Anyone wanting to start a business needs money and security. But not only start-ups have to have fresh money, but self-employed people who have already started their own professional life can get into situations in which they urgently need to take out a loan. Are payment transactions stalling, for example due to open invoices? Do I have to buy new equipment? Are new premises and their equipment due? Then a self-employed person should think about a loan.
Loans in comparison
Before a self-employed person decides to conclude a loan contract, it makes sense to compare loan offers. A loan for the self employed is compared to reduced costs. In the following examples, the conditions are calculated according to the current status: A small loan in the amount of $ 10,000 and a repayment period of 60 months, the borrower pays an effective annual interest rate between 2.90% and 13.00%. The amount of the interest rate depends on the credit rating and the bank. If a client’s creditworthiness is already under pressure, the borrower must expect a higher interest rate. The average interest rate with a positive credit rating that everyone can see via Credit Bureau is 5.55%. The monthly installment amounts to $ 190.61. The total loan amount thus amounts to $ 11 436.79. The indication of a guarantor reduces the interest. In this way, the bank receives more security and is ready to lend its money cheaply.
Banks interest rates
Furthermore, the customer should pay attention to offers. At the moment, some banks offer the inexpensive interest rate of 2.90%, so in the example calculation the following conditions apply: $ 179.07 monthly rate with a total of $ 11,421.00. It is worthwhile to compare the loan for the self-employed in comparison because it can save costs. With a total of $ 50,000 and a term of 96 months, the interest rates vary between 4.40% and 9.25%. In the best case scenario, the borrower pays $ 616.79 per month with a total loan amount of $ 65 713.13. However, a maximum of $ 729.39 with a repayment of $ 70 021.43. Another loan for the self-employed in comparison. Loan amount: $ 100,000 – interest rate: 5.79% to 5.99% – term: 120 months – monthly installment: $ 1092.30 to $ 1101.77 – total amount: $ 155 429.15 to $ 155 549.69. A comparison of the exact loan amount, as can be seen here, is highly recommended.