These loans can be offered by banks as well as by individuals or other institutions. Such loans are categorized into different categories, which are based on the term of the respective loan.
Freelancers and start-ups have different options for credit types
These types include short-term liabilities such as supplier credit, medium-term loans such as call-off credit and long-term loans, which include, for example, business start-up loans, real estate loans or public sector promotional loans.
Reasons for a loan and which loan makes sense when
A self-employed person must always have sufficient liquidity. And this liquidity is often not guaranteed because not all expected payments are always posted on time. In order to bridge short-term bottlenecks in this regard, so-called bank overdrafts, comparable to the discretionary credit, are available, which belong to the short-term loans.
The supplier credit is also very important and is granted by the respective suppliers of a good or service. This loan primarily serves to bridge short-term liquidity, so that the freelancer does not have to pay in advance for every transaction. This deferment of payment enables the purchase, the own invoicing and the booking of the invoice receipt, without incurring costs for the person concerned.
Medium and long-term loans are of particular interest in the area of start-up and real estate finance. Here again parallels to the normal installment loans for private individuals are emerging. However, a installment loan is offered to freelancers only in very few cases. Here is more of a loan from private. But even with personal loans you have to prove the necessary creditworthiness
Freelancer and the credit rating
Banks require a certain credit rating for a loan. Business founders often can not meet these requirements. In order to get a loan anyway, you have to prove that you have been successful for several years and that the financial resources flow regularly. This proof can be provided by the tax assessment.
If you look after a solid customer base, you can also present this as collateral. In the context of data protection and customer satisfaction, the names remain protected, only the extent of the work and the regularity of these should be proven if necessary. Other points that could be of interest to a freelancer in the context of a loan, such as the information of the Bank, etc., can be read under Golden Lending.