Credit for self-employed workers has become very scarce in recent years. Because the banks have closed the tap of the financing without endorsement to autonomous, and that action has suffered the smallest companies.
They have suffered a lot from the lack of credit in Spain, because for many individual entrepreneurs a credit policy or a discount line of promissory notes was their only form of financing.
But after the prick of the real estate bubble the loans for companies without endorsement ended for all companies and especially for the self-employed who had to close their businesses in the absence of bank financing.
But another problem added in the autonomous credit, is that unlike a corporation, this legal form usually has a very low private capital figure. Given that, unlike companies, they do not have a statutory capital figure by law, nor do they have to provide a legal reserve based on the result of the business activity.
Normally the self-employed do not have information or a financial cushion that is an aid in case of lack of money to deal with debts or business expenses. Hence, entrepreneurs have to resort to loans for new self-employed.
And unlike SMEs, especially the largest ones, banks such as FCA or bankate do not usually offer pre-approved loans for self-employed people who are clients with an account in the entity. In other words, they no longer grant personal loans for self-employed workers without conditions.
Hence, many businesses faced with the absence of loans to self-employed workers have had to resort to other financing solutions. Being able to obtain financing without endorsement for freelancers, that of another legal form it would have been impossible to request.
Mainly through information with online credit companies, ie microcredit without endorsement, using comparisons such as SMS Credit that allow finding the loan for self-employed workers with the conditions that best suit the needs of the individual entrepreneur.
The best loans to start a business if you are self-employed
Many of the people who decide to start a business do so as a self-employed person. Because after requesting information, they discover that setting up a legal company as a society is not as fast or cheap as being autonomous, which is why few entrepreneurs use it for the corporate form.
Opting for one legal form or another does not allow obtaining financing for companies in an easier way. Because at the end of the day to survive as an entrepreneur you need private capital and credits for self-employed entrepreneurs without endorsement or for new companies. Although usually ends up applying for credits and loans for entrepreneurs without endorsement.
And that is well known to entrepreneurs, especially the unemployed, who when they start to set up their own business in the form of freelance seek any type of aid.
Because many of them do not have more information or financing than the money obtained through the capitalization of unemployment, which is why many resort to loans for new businesses.
That is why many entrepreneurs seek financing for self-employed workers and entrepreneurs without endorsement through traditional banks. This is the case of banks that offer autonomous loans to sell other more profitable products, such as insurance, once the client opens an account.
But we are not referring to Creditender loans or other banks. Because these financial entities offer special conditions and information on the specific financing lines for self-employed and entrepreneurs, in order to support the creation of businesses.
The problem is that most entrepreneurs are not able to obtain loans for freelancers without collateral, because banks usually require new entrepreneurs to provide collateral.
The most common are the guarantees and mortgages, especially for self-employed. They usually offer as collateral their own home, through a mortgage.
The problem of granting any type of autonomous loan without endorsement, is that banks do not like credits to freelancers. Because for any financial institution giving money to a new business from an individual entrepreneur is very risky.
Because banks know that the self-employed are the businesses that have the most difficulties to survive in the economy and the current market. Hence, they usually grant loans for companies without endorsement.
For this reason, and against the option of giving autonomous loans, they prefer to finance larger SMEs with a corporate legal form. Because they offer greater solvency in their balance sheets and with a better result in their profit and loss account.
Loans for freelancers without endorsement
Until a few years ago, financing for freelancers without a guarantee was centered on credit policies for companies, but it is now part of the past. After the credit restriction resulting from the financial and real estate crisis, most banks did not renew the line of credit policies for the self-employed.
Although some banks and cajas also offered loans without endorsement for self-employed workers, often with a simple personal guarantee. Something quite risky given that the estate of an individual entrepreneur is usually limited to their private home, usually already mortgaged.
This is why it is more normal for banks and savings banks to grant loans to companies without guarantees, especially when they are limited or limited companies with a good billing history, as well as a balance sheet and a healthy profit account.
That is why many businesses entered into a crisis and had to close due to the lack of their only source of bank financing that maintained the operation of their businesses. That is why many businesses have had to resort to another type of financing for the self-employed. As for example quick loans without endorsement, with amounts of up to 800 euros.
Because for a self-employed person to access a mortgage loan without an endorsement is very difficult, since their only non-personal guarantee is their own home. Because unlike an SME in the form of a company, can not resort to the endorsement of partners to apply for funding for self-employed.
Hence, requesting these credits despite not having any kind of non-payment on lists of defaulters such as RAI, is very difficult. Because for banks, the self-employed are the companies with the highest risk, only surpassed by entrepreneurs who do not have a business history. In fact, most of the entrepreneurs do not exceed 12 months of life.
But returning to the problem of loans without guarantees for freelancers, the lack of credit by banks as well as the lack of private capital in businesses run by self-employed. It has forced individual entrepreneurs to start and manage their business using loans to freelancers of private online credit companies.
They offer fast loans for freelancers instantly after filling out an online form, but with a few limits on the granting of the quick loan without endorsement. What does not ask for money for more than 300 euros or 600 euros.
That is why the mini online credits, better known as loans for online self-employed people, are replacing the solutions offered by banks and savings banks as financing aid. What despite being little in terms of money for self-employed, allows a source of easy and fast financing.
How to get loans for freelancers without endorsement
Self-employed entrepreneurs are the type of business that has the most difficulty in accessing credit to companies. They are, within the business fabric, the weakest and therefore the most risky for a bank or a financial institution and hence do not receive autonomous credits.
This causes that many small businesses with legal form of individual entrepreneur, have very difficult access to financing for SMEs.
And therefore can not undertake major investments, keys to be competitive in the current market, although it does allow them to finance overhead. Hence, some self-employed people have to finance themselves in the short term using the quick mini credits, since they do not require much paperwork and are easy to apply for.
Although the main problem is that the amounts of loans for self – employed people of this type are less than 500 euros and it has to be repaid in less than 1 month. Especially if we are talking about very difficult cases such as loans for freelancers with asnef.
The reason why individual entrepreneurs have to resort to quick loans for self-employed workers, is that by mixing business and entrepreneurial assets, they are the most risky in situations of economic or sectorial crisis.
But in addition to the mini credits for self-employed workers with asfelf, another form of financing for individual companies is the discount of promissory notes. Especially for companies with clients in the construction or industrial sector, which usually pay with bank promissory notes and that therefore facilitate the financing of self-employed workers by discounting promissory notes.
Although one of the preferred forms of financing are the Creditender loans for self-employed, something very traditional to make investments as traditional as industrial vehicles.
Since many freelancers are engaged in activities related to transport, construction or manufacturing and therefore need trucks and vans. Therefore there are many financing options, although not very good for being short term and small amount of money, to give credit for freelancers.
But if we focus on the form of more long-term financing, given that the mini-loans are easy to cover, with a very short term repayment term, they are the loans to the self-employed.
Hence, in the end they have to provide more guarantees than a company with a legal form of commercial company. That is why it is often essential to negotiate with mortgages for self-employed workers, in order to be able to obtain any type of long-term loan.
The problem is that the individual entrepreneur usually has to provide his own home as collateral for the mortgage loan. What puts the employer’s assets at great risk. And it is that for an individual entrepreneur it is very difficult to apply for autonomous loans without endorsement.
Because as we said to be the weakest part of the fabric of SMEs, almost all banks ask for guarantees and not only personal, as is the case of the guarantee but above all with real guarantees in the form of a mortgage.
Creditender loans for the self-employed
The financing for self-employed workers through the Creditender is one of the preferred ones by these and by the SMEs, especially by the smaller businesses.
The Official Credit Institute is a public entity that offers financing with better conditions than the loans offered by banks and traditional financial institutions. Although the Creditender is public financing, the truth is that it does not act as such, because Creditender loans for self-employed workers are granted through banks and financial entities that make their network of offices and risk analysts available to Creditender.
So in the end the same risk policies applied internally by financial institutions also apply to autonomous Creditender loans. Hence, many times, financing is not granted to individual entrepreneurs. Or even credit policies are canceled for companies with autonomous legal form to replace them with Creditender financing.
One of the characteristics of the Creditender credits for self-employed is that there are different lines according to the activity and the objective. From financing lines for SMEs to investment through those that offer liquidity to give money for current and current expenses, and even lines of financing that allow a small business led by a self-employed person to grow in new markets, through lines Creditender for export and internationalization.
But undoubtedly Creditender credits for self-employed people have been used mainly for investment of small assets by business entrepreneurs, usually industrial vehicles such as vans for self-employed workers.
But the financing lines for Creditender companies are betting on innovation and export, as pillars so that businesses can weather the crisis of the national market through technology that improves competitiveness and by selling in new markets.
Although given the situation of many companies with businesses in crisis, the Creditender has been offering liquidity for a few years to improve the treasury of the business and thus survive. Especially for those who can not sell in foreign markets or who act in traditional sectors where innovation is very difficult or even not possible.
How to refinance loans to self-employed without endorsement
As we have seen, the self-employed mix their personal and business assets, so it is very common for them to ask for money to use mortgages for the self-employed.
That is, the individual entrepreneur uses his home or business premises to obtain financing for the self-employed. All this causes debts to accumulate, both personal loans and business loans.
So in the end the only solution is the refinancing of debts. Unifying autonomous personal loans, credit cards, and the line of credit for self-employed workers in a single installment is the goal of reunification.
This allows multiple debts with different maturities and interest rates to be grouped in a single installment much lower than the sum of the individual installments of each one of the debts. So with less money you can pay the total debts and use excess liquidity to finance the business.
Not resorting to reunification is very risky for a self-employed person, because unlike companies with legal form of mercantile society, the individual entrepreneur responds to the debts of the business with his present and future personal assets.
In addition, loans for self-employed workers are usually the worst conditions they have, that is, their interests are high and amortization periods are usually very short. In addition, quick loans for self-employed people are sometimes used, which means that the financing amount is very low, even for less than 1000 euros, and in addition to their high interest, repayment terms do not usually exceed 30 days.
And just as with fast personal loans for the self-employed, the repayment terms on the cards are very low, which is also a very bad type of debt. And that means that in almost all reunifications credit card debts are included.
However, undoubtedly the main problem that individual business owners have is that when they confuse business assets with staff, they usually do not have savings with which to recapitalize the business.
Unlike the partners of a mercantile society that can give access to financial partners that provide private capital and thus clean up the company to reduce debts after increasing the amount of social capital.
But that option is not possible for an autonomous so you have to resort only option to refinance debt or find last financial solution as the bankruptcy in order to avoid personal and corporate bankruptcy.
Basically debt refinancing focuses on extending the repayment periods for debts, grouping them into a single loan whose interest rate is lower than the average interest on existing debts, as well as establishing some type of deficiency.
That is to say a period, normally between 12 and 24 months, during which the monthly installments only include interest. In other words, the amortization of the principal of the loan is delayed in order to reduce the amount of the monthly installments.
These three actions allow you to save time and reduce the money that is dedicated to paying the monthly installments of credits to self-employed workers. Allowing the business to be viable and allowing the self-employed person to save their personal assets, that is, their way of life and their homes.
But the problem of the reunification of loans is that usually additional guarantees must be provided. It is the only way for the lender to accept some of the above measures such as a grace period where no more than interest is paid.
Normally guarantees for reunification of personal loans for self-employed workers are real estate guarantees. That is to say that in refinancing they have to resort to mortgages for the self-employed.
Because the mortgage loan allows lengthening the repayment terms to be very long term loans, in addition to the interest rate is the lowest in the financial market.
So the refinancing of loans basically consists of unifying credit policies, personal loans, and credit cards, in a single mortgage loan. But in addition to including all the debts in a long-term loan, one must also include the expenses generated by a refinancing operation.
Because in any debt refinancing process you have to carry out studies and paperwork, especially when there are guarantees and guarantees in the form of mortgages for self-employed workers, and formalize the transaction before a notary and even, as in the case of mortgage loans, inscribe them in the Registry of the property. A large amount of expenses and costs that are normally included within the refinancing so that they can be paid in comfortable monthly installments.
The car pawn new financing for self-employed
Although it is not a very typical financing solution among self-employed workers, the commitment of cars, until recently known as a source of financing, is another alternative for the self-employed who have an industrial vehicle, for example a van.
The problem is that the individual entrepreneur usually has a single car that he uses for both private and business purposes. But in the case of companies with their own fleet of vehicles, they can get money without having to ask for autonomous loans without endorsement.
Because this new financing through the commitment of cars, is one of the new aid outside traditional banking. What allows access to money without resorting to autonomous credits without endorsement, which are almost impossible to achieve.
But as we said in the case of SMEs, it is easier to resort to the commitment of cars, because historically they have resorted to the purchase of vehicles through financial leasing.
Although in many cases the purchase of cars has been made by renting vehicles, usually when they were not cars without commercial vehicles. The difference between renting and leasing as a source of financing depended on the useful life of the vehicle. If it was shorter, renting was usually used, that is, car rental, while leasing was used with vehicles that the company preferred to acquire since its useful life would be longer.
For example, in the case of occasional trucks, it is more logical to resort to leasing. Anyway, the number and value of the fleet of vehicles of the company, be it a company or a self-employed person, will depend a lot on the money that can be obtained with the commitment of cars.
And for this you do not have to perform complex paperwork, you just have to carry out an appraisal of cars and industrial vehicles in order to know the current value of the fleet. And depending on how it is then get quick money, even in less than 24 hours, with the only guarantee of the fleet of cars.
That is to ask for money as it would happen with personal loans for freelancers without endorsement but, for amounts of money of more than 3000 euros and even 6000 euros. Thanks to the fact that the car is the guarantee of return of this type of loans for freelancers without endorsement.
So the car pawn is the best financing solution for freelancers that has another vehicle besides the private car. To be able to get a significant amount of money on credit without paperwork or endorsement, but especially without changing bank account. Since the autonomous loan guarantee is the industrial vehicle itself, car, or truck.