Self-employed loans now easier.

 

In current economic conditions, accessing financing has never been so easy.

In current economic conditions, accessing financing has never been so easy.

The low interest rates that govern the market make it easier for many groups to obtain resources with which to continue their economic activity. Among them, the group of self-employed workers stands out, one of the hardest hit by the crisis, which has diminished their ability to obtain financial resources.

In this sense, the situation has improved significantly during the first quarter of this year 2015. According to a survey carried out by the Cream Bank, the granting of loans to Spanish professionals and SMEs has approached for the first time so far in crisis European SMEs if measured by the rejection rate, 11% in the case of Spanish SMEs and 12% for the rest of Europe.

In addition, and according to a report published by the Fitch rating agency, it is expected that delinquencies in bank loans will fall around five percentage points compared to last year, thanks to the marked decrease in delinquencies of those self-employed and SMEs related to the construction sector, which have reduced their delinquency rate to 8% compared to 10% the previous year.

These are certainly encouraging data as a result of the improvement in the expectations of the Spanish economy and the necessary deleveraging process that for a few years has been increasing the solvency of entities and individuals in general, in addition to aid in matters of financing that the Cream Bank is providing with its liquidity injections to the system.

Irregular income, the great handicap for self-employed professionals

Irregular income, the great handicap for self-employed professionals

One of the biggest problems that the self-employed people find to access bank financing is related to the irregularity or discontinuity in the income obtained over time, with stages where the income is more or less regular and with others where it is difficult, not to say impossible, get work ahead due to lack of opportunities.

In these circumstances, banks are still reluctant to lend, especially considering that we have not yet fully emerged from the crisis. However, the self-employed and SMEs are filling this handicap with alternative sources of financing that serve to grow their business.

Collateralized loans remain the problem

Collateralized loans remain the problem

In any case, as has always happened, guarantees are the biggest problem for the self-employed. The need to provide a guarantee with which to guarantee the payment of the loan has left many self-employed in bankruptcy, with a debt for life and with few real possibilities of recovering.

However, with the Second Opportunity Law promoted by the Government, a way is enabled by which any self-employed person can access an extrajudicial payment procedure with which to obtain more advantageous conditions, agree to moratoriums on payments of up to three years and withdrawals up to 25%. It is a possibility that tries to eliminate the fears that all those natural persons who carried out a professional activity on their own had, by exonerating the self-employed person from all liability in case of insolvency.

So is it easier now?

So is it easier now?

The legislative measures in favor of natural persons, together with the better economic prospects and the opening of the credit tap by commercial banks thanks to the almost free financing of the Cream Bank, are good news for self-employed workers, who will be able to access credit in better condition.

However, it is advisable to consider what are the best financing options before accessing what a financial institution offers.

5000 USD loan – a bank offer.

When it comes to taking out 5,000 USD in credit, it is worth comparing the loans to find out which bank can take out the 5,000 USD on the best terms. Many consumers already know that a credit comparison is the best way to compare banks’ offers. Nevertheless, there are always questions that we would like to answer here.

Make optimal use of the loan comparison

Make optimal use of the loan comparison

Anyone who makes a loan comparison must know exactly what is important in the loan comparison. There are several comparison portals where different providers are listed, without the consumer being able to enter their own wishes. Qualified loan comparison portals, in which the consumer can specify the loan amount and the term, are much better.

This changes the ranking, because a bank that takes the top position when it comes to a loan of 5000 USD and a term of 36 months does not have to be at the front when it comes to a loan of 5000 USD and a term of 72 months. In principle, these qualified comparison portals give the customer better information and really find the provider with the greatest savings potential.

Our loan comparison is designed for a term of 36 months. Here we are in first place in comparison Barclaycard. Unfortunately, the acceptance rate at Barclaycard is relatively low at only 45 percent. The Infra bank in second place has an acceptance rate of 55 percent and a rate of almost 150 USD for a 36-month term. In third place is the Creambank, which scores best here with an acceptance rate of 80 percent. Our loan comparison is variable, so that you have the option of entering other terms and finding providers with cheap offers.

Watch out for interest rates dependent on creditworthiness

Watch out for interest rates dependent on creditworthiness

Many banks today advertise with interest rates dependent on creditworthiness and many unsuspecting consumers fall for these cheap offers. That means that a 5,000 USD loan, which is advertised with 3.90 percent effective interest, is not automatically granted to every borrower at 3.90 percent. The applicant’s creditworthiness is decisive for the actual interest rate. The representative example that the banks have had to publish since the introduction of the consumer credit directive in 2010 provides a brief orientation.

5000 USD loan with fixed interest

5000 USD loan with fixed interest

It can often be more convenient for borrowers to focus on fixed-rate deals from the start when comparing loans. Firstly, no personal offer has to be obtained here, and secondly, the interest, especially when it comes to only 5000 USD, is usually cheaper than for loan offers with interest rates that depend on creditworthiness.