In the case of the self-employed, the need for financing may not only be private, but also operational. This often distinguishes the financing for the self-employed from civil servants or employees. Of course, lenders rate freelancers and the self-employed differently from other people. Especially with regard to the risk of default and creditworthiness. In general, lenders rather want a regular and sufficient income from a permanent position. However, no self-employed person has to hang his head straight, because there are many ways in which he can meet his financing needs.
Financing for the self-employed through support programs
Many people need financing and this is mostly because their own financial means are insufficient to implement a certain project. At this point, outside capital is always required. There are different types of loans and also different providers, depending on how long debt is used and what it is used for. Various grants also exist for small and medium-sized companies and not just for start-ups. The federal government offers funds from the special funds, and individual federal states and the UE also have various funding programs, which can help independent entrepreneurs.
In most cases, these grants are loans, and there are even grants that a self-employed person does not have to pay back. Anyone who receives public funding as financing for the self-employed will receive this at a low interest rate. Sometimes the borrowers are lucky and receive interest-free financing for the self-employed. The financing then often has a long term and there is also a repayment-free period. If interest arises, it is fixed and the self-employed person is given planning security. Nobody has this planning security with variable interest rates. If you want to receive this funding, you have to apply for it at your house bank.
Are there more ways to finance for the self-employed?
The house bank itself or other banks naturally also provide financing for the self-employed. However, normal bank collateral is required and the borrower needs sufficient creditworthiness. A borrower should always go to their house bank to make a comparison. The advantage with a house bank is that a borrower is already known there. Apart from that, a self-employed person can always provide a guarantor or other security.
The credit rating can be improved by a solvent guarantor or other collateral such as a property. There are also so-called supplier credits that help with financial bottlenecks. The self-employed can receive goods that they cannot pay immediately, but in installments or later.