Self-employed loans: how to finance your start-up

innovative finance loans

The loan is an important element of financing for entrepreneurs. Borrowed capital can be obtained, for example, from the house bank or from a promotional bank. Microfinance institutions also lend smaller loans to the self-employed. However, online credit, in particular, is an interesting form of financing that you should consider as a founder, self-employed, or young company. Collateral, guarantees, and bank account are further key points on the way to your credit for starting a business. The innovative finance loans really come up with the perfect deals now.

How to find the right loan for your start-up

In addition to your own funds, which you bring into the foundation (equity), debt capital through credit is the second important pillar for financing your business start-up and self-employment. First of all, it is clear that obtaining a loan for self-employed without equity is much more difficult than if at the foundation also own money is introduced.

The term debt includes the various forms of credit for the founder. Also, grants are often given in the form of loans to future entrepreneurs. Other forms of grants are grants or guarantees. By taking out a loan, you are in debt to a creditor, for example, your house bank or promotional bank and thus commit yourself to repay the entire loan amount and to pay interest. The following questions will help you to find the appropriate loan for your start-up.

Loan privately, an online loan from the bank, or rather a promotional loan? Which loan suits you, find out here.

Where do you get a start-up loan?

When it comes to the question of where you, as the founder, get a loan, various factors play a role. For example, the amount of your loan is very important. There are various lenders that lend a loan to the self-employed. These include

  • Banks
  • Development banks
  • Microfinance institutions or also
  • Online loans

If your house bank does not want to lend you a loan, ask your bank to help you with a request for funding from the appropriate development bank. For example, many banks provide loans to start-ups.

Do you have enough collateral for the loan?

Sufficient collateral is often a basic requirement for the award of a loan for the self-employed, even if your business concept convinces the lenders. For example, as collateral for the loan, banks accept guarantees from third parties or tangible assets, such as real estate. But you can also deposit machines, goods or securities as bank-standard collateral for the loan. However, the Bank usually invests only part of the current value for the calculation of the collateral. That’s what you should think about when you create the collateral list for the bank conversation. The issue of creditworthiness also plays a role in credit. So the bank takes in assessing the creditworthiness of a scoring procedure to assess you and the company.

No adequate collateral? Guarantee.

In order for the start-up loan not to fail due to insufficient collateral, there are guarantee banks in the countries that help the self-employed. If you already have a house bank, you can apply for a classic guarantee. If you have not yet been able to obtain a house bank for your project, the guarantee banks often also offer the Guarantee without Bank program, so that the credit for starting up a business becomes possible. However, in order to obtain a guarantee from a guarantee bank, the prime consideration is that your business concept is conclusive and economically viable.

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