Get credit as an independent: self-employed loan
The self- employment loan allows self-employed individuals to obtain a loan to finance the purchase of a home or other projects. For many reasons, more and more people are choosing to start a small business and work as an independent.
However, it is common for the beginning of the activity, the self-employed is in a difficult financial situation. To stabilize this financial situation but especially to ensure the continuity of its activity, it can request a credit from a financing organization.
Obtain a loan as a self-employed worker
Contrary to what people tend to think, it is quite possible for a self-employed person to obtain credit from a bank. Even though the formalities can be more complex, obtaining financing as a self-employed person is entirely possible. And it is possible thanks to the loan for independent.
Just like in a consumer credit application, obtaining a loan for freelancers requires a good profile.
A good record will give you a better chance of getting a credit. Generally, banks require the self-employed enterprise to be operational for at least two years. Those wishing to obtain funding must also be up to date in the declaration of their income. By declaring enough income, you will obviously find it easier to get a loan.
You can even consider becoming an owner. Provided you make a down payment with a minimum amount of 5% of the purchase price of the house.
Know that you can apply for credit even without confirming your income. However, the bank will require a larger down payment.
A mortgage broker may also help you to obtain credit more easily by taking into account the personal credits you have previously made.
With some credit offers, you may not need to explain your financial statements. However, even if you only have a few files to provide, the support of a broker remains useful. It allows you to maximize your chances of getting financing.
Loan application for self-employed: how to demonstrate your income?
Although it is possible to obtain funding without confirming its income, it is strongly recommended to go through this step to hope to have a favorable response to his request. There are two options for these workers to demonstrate their income. The first method is declared income that can easily be proven.
The calculation is made by averaging the two tax years on the amount of previous income. The second option is the established income that is calculated in a reasonable way based on the type of business you are running and its size.
Bank advisors also suggest that self-employed individuals who want to obtain a loan for self-employed persons should ensure that their tax return is always up to date. In addition, the chances of obtaining a mortgage credit are better when the self-employed worker has a large enough savings.
This element could even allow the credit applicant to obtain a mortgage with a lower rate.
If you are self-employed and do not have emergency funds yet, think about it. You need to predict month-to-month revenue changes, which are very common in the practice of an individual activity.
By taking this precaution, you will always have an emergency fund. You will also have some credibility vis-à-vis the bank and funding agencies.