The start of self-employment is often accompanied by financial constraints. The customer base is still small, but the investments are all the greater. For example, those who want to set up a practice or law firm face the problem of financing.
Banks are generally skeptical
In order to get the money from the banks and savings banks, a lot of persuasion and usually collateral are required. Anyone who can show no real estate or similar goods must convince with a detailed business plan. A business evaluation of any activity that has already taken place and a total profit forecast are part of the required documents. There are advantages to those who can take over the customer or patient base of a predecessor.
Financing for freelancers can also be done through loans without credit checker information. Banks that offer this variant of the loan can pay their default risk well. Interest rates are significantly higher than the usual interest rate for installment loans.
Guarantees are not uncommon. The guarantor is liable with his capital for the borrower’s debts. Even if trust in the business idea is great, guarantors and borrowers should be aware that every business can slip due to external factors. The guarantor is then in debt, even though he is not responsible for the crisis.
The state-owned best credit company bank offers support programs for start-up companies. If you have a good concept, you can benefit from start-up loans in various forms and grants, from USD 4,500 for professional coaching to USD 10 million for the complete solution.
Find strong partners
Funding for freelancers sometimes requires creativity. In this way, partnerships in law firms and practices of non-specialist but complementary professions can attract customers and generate financial success.
In addition to the banks, lenders can also be relatives. When granting credit, it should be noted that interest-free loans are also subject to a notional interest rate from the tax office. The advantage of this is that the borrower can deduct interest as business expenses, the lender may have to tax the interest he receives.
In any case, loan contracts should always be recorded in writing. Another form of financing for freelancers is silent participation. The financier participates in the company’s profit through a – usually profit-dependent return – but does not appear as a business partner.
So freelancers don’t have to stick their heads in the sand if the first bank refuses to approve the financing. Diverse options can get the business going. Those who plan well with their ideas are the quickest to convince.