A negative Credit bureau information makes borrowing difficult, but contrary to a widespread view, it does not necessarily exclude it. In the case of the self-employed, a distinction must also be made between borrowing for private purposes and a loan application for entrepreneurship.
Privately caused negative entries and the operational credit
In most cases, the bank approves a business-related loan for the self-employed despite a negative Credit bureau if the entrepreneur presents it with a well-developed business plan or a comprehensible refinancing plan. It must be clear from this that the investment to be financed leads to profits within a reasonable period of time.
The private creditworthiness of the entrepreneur plays a subordinate role in the case of commercially induced loans, so that if the prognosis is good, a loan is given to the self-employed despite negative entries. The borrower only has to take care that not every bank issues commercial loans. Most corporate loans are provided by local Lite lender as well as the large private commercial banks.
When a company is founded, promotional loans from Intrasavings bank are also accessible, with only hard negative characteristics being grounds for exclusion. In the case of a Intrasavings bank promotional loan, repayment generally begins after one year at the earliest, and a corresponding agreement can be made for commercial bank loans.
Private loan despite negative Credit bureau entries
In spite of negative Credit bureau entries, a privately arranged loan is more difficult for self-employed than to obtain a business-based loan. Most Best banks, which grant loans without Credit bureau, exclude self-employed loan applicants from lending because they consider their income to be unsafe enough. To a large extent, German direct banks only grant loans to employees with a fixed income, so that the self-employed can take out loans from a small number of banks anyway.
If the self-employed need a loan for private purposes despite a negative Credit bureau, it is best to contact a local savings bank or a regional Cream bank and ask for a loan interview there. Such a discussion offers the opportunity to explain that the financial situation has improved since the negative Credit bureau application was forfeited. This is particularly credible if the self-employed currently achieves a good profit through his company and at the same time was in a difficult economic situation at the time of the Credit bureau entry.
If the bank initially refuses to grant the loan due to the Credit bureau entry despite a demonstrably improved financial situation, there is often subsequent approval if the self-employed person provides a surety. A positive Credit bureau information and regular income are required for the guarantor. Another way out is to borrow from the self-employed with negative Credit bureau entries through a pawnbroker, because a pawnshop does not make a Credit bureau request due to the collateral provided by the pledge.