Getting loans for freelancers without endorsement is sometimes impossible, no matter the business or activity they develop. In the end, banks always prefer workers with a fixed payroll or retirees with a pension.
This makes getting an autonomous loan expensive and difficult. And paying a high interest is a problem added to others such as social security RETA fees, despite the flat rate.
In the end, small individual entrepreneurs with a legal form of self-employed workers are the ones that have the most difficulty in obtaining the credit without endorsement they need for their business.
Because in the case of a self-employed worker if he endorses with his house, which is the most normal thing, he can lose everything if the business goes badly. A risk too high for any worker on their own.
How to get a cheap loan by being self-employed
If you are self-employed and you feel identified with the situation that we have described above, do not worry because in Crédito SMS we have decided to give you these tips to get a cheap self-employed loan:
1. Use a credit comparison
In order to save time and especially money when looking for financing for companies, the best solution is to resort to a freelance loan simulator like the one offered by CreditText.
Because there are many banks and credit institutions that offer credit for self-employed and small businesses, but the conditions are very different. You can not waste time of your life or business in walking from one entity to another to know what are the conditions that offer you to give you credit as a freelancer.
Because sometimes credit advertising does not offer all the information you need to make a decision, and the APR sometimes does not include all hidden expenses such as commissions or linked products.
That’s why it’s so important to use an online loan comparison and then read the fine print of the credit agreement that best suits your personal and financial situation.
In our comparator you can find loans for freelancers from SCUA, Caizer, or Banpolar. Keep in mind that almost all banks are interested in acquiring autonomous customers, because they can sell other related products such as renting or insurance for their industrial vehicle.
In any case, among all the loans for freelancers, the best solution is ICO credits, what happens is that many financial institutions prefer not to offer them to their autonomous clients because they are cheaper loans.
In summary, if you are a self-employed worker with high RETA and you need money for your business, look for and compare the best offers in freelance loans with an online simulator.
2. Contract products linked to credit without cost
Linked products are a way to increase the profitability of financial operations. Many banks require you to take out life insurance when signing the autonomous loan. What makes the cost of your credit increase.
So if you are an employee, keep in mind that there are other links without cost that can also be interesting for the bank. We refer for example to the domiciliation of the receipts of the social security quota of the self-employed, as well as to the payment of taxes, social insurance TCs, or payroll of the business.
Also some financial entities, such as Caizer and its business account for the self-employed, in addition to domicile payments, request a monthly income or minimum balance. They are links that will not cost you money, because in the end you have to do it with a bank. But that will allow you to negotiate better with the entity in order to get a cheap self-employed loan.
In the end, add up all the expenses that the financing for your business supposes in order to assess which is the best loan for self-employed: interest, commissions, cost of linked products, etc.
3. Return the loan in less time
In the end the term of return of any loan is a decisive factor in order to know what the total financial cost is. The longer term, higher interest. No matter the interest rate, the higher the interest will be.
And as we said before, interest rates on autonomous loans are not exactly low because they have a higher risk because they lack fixed income of the payroll or pension type.
Therefore if you want to pay less for your business credit, it is best that the refund or early cancellation fee is as low as possible, between 0.5% and 1%, or even nil. This way you will be able to destine excesses of money of the business to the partial or total cancellation of the loans for freelancers and thus they will leave you cheaper.