Bank loan as small business owner / entrepreneur
Often, small business owners or start-up entrepreneurs have difficulty getting loans from banks to make the necessary investments. With these tips you increase your chances to get enough money for more growth and profit. However, it is important that you think carefully about which investment you need the money for and then select the appropriate loan. Because not every loan is suitable for every project. In addition to your house bank, you should make a loan request to at least one other bank, but do not contact more than three banks. As banks exchange information with each other, this usually leads to a worsening of your bank’s rating and the Schufa.
Incidentally, the Chamber of Commerce and Industry can also name banks that are more involved in financing your industry within your area. Experience shows that these are the savings banks and the ambibank and flibank.
What can you actually offer the bank in terms of security?
Basically, the bank will accept all collateral that it gets offered by you and can make money again. The bank assesses each collateral differently and always uses only the mortgage lending value. That is the amount the bank is expected to be able to obtain in the event of an emergency sale.
Provide the bank with at most one collateral out of each of the following security categories and, as far as possible, always keep a premium and / or emergency collateral as a reserve, so that you may have something to refill in difficult times.
If you do not have sufficient assets or if you do not want to use this as collateral, there is a barely known alternative (guarantee without bank). Just before the loan, without your bank, get a public guarantee for your project and go with this security in the credit. However, if the bank rejects the loan application from the outset, it will also be difficult to obtain a public guarantee. However, as an alternative, a particular lending institution also offers good loans for entrepreneurs:
As a last resort you still have the personal loan (all info: financial experts – personal loan / installment credit). In order to use this loan, however, you must be able to demonstrate a regular income. So this is not a problem with a second job, but if you are already in full self-employment, this can bring significant disadvantages. The personal loan is a good and easy solution, the only important thing is that you plan this possibility in advance, before you want to live from your self-employment. The financial experts personal loan experts advise you comprehensively, so if you have any questions, do not hesitate to call us.
Three security categories for banks
- First-class collateral: Guarantees of persons or institutions, purchased assets, bank balances (pledging)
- Ideal collateral: marketable land or real estate (land charges), marketable machinery or vehicles (security transfer), life insurance with surrender value (possibly tax disadvantages)
- Emergency collateral: assignment of customer claims, assignment of goods, assignment of facilities
It is also important for which investment, you choose which type of financing:
- Leasing: Long-term use of assets (eg vehicles or machines)
- Loan: For the purchase of long-lived assets
- Forward loans: For planned future investments with fixing of the current interest rate (secure favorable interest rates for future financing)
- Personal Loan : For investments without own collateral for banks (only possible with permanent employment, not in full self-employment, otherwise high refusal rates)