A loan for the self-employed without a BWA is one of the ways to bypass the BWA as the linchpin of lending. Before that, however, it is advisable to take a closer look at the BWA. It is often small mistakes that thwart lending.
Loan for self-employed without BWA – really the only way?
The BWA provides the most important data of the company. If the house bank rejects the loan with the BWA, it is not necessarily a bad company situation that leads to it. Individual entrepreneurs in particular naturally try to save wherever possible. You buy a “professional” software for 49.99 USD and thus expect to save on tax advice costs. At this point, a quote from John Ruskin must be included. He once said, “The law of the economy forbids you to get much value for little money.”
A software solution for 49.99 USD, if operated by a non-specialist, can never deliver a BWA that meets the requirements of the loan officer. The loan application is usually rejected, with reference to the Basel 2 agreement and §18 KWG. Large companies invest gigantic amounts of money in professional software and specially trained employees. All of this is done against the background of meeting the Basel 2 guidelines. Nevertheless, the credit for self-employed people without a BWA does not have to be the only way out.
Refurbish BWA – the simple loan solution
Together with a good tax advisor (again Ruskin speaks from the words) the problem can be solved. In order to comply with Section 18 KWG, it is sensible to submit a BWA regularly, even without a specific loan request. Instead of purchasing goods, the cost of goods is posted. The BWA does not end up in the loss zone unnecessarily.
The BWA does not have to look at how the sales price is composed, entrepreneurial wages, proportionate rent, etc. Applying depreciation not monthly, but also monthly, also ensures a constant positive company development. A good accountant has the knowledge and software to solve the credit problem.
Loan offers without BWA
From the loan comparison, a loan for self-employed persons without a BWA can usually be found in one of the first places. The Barclaycard loan offer is aimed at private borrowers as well as business people. Self-employed and freelancers can apply for the loan with their income tax assessment. Fine Lender Bank advertises the equation of entrepreneurial income and income from dependent employment. The current fixed-rate offensive could be interesting for new customers.
A credit-independent fixed interest rate of 6.99 percent is granted for new customers (as of September 28, 2013). With a loan amount of 10,000 to 35,000 USD and a term between 48 and 60 months, special conditions apply. The fixed interest rate is reduced to 5.99 percent.
Another credit opportunity where, for example, the income statement could be sufficient as proof of income, is the loan from private donors. Private investors are not limited in their credit decisions by legal requirements and other regulations. A well-presented loan request and the conclusive proof of repayment ability can be sufficient to grant the loan for self-employed persons without BWA.