A self-employment loan with BWA is no different from an installment loan for others. He is only subject to stricter award criteria. The self-employed are not the preferred clientele of banks and financial institutions. The reason for this is the income, which can be subject to strong monthly fluctuations. Banks fear that self-employed people can not meet their payment obligations when lending. Therefore, self-employed persons receive a loan for self-employed with BWA from banks only under strict conditions. Much of this has been contributed by the Credit Directive “Basel II”. It prescribes the minimum requirements for lending in the EU.
Criteria of banks
The self-employed must have a high proportion of equity for lending. The business model for a loan for self-employed with BWA must be promising and the balance sheets of recent years meaningful. The presentation of a BWA contributes a lot to the increase in creditworthiness. BWA is a business evaluation. The BWA is created by the tax consultant in the Dataver program or in SAP. The BWA lists the last year’s income for the self-employment loan with BWA, breaks down the operating assets and compares them to the expenditures.
The key role of the BWA
Dataver collects all relevant data about the company. This makes it easier for financial advisors and outsiders to understand the business situation. The data collected comply with Section 18 KWG, which examines the creditworthiness of self-employed persons. If the evaluation of the BWA is positive and there is no negative Schufa entry, then there is nothing standing in the way of a loan for self-employed with BWA. In addition, self-employed persons must disclose their financial circumstances during certain periods during the term of the loan. Compliance with the procedure is reviewed by the Federal Financial Supervisory Authority.
The loan amount
Loans for self-employed with BWA are worthwhile only with larger loan sums, because the examination of the BWA for the financial service provider means an enormous expenditure of time. He must also have business knowledge. Small loan amounts can be realized with a personal loan. The loan amount can be up to 75,000 euros here. The interest on a personal loan is between four and 16 percent. A loan for self-employed with BWA is significantly lower interest. Here the interest rate starts at 4.75 or 5.25 percent for loan amounts of up to 50,000 euros and a term of between 12 and 84 months. The interest rate always rises with the length of the repayment period. Self-employed must make sure in the loan agreement that free special repayments and changes in the installment amount are possible at all times. If the bank waives processing fees, the credit becomes cheaper. Some loans are not for free use. They are cheaper.
What self-employed people need to know
The cost of a loan for self-employed with BWA rises with the effective annual tin and the borrowing rate. The annual percentage rate indicates the total annual cost of the loan if the terms of the loan are not fixed for the entire duration. The effective annual interest includes the processing fees, the term of the loan, set-off dates and interest. The debit interest indicates the amount of the interest on the loaned amount.
A self-employed loan does not always have to come from a traditional bank. Larger loan amounts with longer maturities are often cheaper with a direct bank from the Internet at the house bank. Peer-to-peer loans are provided by private individuals. You decide whether a borrower is creditworthy or not. A loan for self-employed persons in this form can amount to up to 25,000 euros with a term of between one year and 60 months. The interest rate is only slightly higher than the interest rate of the house banks.
Only with a VWA self-employed and freelancers receive a loan from their house bank. The VWA is created by the tax consultant. Alternatives to small loan amounts are a personal loan or a peer-to-peer loan.