: the costs of servicing current liabilities will continue to increase. An honest and painful cut is advisable at this point.

Get professional advice

Get professional advice

An open discussion with the tax advisor or a professional debt counseling service will help you to answer important questions yourself:

  • Is there a realistic chance of mastering the present crisis?
  • Can a solution be reached with bridging finance or is the current situation only mitigated?

If there is an opportunity to find viable ways with creditors to deal with a temporary crisis when the order book is stable, then do it. Then an alternative loan without Credit Bureau information can be a way to support you in this way.

Build effectively in good times

Build effectively in good times

In principle, the self-employed should seek dialogue with their bank in economically successful times:

  • Expand your current account.
  • Discuss your business development in detail.
  • Get credit cards.

Even if you do not need these options at all, you can always face difficult phases. However, the more impressive you have already presented yourself to your bank, the more generously it will deal with you in the event of problems.

If you then fight your way out of a crisis, also discuss any progress with your bank employee. The latter will appreciate the dialogue, as he sees his decision confirmed. The self-employed have to work significantly more with their bank in order to have a reliable partner even in times of crisis.


Advantages of a credit account

Who is a credit account suitable for?

Who is a credit account suitable for?

A credit account is primarily intended for customers who banks refuse to open a normal account. The reason for this is in most cases a negative Credit Bureau information. The accounts of underage customers are mostly kept as credit accounts, because any outstanding debts could hardly be collected for legal reasons.

What are the advantages of a credit account?

A credit account offers no advantages over a normal current account. With the exception of a very special case, in which theoretically, you can “seize into the overdraft facility”. However, this does not matter for typical private customers. However, if you cannot open a current account, you benefit greatly from a credit account. Without an account, it is often not possible to conclude a contract of employment or a lease. The credit account therefore prevents a fatal downward spiral from starting with the loss of the account.

Is there a right to a credit account?

A legal obligation to open a credit account exists only in some federal states for the savings banks. The banks in Germany have signed a voluntary declaration to enable everyone to open a credit account, but in practice not all banks adhere to it. In theory, you can insist on opening a credit account at any bank of your choice. In practice, you will surely make your life easier if you choose one of the banks that offer this procedure on its own.

Note: The European Parliament passed a general legal claim to a credit account in 2014. Germany and the other member countries have two years to implement this decision in national laws. Soon there will also be a formal legal claim.

Can the bank cancel a credit account?

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Despite the voluntary commitment, termination is possible if the behavior of the customer justifies it. This is the case, for example, if the account no longer fulfills its purpose because it has not been used for a long period of time or the account is permanently blocked by a garnishment, or if the account is used for illegal business. Aggressive or inappropriate behavior towards employees or other customers of the bank can also lead to termination.

The connection with the garnishment protection account

The connection with the garnishment protection account

In theory, garnishment protection and credit accounts are two completely different account types that have nothing to do with each other. In practice, however, banks usually convert current accounts into credit accounts when the customer requests the conversion to a garnishment protection account. When you should do that is another matter! At this point, only this note is important: the conversion does not take place automatically, so the bank must terminate an existing overdraft facility by observing the relevant period.

Myths and half-truths

There is some misinformation circulating about credit accounts that persists on the Internet. The first thing that is wrong is that a credit account is recognizable as such to outsiders. Nor is it generally free of charge. The contrary rumor that credit accounts are particularly expensive is also not correct. Another myth is that no EC cards are issued for credit accounts. There are also a few individual cases in which banks have decided to do so for special reasons. And the information that the holders of credit accounts must be reported by the banks to a place where they are recorded centrally is also incorrect. The latter only applies to garnishment protection accounts in order to prevent someone from opening several of these accounts and thus using the garnishment allowance multiple times.


Is it possible they steal my credits?

For those who are an avid program participant, finding that there is no balance available in the Cansal Invoice (NFP) is really scary. The first thing that pops into your head is that someone may have stolen your credits, but this is a hypothesis virtually ruled out by the program’s security systems.

Not sure where the balance that was there went? Check below to see if anyone can steal your NFP credits.

The first thing you should know about the program is that there are several factors that compromise the accounting of the Cansal Invoice balance, such as: invoice for payment of services, credits that have not yet been calculated, among others. This is why it is important to check all of these options before thinking that someone has stolen your program balance.

Zero balance

Zero balance

If there is no balance available for you to withdraw from the program platform, you should first check to see if there is any credit with the definition of “calculating”. If so, this means that credit will soon be available to you. Now, if you don’t find any credit being processed, it simply means that there is no credit counted for you.

As stated earlier, some invoices do not generate any credit for the program. If the invoice you request is for payment of a service, there will be no credit to your account, as the modality is not included in the program rules. There are some cases of product purchases that also do not generate credit, but in this case, it is advisable that you always ask for the invoice, so that you can compete for the draw.

It is also important to remember that it takes a minimum of $ 25 to perform the transfer. Values ​​lower than this are retained on the program platform until the user gets enough credits to perform the withdrawal.

Safe and reliable system

Safe and reliable system

The hypothesis of theft is unusual because the site has a very secure system, where only the user has the information necessary to access available credits. That is, no one can simply log in and transfer your credit. The only exception is if you pass your login information to someone else, in which case the platform becomes vulnerable.

It is important to remember that there is another very interesting detail about the transfers made by the Nota Fiscal Cansal program. The registered bank account, whether checking or savings, is in your name. Thus, if someone were to steal your credits on the platform they would be transferred directly to your registered account, or to the rebate of the IPVA account, if it is registered.

But if you still believe someone may have stolen your Cansal Invoice balance, you can still go to the “Consult” tab in the menu and click “Transfers.” In this section you can see all your movements with dates and times of all records. Additionally, you can still view the amount transferred and the account used for the transfer.