Loans for the self-employed

Consist of the cost factor

Consist of the cost factor

A loan does not only consist of the cost factor interest, rather a borrower needs information about the interest rate, the loan term as well as about the number and due date of the installments. In addition, there are loan commissions and any other additional costs. In principle, all fixed assets such as buildings or machines should be financed with equity and long-term debt. At the same time, the loan term should correspond to the life and useful life of the financed investments. Therefore, machines should not be financed through a current account credit.

Many self-employed people try to extend the repayment of a loan as long as possible, especially in the initial phase of their self-employment. In this way an attempt is made to improve one’s own solvency. However, it is forgotten that every repayment extension also makes a loan more expensive. The same applies to investment loans that are too high. These too can quickly jeopardize the company’s success due to the interest burden and the high repayment rates.

If you need capital, you should contact customers or business partners before the bank conversation, because many of these people are looking for a lucrative investment. In addition to the granting of profit participation rights, such capital investments are also silent participations, limited partner interests, participation certificates or bonds. The advantage for the business partner: he participates in the entrepreneurial success that was achieved with this money. In this way, customers and business partners are financially connected to the company in the long term. However, before business partners get in, they critically examine sales and earnings expectations. Furthermore, a demonstrably functioning accounts receivable management system and useful controlling are expected within the company management.

These control instruments are particularly important in the initial phase of self-employment, because this is the only way for young entrepreneurs to receive all comparable information on their current and current plans. From this, all wrong decisions can be recognized quickly. Because whether bank loans or participations: they always have to be serviced, no matter what the economic situation of a company looks like. If you also have an impeccable credit rating, you also pay much cheaper interest because of its cheaper rating. Of course, this also applies to all promotional measures by the Capital Lender (CL).

Financing for small businesses is problematic. Here, the complex rating does not pay off, nor do CL funding programs help. Because even with support programs, the house bank must first be convinced of the idea in order to issue a loan. Even small entrepreneurs with a poor credit rating still have a chance if they offer enough collateral, but in many cases this should not be feasible. If the probability of default is too high, the loan application is often only rejected. In this phase at the latest, the self-employed have to rethink. Now, in addition to the necessary transparency, the necessary information flow must also be created.

At the same time, this requires the young entrepreneur to professionalize all corporate structures and processes in order to gain business know-how. The credit institutions themselves will not help here, rather this necessary basis must be created by the company director alone.

The same applies to entrepreneurs: avoid over-indebtedness

The same applies to entrepreneurs: avoid over-indebtedness

 Those who are self-employed also set up a business account in addition to their private checking account. There is no obligation to separate the law, but a clean division of the respective payment transactions always makes sense. In order to show a flawless determination of profits, a separation is even indispensable. Opening an account itself is not a problem in most cases; the self-employed person must legitimize himself with his ID card and submit a business registration. Depending on the legal form of the company, an extract from the register and the tax number are also required. Freelancers should first ask about a private checking account, because in most cases this is cheaper than a business account, which almost all bookings are already included. Self-employed people who only make a few bookings a month should prefer an account with a low base price. On the other hand, if you have a lot of sales per month, you better pay attention to low item prices.

Anyone who has had good experience with their private bank for a long time with regard to their private account can in many cases also receive significantly more favorable conditions for their business account. Because the longer the business relationship and the better its development, the greater the chance of negotiating the terms for your own benefit. It is also important to have regular, honest, but also confident personal contact with bank employees. This applies all the more in times of unexpected bottlenecks. Should the bank nevertheless refuse, the exact reasons must be asked so that the next conversation with another bank can be better prepared.

Credit check for a current account credit

Credit check for a current account credit

Opening an account is only the first hurdle for the self-employed. The next is the current account credit. The check is carried out either on a case-by-case basis, individually or varies depending on the customer. In this context, the Schufa information reveals how many accounts, credits and credit cards a customer has, but also points out account or credit terminations or an application to open insolvency proceedings. The bank information records existing loans, their collateral, the regularity of the account details and is created by the house bank. This also includes whether the customer adheres to the agreements made. The customer, on the other hand, draws up a self-disclosure, ie what income he has, how high his assets are and what burdens he has.

The business evaluation (BWA) provides monthly or quarterly information about the economic status of the customer. It is replaced at the end of the year by the income surplus calculation or the annual accounts. The income statement is only part of the annual financial statements. Both the customer’s private assets and a transfer by way of security (e.g. business assets, machinery or assignment of claims) can be used as collateral for a loan.

Alternative to the bank: Loan through life insurance

An alternative to regular consumer credit is the policy loan. Anyone who has taken out capital life insurance can lend it. The accumulated credit serves as security, so the maximum loan amount corresponds approximately to the surrender value of the policy. The interest rates vary from insurance to insurance. In addition, there is no separate credit check for the policy loan. The insurance contract, however, continues to run unchanged, ie the customer pays the premium plus the loan interest. Insurance coverage also remains in place. In the event of an insured event, the loan is offset against the insurance benefit due.

Private pension policies can also be loaned up to a maximum of the amount that would be paid in the event of death. The borrower can repay the policy loan according to his financial means. However, if the debt is only offset against the amount paid after the contract expires, then both your own and your survivor’s pension will shrink considerably.

 

Well Made Company non – bank credit card – up to 90 thousand for anything

This non-bank loan from Well Made Company in conjunction with the card works similarly to a conventional credit card. If you don’t spend the money, it costs you nothing.

You may think you can only have a credit card from a bank. But that is not true. Credit cards now offer “where who”. You can also have a non-bank credit card, which can sometimes offer you more favorable conditions than a credit card from a bank. Well Made Company is one of the non-bank credit companies that also offers the possibility of obtaining a card to pay for your purchases. This company can offer you a card with a limit of up to USD 90000, which you can use for anything.

Well Made Company non-bank credit card

saving cash

The non-bank credit company Well Made Company provides installment purchases or non-bank consumer loans. If you then arrange a loan in the amount of more than 40 thousand dollars, then as a bonus you can get this card.

You will not only be bound to a one-time loan payment to your account. You will be able to withdraw funds up to your credit limit repeatedly. This can be up to USD 90000 or more.

A repeated loan for anything, you pay only when you spend

saving cash

This non-bank loan from Well Made Company in conjunction with the card works similarly to a conventional credit card. If you don’t spend money, it costs you nothing (except for a low monthly card maintenance fee). You always have a financial reserve at your disposal.

If you spend the money, it is sufficient to pay at least a minimum payment of USD 1200 per month. The money you pay is automatically added to your available balance. So if you pay 5,000 dollars with your card for one month and then pay it in one installment, you can use that money again next month.

What are the conditions for obtaining a non-bank credit card?

saving cash

This non-bank card cannot be obtained separately. It is issued as a supplement to a loan over USD 40,000. The prerequisite for arranging a loan with Well Made Company is a minimum age of 18 years. It is also necessary to provide a two-sided copy of the ID card and a copy of the second identity document – eg driving license, passport, birth certificate.

Last but not least, the applicant is required to have some regular, provable income. For amounts over USD 100,000, confirmation of the amount of income from the employer is required. This may not be necessary for lower amounts. However, if you are a pensioner or on maternity leave, it is better to include a partner in your application to approve your loan.

Detailed information about Well Made Company non-bank credit card

Non-bank credit card Well Made Company – up to 90 thousand for anything
Card issuer Well Made Company sro
Type of company Non-banking company
Credit card type Non-bank credit card
Credit card name Well Made Company card
Kind of credit card MasterCard Electronic
Contactless card No
Possibility of contactless sticker No
NFC card option on mobile No
Basic parameters
Minimum card limit 40000 USD
Maximum card limit 90000 USD
Number of days without interest 0 days
The interest-free period also applies to ATMs No
Transfer money from card to bank account Yes
Interest-free period also for transfer from card to bank account No
Interest
Interest on cashless payments 24%
Interest for cash withdrawals 24%
Favorable interest 15.9%
Conditions of advantage discounted interest applies to a credit limit of USD 150000
Fees
Annual card fee 588 $
Annual card fee in the first year 588 $
Card reissue fee – after blocking 0, – USD
Card management – annual fee 0, – USD
Minimum spending with the card to be free of charge not applicable
How much you pay if you don’t use the card 588 $
Maximum how much the card can cost you 588 $
Additional cards
Number of additional cards that can be issued 0
Price of additional card not provided
Listings
By post 39 USD
Electronic 0, – USD
Installments
Minimum monthly payment as a percentage 0%
Minimum monthly installment 1200
You can set up a regular direct debit collection Yes
Regular collection of 100% installment can be set No
ATM withdrawal
Withdraw from your own ATM does not have its own ATMs
Withdrawal from a foreign ATM 1% min. 50 USD
ATM withdrawal abroad 1% min. 50 USD
Cashback 0
What rate to use when using the card abroad MasterCard Course
Payments on the Internet
Cardless payments can be disabled No
Discounts on purchases
Minimum discount for payments 0%
Maximum discount for payments 0%
Bonus points for card payments No
Discount at selected merchants for card payment Yes
More information
Card issuance conditions Citizen of the Czech Republic or Slovakia with permanent residence in the Czech Republic, older than 18 years, documented income, no negative entry in credit registers, bank account, valid telephone contact.
Insurance Job loss insurance, temporary incapacity insurance, total loss of independence insurance, death insurance (optional services not included in the basic offer)
Another services Internet access, free PIN change
Comment The card is a supplement to the Well Made Company loan over USD 40,000. The card has no interest-free period;
Custom image on the card No
Contacts
Company name Well Made Company sro
Address Bucharova 1423/6, 158 00 Prague 5, Czech Republic
IČO: 27179907

Disclaimer: The operator of this site does not provide any financial services, loans or credits. The offers for these products displayed on this site come from various public sources on the Internet and are only aggregated on this page for comparison and easy search. The site operator is not responsible for the accuracy and timeliness of the information published here.

Free credit card from Carnation Bank: If you don’t spend it, it costs you nothing!

Free credit card from Carnation Bank: If you don

A credit card can be a handy tool to save money when used properly (especially if you’re looking for a grace period). Some credit cards also cost you something. Even if you do not use them.

Loan up to 500 000 USD within 24 hours

Looking for the best bank loan? One where you pay the lowest fees or interest? One that offers as many different bonuses and services as “included”? A loan where they give you money immediately, and without long waiting.

P2P loans – bargain loans from private investors

P2P loans - bargain loans from private investors

Would you like to borrow money on more favorable terms than at a bank or a non-banking company? Then you may be interested in profitable loans from private investors. You can borrow up to USD 500,000 for 60 months with interest.

A card from Lumerican Bank: up to USD 30000 even without proof of income

A card from Lumerican Bank is a regular bank credit card that offers you what we usually expect from a credit card. For example, a credit limit of USD 10000 to USD 250000. In addition, if you only need a lower credit limit.

When does a building savings loan pay off?

Most people, if they do not have their own financial resources, finance their housing needs in three ways.

Help:

  • Mortgage loan
  • Loan or intermediate loan from building savings
  • A combination of a mortgage and a building savings loan / intermediate loan

When is it worth paying a building savings loan?

When is it worth paying a building savings loan?

Usually up to about 200 000 USD is a suitable choice building savings loan . Your financial expert will advise you on the most suitable savings bank and help you with the loan itself. Sometimes they recommend using a combination of multiple contracts with different savings banks if this is more convenient for you.

From the above it follows that from 200 000 USD upwards it is preferable to choose a mortgage loan . Of course, the appropriate type of loan must always be assessed individually on the basis of a detailed analysis of the situation of each client separately.

There are two options of building savings loan.

Proper building savings loan

money loan

To take proper credit:

1) You must save a minimum percentage of the target amount , which is determined by the agreed tariff variant. It is usually about 40% .

2) You must have a building savings contract for at least 2 years .

3) You must also meet the so-called “ rating number ”. This parameter affects the timeliness and amount of deposits, the amount of the target amount and, last but not least, the total savings period.

Inter-loan or bridging loan from building savings

money lan

A bridging loan can apply for building society immediately after the conclusion of the construction savings. You do not have to save almost anything, just put a few hundred dollars into your account. Inter-loan is a relatively expensive type of loan. In some cases, however, it is the only solid solution for the client.

The amount of the monthly repayment of the intermediate loan is then divided into two parts , respectively two account numbers. You send interest on the inter- loan to the first account and to the second account you earn a minimum percentage of the target amount . This is how you repay until you meet all three of the above conditions for being eligible for a regular loan .