Getting loans for the self-employed with negative private credit is anything but easy. Often this is completely impossible. Most importantly, the fact that a person who has neither a permanent position nor a positive private credit, under no circumstances meets the conditions to receive a normal installment or credit line from a German bank or savings bank.
Prerequisites for a loan
Almost all banks require a regular income from their clients and a positive or neutral information from private credit. It is not enough if only one of these two conditions is met. An exception is only the Swiss banks, which give their installment, consumer or car loans even without private credit. The problem is, however, that this applies only to employees, civil servants or pensioners and not to the self-employed, the liberal professions, the students or the unemployed.
Another possibility would be to seek through a credit intermediary suitable banks, which would be willing to give loans for self-employed with negative private credit. There should never be any fees paid in advance. When a credit intermediary insists, it is almost always a sign that he is dubious and is interested only in his own profit and not in credit.
Personal loans have some advantages compared to bank loans that should not be underestimated. Thus, not only the disbursement, but also the repayment modalities can be regulated individually and are by no means bound to such strict requirements, as is the case with domestic or foreign bank loans. Regardless, any person seriously interested in borrowing should consider carefully whether they really qualify to repay the loan properly.
This should always be problematic if there are already negative private credit entries, old debts must be paid or the income from self-employment is very low. Loans for the self-employed with negative private credit always represent a very special vote of confidence, which must not be disappointed.
Self-employed and Hartz IV
Similar to marginal employees or employees, self-employed and freelancers also have the opportunity to increase their earnings through supplementary Hartz IV benefits. Under no circumstances should they be denied this, even if self-employment has existed for several years and has never generated enough income to make a living from it.
The individual Hartz IV needs are determined after the application has been submitted to the job center and checked at regular intervals. Self-employed Hartz IV recipients who are in a special financial emergency may have the opportunity to receive an interest-free loan from their job center.