A credit for traders is a special case, as entrepreneurs and traders are usually unable to teach certain conditions that a lender requires before a positive decision can be made on the loan. The company certainly provides a high level of security, especially if it is successful, but other requirements of the lender may not be met.
These tasks undoubtedly include providing a certain amount of evidence of regular income. Of course, it depends on the type of business that is carried out, whether there is a regular “income” in the sense of equal pay, or whether the income fluctuates in such a way that no binding commitments can be made. However, it is precisely these binding commitments that the lender needs in order to be able to justify, based on the calculations, what the loan amount and the term are.
The credit for traders as a special service offer has been in the focus of credit institutions for some time now, because as there is an increasing number of new business registrations, interest in such loans is also increasing. The misconception that it must be very easy for entrepreneurs to get loans remains persistent, but it is not true and it can even be said that the opposite is more the case.
Credit institutions and banks have already become more cautious and less risk-taking when it comes to lending and goodwill offers since the financial crisis and it is of course not uncommon for self-employed people to be rejected just as much when it comes to lending as it is for people happens with a low income.
If the credit for traders is to be used to create improvements in the professional framework, for example through new devices that are purchased, or the like, this can of course be used very well as an argument in front of the bank or the lender. It would be less smart to take out a loan for purely private purposes.
If there is no correspondingly high income that can be presented in the annual overview of the tax office in this case, the chances are automatically minimized. Depending on how high the loan should be for business people, the bank will of course require collateral, which may also affect the company itself. However, no general statements can be made here, if negotiations and conditions of this kind depend very much on the individual case.
Traders who need a loan should, if possible, play with open cards towards the lender. Of course, the information that is provided is partly binding. The risk of endangering one’s entire existence through incorrect information is of course too high to be seriously accepted.
It is therefore necessary to create the most transparent field possible in personal discussions with the bank and to look for possible solutions together. Banks may not have too much leeway, but there are always ways and possibilities, and a decision for or against a loan for business people should never be made with a short decision, but requires precise planning, calculation and agreement.