Self-employed persons, traders and small companies are particularly affected by the new regulations Basel III for banks for lending to companies: For smaller loan amounts of up to 100,000 euros, the ratio between expenditure and income is considered too low or too lucrative from the Bank’s point of view , As a result, many lending banks and financiers have removed loans for self-employment and small companies from their portfolios.
This situation is paradoxical because small businesses, the self-employed and entrepreneurs are more dependent on loans than employees. Because ultimately it is about nothing less than their professional existence.
Consequence: Self-employed, tradesmen and small companies are often looking desperately for credit alternatives outside the bank.
Positive news: With the advancing digitization in financial technology (FinTech) there are now many new and interesting alternatives for non-traditional banking financing, especially for the self-employed, tradesmen and small companies.
There are basically three types of credit alternatives to conventional bank credit:
- FinTech: Specialized Credit Companies and Portals for customized loan offers
- Crowdlending: Online platforms for low-cost self-employed loans
- Direct Banks: Online provider of cheap self-employed loans
FinTech: Specialized Credit Companies and Portals for customized loan offers
FinTech – a combination of financial services and new technologies – unlike the house bank, offers tailor-made loan solutions for the self-employed, the tradesman and small companies. Tailor-made loans are tailored to the individual needs of the client and thus always for the benefit of the borrower. The FinTech companies are in competition with established financial institutions. The winner is the customer: new offers – easy to use, lower costs, greater transparency! FinTech leads to a paradigm shift in SME financing: from petitioner to courted customer!
COMPEON is a provider-independent full-service provider: in addition to corporate loans, there are also leasing, factoring and private equity. Business Benefit: Choose the best financing possible by comparing the offers from 220 finance partners and 1,700 funds with a single online request!
iwoca is a specialist for fast and short-term business loan offers with a term of up to 12 months: Credit decisions within a few hours and thus within one working day access up to € 100,000. Ideal as bridging finance, bridging loan and to solve unforeseen financing bottlenecks or liquidity gaps.
kapilendo is a full-service provider in corporate finance: private investors invest in the projects of medium-sized companies – and kapilendo brings them together in the credit marketplace.
Crowdlending: Online platforms for low-cost self-employed loans
In the US, a megamarket has long since become part of crowdlending in Germany. Thus, through an online platform, corporate loans are brokered, which are granted by private investors / investors to medium-sized companies. Crowdlending platforms are interesting alternatives to the bank, especially for smaller loan amounts and projects requiring explanation.
Crowdlending is an insider tip for cheap loans for self-employed and small companies without going through the bank!
auxmoney, Funding Circle, smava and kapilendo are online credit marketplaces for retail lending to small businesses, ie direct lending without going through the bank. Advantage: The repeatedly criticized (too) high bank margins are eliminated. Another plus: In contrast to the bank, the applicant can present and justify his loan project in detail. Smava offers private loans as well as ordinary online loans.
Our Crowdlending tip for cheap loans for self-employed up to 50,000 euros: auxmoney:
Unlike the house bank and online banks, the self-employed at auxmoney can detail their loan project and explain what, according to our experience and numerous feedback from customers, clearly favors positive lending! Only the maximum loan amount of 50,000 Euro seems to be a disadvantage. However, this can be remedied by splitting up the loan project (first loan, follow-up loan 1, follow-up loan 2, …).
Direct Banks: Online provider of cheap self-employed loans
Self-employed direct banks without their own branch network as alternatives to the house bank have been actively used for years by self-employed persons, tradespeople and small companies. The primary advantage of the direct banks are compared to branch banks (house bank) usually lower interest rates. Since direct banks lend loans exclusively online and thus have significantly lower costs, they can also offer lower interest rates.
The credit institutions Bon-Kredit and Creditolo are both credit intermediaries, working together with more than 20 partner banks from Germany and abroad. Benefits for customers: You do not have to audition at 20 banks. The credit intermediary takes on this task and sends the customer the best offer.
Both Bon-Credit and Creditolo also offer loans without Schufa. Both credit brokers allow cheap loans for self-employed, tradesmen and small companies, because the applicant receives the best offer of all 20 partner banks.
Audited Credit Alternatives FinTech, Crowdlending and Direct Banks
The SME-KREDIT team periodically researches and investigates where there are cheap loans for self-employed, business people and small companies, in particular the new possibilities for obtaining loans by means of fintech, crowd lending and direct banks are analyzed.
The results of the research are subject to a monthly monitoring and are published in the ranking for loans for self-employed and small companies. Loan seekers thus receive up-to-date and reliable information on the interest rates and customer friendliness of credit providers.
The ranking was created according to the guidelines of the German Stiftung Warentest and is ideally suited to finding cheap loans for the self-employed. With the monthly publication of the credit ranking, the self-employed spares the tedious search for credit on the Internet with the dangers of credit rip-off!
Credit alternatives FinTech, Crowdlending and direct banks – Ranking of the month March 2019:
The test winner compeon is a provider-independent full-service provider for SME financing in Germany. Companies and their consultants, freelancers and the self-employed can quickly find the optimal financing solution via the compeon platform. In addition to loans, there are also leasing, factoring and private equity.
Another advantage: access to 1,700 subsidies from the German state and the European Union!
Our tip: Study loan requirements before applying!
Self-employed persons, tradespeople and small businesses are well advised to consider the conditions for a loan in advance before applying. Thus, self-employed and small companies save a lot of time, frustration and false hopes. It should be noted that the terms of a loan are each dependent on the lender.
Loan applications are often rejected for formal reasons, as the requirements are not met. All too often completely unnecessary, because often the self-employed would meet the requirements.
Our credo: No credit agreement without credit comparison!
As with any loan, we also recommend lending for the self-employed and small business to get at least 3 offers. The deviations and thus the potential savings can be considerable. The reason for this is that in the credit check of self-employed different credit institutions apply quite different assessment criteria. Under Credit comparison you will find a concrete guide to the procedure.
Credit for self-employed and small businesses to bridge liquidity gaps!
For small businesses, the self-employed, freelancers and entrepreneurs, online loans are used in particular to bridge financing bottlenecks or to remedy liquidity shortages. Fast and uncomplicated processing is often the first priority. Also, you would like to have an alternative to the house bank. Our recommendations for bridging loans as interim loans can be found in our bridging loan ranking.
Our top recommendation for fast, short-term and cheap loans for self-employed, business people and small companies:
COMPEON offers fully digitized, fast company credit:
Until the signing of the contract, no manual step is necessary: Binding loan commitments over 100,000 euros in 24 hours, up to a maximum of 750,000 euros within 48 hours. Ideal for financing bottlenecks. Get a free compeon offer now!
Funding as a missed opportunity for the self-employed and small businesses
In Germany, there are 1,700 support programs for companies. Many self-employed persons, traders and small businesses are unaware that there are very attractive and often cheaper financing alternatives with subsidies and grants from promotional banks. Through a funding request on the COMPEON platform, applicants will find out which of the 1,700 funding programs supports their financing project. More at: Subsidies for self-employed persons, tradespeople and small businesses
Credit for the self-employed without Schufa?
Often self-employed people are looking for self-employed self-employed without Schufa because of alleged Schufa problems, but better would be to start looking for a self-employed loan despite Schufa! Why?
The search for a loan for self-employed people despite Schufa makes sense, since not every bank considers a negative Schufa entry as serious and leads to a rejection of the loan application. Our experience shows that in over 90% of all cases, despite negative Schufa entries a normal loan for the self-employed is possible. For minor Schufa deficiencies such as a forgotten or not punctually paid bill a normal loan can be possible!
Our tip: Credit for self-employed without Schufa always as a plan B, namely, if it should turn out that due to major Schufa problems but no normal loan is possible.
Self-employed, tradespeople and freelancers 95% did not know that…
Everything else about cheap loans for the self-employed, freelancers, founders, entrepreneurs, traders and small companies find loan seekers in our practice guide loan for the self-employed.
Also published on Medium.