The situation of self-employed or self-employed people often arises that they have to bridge larger or smaller financial bottlenecks. The reasons for this can be very diverse and range from a poor general economic situation to a lack of orders to unpaid bills.
Sufficient liquidity is essential in order not to endanger business operations in this situation. However, this question may prove difficult. If there is no or insufficient equity capital, a bridging loan would be essential for the self-employed.
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Finding a good self-employed bridging loan is not easy. If the banks are willing at all, they will examine the applicant’s creditworthiness very carefully. Those who have been self-employed for a few years and who can convince their bank that their current financial problems are only of a temporary nature have the best chance. The most important condition for lending is positive credit bureau information.
If you urgently need a bridging loan for the self-employed, you should not act hastily, but get several offers. The Internet would be ideal for a quick, current and uncomplicated comparison. A loan calculator could also be used here.
Bridging loan for the self-employed – often only a short term
A key feature of the bridging loan for the self-employed is the short term. It is usually only 3 months or 90 days. Loans with longer terms are unsuitable for bridging short-term financial bottlenecks and tend to finance larger or smaller business investments.
KfW can offer a bridging loan for the self-employed on particularly favorable terms. As a state organization, it is not dependent on making the highest possible profit from lending. In certain circumstances, the overdraft facility on the current account or the overdraft facility on the business account can also be used as a bridging facility. It could also make sense to take out a personal loan among friends, relatives or acquaintances.
This would have the great advantage that the conditions can be negotiated individually and are not tied to as strict requirements as is the case with state or private banks. However, the principle should also apply to a personal loan that it is repaid on time and properly. Otherwise, a lot of trust could be lost here.