Many people who are thinking about cash loans for the self-employed for the first time ask themselves: How can a bank or a financing partner even grant a loan without proof of income in the form of a wage or salary slip? The answer to this is more complicated and expensive than the loan for employees. For this reason, many new banks and financing partners added cash loans for the self-employed to the product portfolio a little later.
The special features for cash loans for the self-employed
If banks and financing partners want to calculate a fair, risk-appropriate interest rate, then they must be able to calculate a probability of repayment. Then, due to the strong competition, very good debtors get an even lower interest rate – with a correspondingly lower margin for the bank. However, in order to be able to estimate the monthly income, the bank cannot rely on a pay slip!
That is why she is looking for receipts or documents with a similar informative value: Instead, you can submit the business evaluations (BWA) of the tax advisor or the income tax assessment of the previous year. The bank can make a forecast of the income from both documents and calculate something similar to a monthly budget surplus. In any case, the bank sees whether your company has already left the “red numbers” area and is already on a growth path.
Is cash payment really advisable?
Carrying a larger payment or a loan home in cash is certainly an interesting experience. The value of the money becomes noticeable and the sum can also be grasped mentally. However, the editors see the actual, immediate cash payment as a certain inconvenience. Instead of making a domestic transfer overnight, the money is transported itself.
If you as an entrepreneur then pay an invoice in cash, you also have to write a cash payment receipt again. In addition, some banks already have a logistical problem with cash payment: some bank branches have reduced the opening times of the cash counter so that afternoon payments and withdrawals are only possible at ATMs.
Therefore, a cash credit for self-employed is possible, but due to its small time advantage of only one working day, it is not a really happy or time-saving solution.