Anyone who needs a payday loan today as a self-employed person can now find extremely favorable offers.
For payday loan, the interest on payday loans has slipped below the mark of one percent for quite some time. But installment loans are cheaper than ever, because some banks offer this type of loan even at interest rates of less than three percent.
However, these cheap offers are often only made available to customers with excellent credit ratings. This is evidenced by the fact that so-called credit-based interest rates have risen significantly in recent years.
However, most credit institutions assume that the customer has no bad credit and on the other hand earns income from dependent employment. As a result, self-employed and freelancers often find it harder to obtain a payday loan. In the following guide, we would like to explain in more detail what payday loan self-employment loans are and where you can find this special loan type.
What is the online self-employed payday loan?
Due to the situation mentioned above, self-employed people, which include freelancers for most banks, have a significantly limited choice of payday loan offers. While credit institutions generally offer different loans for dependent employees, ie employees and civil servants, there are numerous banks that exclude self-employed and freelancers from borrowing. On the other hand, there have been deliberately special offers for self-employed for years, which are usually offered under the name “loans for the self-employed”. In the vast majority of cases, these are loans that you can apply for as a self-employed or freelancer via the Internet. Therefore, online loans for the self-employed are often discussed in this context.
In general, the online payday loan for self-employed and freelancers is an ordinary installment loan, which can accommodate not only dependent employees, but also self-employed and self-employed persons. These payday loans otherwise have all the features that you may already know from a standard installment loan. For you, this means that you should first make a comparison of offers, which, because of the lower supply, will certainly not have to be quite as extensive as would be the case for a regular employee loan.
When comparing yourself, you should pay particular attention to the following conditions:
- Effective interest rate
- Possible payday loan amount
- running time
- Monthly loan installment
- Possible costs and fees
- unscheduled options
In addition to these terms and conditions, it is also recommended that you check with the respective lender, whether he approved the payday loan blank or whether he demands a security.
Who can take an online self-employed payday loan?
First of all, most payday loan offers aimed at the self-employed are freelancers who can take out this payday loan. In addition, there are, however, some requirements that make most banks bank lending. For example, online loans to the self-employed are usually only required if the loan seeker already carries out the current self-employment for a certain number of years. As a result, the bank often only lends a payday loan to the self-employed if they are already doing their current business for three or five years. After three years of activity, the risk – that is, at least statistically – that the self-employed and freelancers are unable to pay falls considerably. If the alleged security of dependent employment does not exist, credit institutions will at least want to achieve this by reducing the probable credit default risk.
In addition to the minimum duration that self-employment must already be, there are other requirements that the self-employed and freelancers must normally fulfill if they wish to obtain a payday loan, namely:
- No negative entry
- No declining income (year on year)
- Optional: provide securities
- Certain economic documents must be submitted
- Residence in Germany
While employees usually only have to submit a current salary certificate as proof of their income, the banks usually require somewhat more extensive documentation from self-employed and freelancers. Depending on the type of business and self-employed activity, it is above all the following documents that you will probably have to submit to your bank if you want to have a loan as a self-employed person. For an online payday loan, this usually works by faxing or e-mailing the documents to the potential lender:
- balance sheet
- Income statement
- Business plan
- Revenue surplus account
- statement of assets
- Business evaluation (tax consultant)
As a general rule, for any self-employed payday loan, you should make sure that the loan interest payable is reasonable. Quite a few banks still see self-employed and freelancers as potentially riskier customers, so they want to compensate for this increased default risk with a higher interest rate. However, since this is not the case with all credit institutions that offer a loan for the self-employed and freelancers, a comparison is worthwhile.