Ideal for the self-employed
- Start your credit request now (this does not result in a contract).
- After checking your request, the money will be in your account after 4 days.
- All you have to do is accept our offer. If not, then not. No catch, no upfront costs.
There are only two options for the bad credit score loan. On the one hand, risk loans from private and commercial banks are possible. Often, however, it can also be homemade mistakes that present a good credit score in bad light.
Loan with poor credit score – optimize business evaluation
The credit score (business evaluation) can be the linchpin when lending to entrepreneurs. Via the credit score, the bank receives the clear and timely overview of the company’s situation, as set out in Section 18 of the Banking Act. It is all the more annoying when the numbers speak against the company in a fundamentally positive situation. Smaller businesses run by the owner as a sole proprietorship are particularly affected.
An example of an unnecessary mistake in the credit score is to post the private withdrawal as an entrepreneur’s salary. In accordance with the evaluation criteria of the programs of the credit institutions, the individual company is evaluated with the standards of a GmbH. The private withdrawal, which is actually a profit withdrawal, is valued as labor costs. The profit shrinks, the credit score becomes unnecessarily worse.
The range of avoidable mistakes
The range of possible misrepresentations that leads to the search for the bad credit score loan is long. In close consultation with the tax advisor, a credit score can highlight the positive company development without lying.
Another avoidable mistake concerns the purchase of goods. It is entrepreneurially correct and logical to order goods in large quantities. This allows volume discounts and other special conditions to be realized. The sale is of course slow and over a long period of time. The high cost of bulk purchases easily leads the operating result into the red. In the monthly episode, the credit score reads like a roller coaster. Anyone who books the cost of goods and not the purchase of goods receives a uniform, realistic and at the same time positive corporate image.
More and more credit institutions are beginning to expect the credit score monthly. Even if it is not specifically required, the open information policy will have a positive effect on the company’s credit line. Nevertheless, the confidence-building measure can also become an own goal. The subsequent annual financial statements should not deviate significantly from the figures submitted. Otherwise: “Once you lie, you don’t believe it”.
Alternatives to credit with credit score
Not all banks rely on the business evaluation for lending. A loan via the income tax return could be interesting for freelancers and small independent businesses. Credit providers, such as Barclaycard, expressly advertise credit options for the self-employed with the income tax return as proof of income.
Loan providers who allow self-employed applicants without a credit score can be easily identified using a loan comparison. The application process is as convenient and easy as for ordinary workers.
Another way to avoid the bad credit score loan is through private investors. Loans from private donors are now one of the established financing options in self-employment. You can contact investors free of charge via one of the portals for private lending. In contrast to commercial lenders, it is not only computer analysis and extensive figures that count for private investors. What is more important is a good business idea and understandable future prospects. From a private perspective, the loan with poor credit score can easily be avoided.