Are you self-employed and need to finance a project? When it comes to financing solutions, there are two ways to obtain credit as a self-employed person! You can obtain a personal loan or apply for an SME loan in your company's name. While financial organizations lend money easily to salaried employees, banks are more careful with self-employed people. In this new article, Lica explains how to proceed and helps you to obtain financing.
Self-employed status can scare off lenders
It's a well-known fact that self-employed borrowers find it harder to obtain credit than well-established employees. In fact, to take out a personal loan, you have to convince the lender of your creditworthiness. This means proving that you are able to pay the monthly instalments on time. To do this, the lender will draw up what's known as a "credit check". solvency.
The problem is that determining a self-employed person's ability to repay a loan is not always easy. In fact, a person's borrowing capacity is linked to their monthly income. Unfortunately, when a self-employed person borrows money from the bank, he or she doesn't always have the necessary supporting documents, such as salary slips.
His financial situation is often conditioned by the assignments he obtains. As a result, debt capacity fluctuates constantly. This explains the main difficulty in obtaining credit as a freelancer. Unfortunately, financial organizations are wary of fluctuating financial situations.
The solution for obtaining credit as a self-employed worker
Rest assured, despite the difficulty of the task, a self-employed person can still obtain credit. This is precisely where the assistance of a credit broker comes into its own! As you can see, obtaining credit will depend mainly on the creditworthiness of the lending institutions. So there's no point in submitting an application to a bank if it's not beyond reproach.
Preparing your application then becomes a time-consuming task. What's more, it's best to know how to put together the right documents and submit them favorably to the various organizations.
Lica assists you in this process, free of charge, and prepares the best credit application for you. But that's not all! In addition to preparation, as an independent broker, We'll make sure you get the best terms on the market.
It's also worth noting that a specialized credit broker can also advise you on the right type of financing. It's not always easy to compare offers and decide whether to take out credit in the company's name or in your own.
What documents do I need to obtain credit as a self-employed worker?
The documents required to obtain credit can change. This depends on your situation and whether you are applying as an individual or as a company. Here is a brief summary of the documents required to obtain credit as a self-employed person.
List of documents required for financing in your name :
- Latest tax ruling
- Mortgage contract or lease
- Health insurance policy
- Bank statements for the past 3 months
If the loan will be in your company's name, Here are the necessary documents:
- Complete balance sheet for the past year (at least 12 months)
- Company bank statements for the last 3 months
- Proof of registration in the commercial register
- Director's identity card or residence permit
These are just two non-exhaustive lists, and the documents we ask you to provide will depend mainly on your personal situation. It's not unusual for a self-employed person to have several sources of income, or even a secondary salaried activity. As each situation is unique, at Lica we treat your request individually and in the strictest confidence.
Our conclusion for financing your self-employed business
Despite certain constraints, a loan as a self-employed person is quite feasible if you use the right broker and your application is perceived as favorable by the banks. Apart from certain specific criteria, your chances of success will depend mainly on the quality of your application. That's why it's so important to work with a specialized intermediary who can answer your questions and guide you towards the most appropriate solution.
Self-employed credit can be necessary in certain situations. If you make a mistake when submitting your application, you could find yourself completely blocked, and your chances of being granted credit in the future could be reduced to zero. This is due to negative registrations at the Central Credit Office (ZEK), which unfortunately have a direct impact on the creditworthiness analysis carried out by lending institutions. So it's crucial to address your first application to the right lender, and to avoid ads such as «fast, no-account loan», which will have a negative impact on your chances of being granted a loan.
Now that you know exactly what's involved in obtaining your loan at the best market conditions, take the time to contact our specialists. They will provide you with confidential support.