Taking out a loan for the self-employed for rescheduling may be very difficult, because the creditworthiness of the self-employed is very bad due to the loan that is already running (or even the loans that are already running), which is why further borrowing, even if it is to be used for debt restructuring, is very difficult becomes. To make matters worse for the prospective borrower, the self-employed person with his uncertain and variable income is not necessarily one of the ideal candidates from the bank’s point of view for borrowing, because unlike employees, workers or civil servants, the bank can do a lot for a self-employed person planning worse, which is why longer terms are usually avoided.
Creditworthiness of the self-employed
However, if a loan for the self-employed is required for debt rescheduling, the loan amount is often relatively numbered due to the aspect of debt rescheduling, which is why a short term is hardly possible if you as a borrower do not want to pay huge monthly installments over a short period of time. However, since income as a self-employed person can disappear completely at any time, namely if your own company gets into trouble or simply no longer receives orders, banks hardly have any understandable planning security for evaluating the creditworthiness. A self-employed person who is currently still earning very well can hardly have an income relevant to the credit due to changed market conditions and an entrepreneurial imbalance, almost a week later. In order to convince the bank of the suitability for a loan, continuity is particularly important for the self-employed.
Put self-employment in a framework
Income, with a view to the amount, is not actually the problem for most self-employed people, it is much more important that the income is simply not always at the same level. It is therefore worthwhile for the loan for self-employed to reschedule debt if the self-employed activity has been carried out successfully and with continuity for several years. This also gives the bank a certain amount of trust towards a borrower, which in turn can lead to the release of a loan. It is also worth telling the bank openly that the loan will be used to reschedule other loans.
The bank at least knows that this is not another consumer loan, but the borrower is trying to reduce his own costs for the current loans. Although this is by no means a guarantee that the loan for self-employed persons will actually be issued for debt rescheduling, persons affected should try it first. The use of a non-binding and free loan calculator, which also directly shows the acceptance rates of the individual lenders, is useful for finding cheap loans. This enables self-employed people who already know about their somewhat shaky creditworthiness to search specifically for providers with a high acceptance rate.