The nature of the freelancer is a special form of independence. The freelancer distinguishes himself in the professional field to the tradesman, since he works in a professional independent but independent service. In German tax law is unlikely to talk about demarcation indicators between a professional self-employed and a classic freelancer.

 

Which special forms / subtypes exist for loans for freelancers

Despite the hurdles already mentioned for freelancers to get a loan, there are still reputable banks that accept such loan requests. The loans especially for the private sector are often earmarked, z. B, a car loan or similar.

Also, as freelancers, you should be aware that the interest rates offered on these loans are usually a little worse than what would be the case for an officer with a lifetime income. Another way to get money on a loan is to use personal loans from parents or friends.

The potential here is often underestimated due to false shame. As a rule, their own parents would rather rarely ask for a loan 13.00% APR. Good contacts here are also online platforms that private investors who are looking for potential borrowers have to offer. Through the borrowers, private investors want to invest their equity profitably in the form of loans.

Due to the current low interest rate, it is now a smarter option for many individuals to earn a few percent interest on a loan than to get 0% on a savings account for the same amount.

Many banks also grant customers, with whom they have worked together for a long time, the granting of a disposition credit. However, this requires a long-standing business relationship with freelancers. During this period regular income should be received.

The bank will then give a so-called advance of confidence that the coming years can continue to be successful. This provides the freelancer ad hoc more flexibility in payment transactions, since now a short-term bottleneck can be compensated by the discretionary credit.

However, due to the extremely high interest rate, this financing option is only intended for emergencies and is by no means suitable for long-term financing options.

What are potential pitfalls for freelance loans

What are potential pitfalls for freelance loans

Generally possible pitfalls are inevitably also found among freelancers in lending. It is generally difficult for self-employed to keep the order base and thus the payments received constant. Fluctuations inevitably arise in earnings, sometimes more and sometimes less. Especially in the first years of self-employment then also usually lack the opportunities for hedging or for payment in a separate savings plan to build up equity. It is good here to be able to show a possible partner, who can also compensate for longer financial periods with a fixed and fixed salary. Absolutely recommendable in the search for a suitable loan as a freelancer is the avoidance of dubious fee-based credit intermediaries with usurious interest rates. Even though loans for freelancers generally have higher effective annual interest rates, these loans do not reach the range of the usurious interest rate.

What to do if bad Private credit / credit rating?

What to do if bad Private credit / credit rating?

Freelancers who have a bad credit rating and provide negative information about Private credit usually have no chance of obtaining a loan in the case of normal lending at a bank.

The risk of the banks is already under normal circumstances already considered to be quite high, so that when submitting this element of a positive decision almost is excluded.

If you have a difficult credit rating, you can otherwise bring in collateral or a guarantor as a freelancer in the search for a loan, as already mentioned. However, then the improvement methods are soon exhausted.

Dodging on alternative financing bodies or financing instruments, such as the search for private investors, can only be advised from the principle in such cases.

Current figures and interest rate developments

Freelancers can certainly benefit, in particular because of the currently ongoing low interest rate. After all, private investors are hardly getting any interest on savings options used to date. Some finance houses even charge interest on savings. These savers are becoming more and more credit investors. Because when you grant a loan, you will get good profits in the form of interest over the term of the loan. The private investors work through relevant online platforms and look for their next borrower there. However, the test of whether a loan is granted here is quite similar to that used for lending by the bank. However, it is more likely to be argumentative to the investor. Often, private investors see significantly fewer problems with credit default risk than traditional banking institutions.

Some uses

New laptop office equipment Further education
What exactly:

– For freelancers, the laptop is an important work tool and must be replaced immediately in case of failure

– By credit, the laptop can be paid directly in cash

What exactly:

– Anyone who works as a freelancer, needs a table, chairs and office cabinets

– if the equipment can not be rented, it must be bought

What exactly:

– Freelance self-employed must also take care of further education themselves

– For some studies, certificates, etc., a loan is worthwhile, if later on better orders are possible

Advantages:
The defective device can be replaced directly. You do not have to get involved in the usually expensive financing with the seller, but can pay directly in cash.
Advantages:
The office furniture can be paid quickly and easily with a freelancer loan. The expenses can be deducted as operating costs from the tax.
Advantages:
The training costs can be deducted from the tax. The loan is requested quickly and without major problems.
Calculation:

Loan amount: 1000 EUR

Effective interest rate: 1.95%

Duration: 12 months

Monthly rate: 84.22 EUR

Total interest: 10.59 EUR

Calculation:

Loan amount: 2,500 EUR

Effective interest rate: 1.95%

Duration: 24 months

Monthly rate: 106.30 EUR

Total interest: 51.10 EUR

Calculation:

Loan amount: 1,750 EUR

Effective interest rate: 1.95%

Duration: 24 months

Monthly rate: 74.41 EUR

Total interest: 35,77 EUR