For the self-employed it is not always easy to get a loan. And especially when self-employment has not been around for a long time, for example, self-employed loans under 2 years of age are difficult to implement.

Good business ideas want to be financed and this requires adequate capital.

Good business ideas want to be financed and this requires adequate capital.

In particular, the loan for self-employed under 2 years makes it easier to finance the independence or to implement a good idea with appropriate funds.

The importance of setting up a business has now been discovered in the economy, however, and so more banks have agreed today to grant self-employed loans. Ultimately, lending to a self-employed person is still a better way to do business than ultimately having no client potential with high unemployment rates.

Especially when starting up a business and granting loans to self-employed persons under the age of 2 years, appropriate natural audit measures are taken to ensure the security of repayment of the loan. In order to implement a project and establish an existence, it is therefore necessary that the founder of the enterprise presents a comprehensive concept for his own business idea. The same applies if the loan is required for the self-employed under 2 years.

Here, too, the banks immediately examine the business concept and the projects for which the money requirement exists. The loan for self-employed persons under the age of 2 years can become easier in the future or prove the creditworthiness. The loan for the self-employed under 2 years is possible at the bank to finance the start-up or to finance another project.

Guarantee collateral

Guarantee collateral

Although self-employed loans under 2 years of age still pose more problems than loans for salaried workers, the market has opened up to this target group. Collateral is important for lending. These can be made in different ways. A revenue / surplus bill is a credit-worthiness accepted by banks when self-employed persons under 2 years apply.

If there is no security due to the submission of the revenue surplus bill, bank statements and income tax return, self-employed persons under the age of 2 can take another route to obtain a desired loan amount. The provision of a guarantor who is included as a third contracting party in the loan agreement and who secures the credit with income or assets, is an alternative to get to the credit.

However, the guarantor must be financially independent of the self-employed to secure the loan. This means, for example, that a spouse who works in the same company – even as an employee – can not provide a guarantee. If the spouse is to secure the loan as a guarantor, he must earn his own income as an employee so that he or she is accepted as such by the bank.

Life insurance as a source of income

Life insurance as a source of income

Another option for self-employed persons under the age of 2 to provide collateral for a loan is to deposit an existing life insurance policy with a corresponding saving share as collateral with the bank. Here are two options. On the one hand, the insurance can be deposited with the appropriate coverage amount as collateral.

An alternative to cover money needs is to lend life insurance and thus choose the insurance company as a credit partner. An advantage of this variant is that there is no credit rating, since there is no risk of default for the insurance.