Current account credit for the self-employed.

 

Debt rescheduling for self-employed persons?

Debt rescheduling for self-employed persons?

A current account overdraft for self employed enables a liquidity reserve to bridge financial bottlenecks. Due to the high interest costs, a company should use a current account loan only in the short term. A current account overdraft is usually used by self-employed persons as a bridging loan from a bank or a bank and is not earmarked, which means that this loan represents a special form of liquidity reserve for the entrepreneur.

But beware: a self-employed overdraft facility should only be used on a short-term basis. If a self-employed current account loan is over-used or under-utilized, that’s the wrong financing. Because for the current account loan is too expensive. There are much cheaper financing options. It depends on the purpose, whether you need a current account loan for investments or working capital financing.

Gladly we help you with the rescheduling of a current account credit in a cheaper loan of Cream Bank or promotional bank of the state, even if the house bank refuses a loan!

Credit advice, if banks reject!

  • favorable government loans by Cream Bank with indemnity
  • Rescheduling expensive current account credit
  • Order pre-financing and increase warehouse
  • Guarantee of the guarantee bank if the collateral is too low
  • Capital raising for other purposes
  • Consulting cost subsidy 50% to 80%

There are banks that still finance if the house bank refuses!

Credit advice, if banks reject!

  • favorable government loans by Cream Bank with indemnity
  • Rescheduling expensive current account credit
  • Order pre-financing and increase warehouse
  • Guarantee of the guarantee bank if the collateral is too low
  • Capital raising for other purposes
  • Consulting cost subsidy 50% to 80%

There are banks that still finance if the house bank refuses!

Similar contributions Current account loan for the self-employed

> Current account credit for self-employed companies

> Management consultancy for the self-employed and craftsmen

> Instant loan for self-employed without Schufa

> Credit for debt restructuring

Table of contents Current account credit for the self-employed

  • What is a current account for self employed?
  • Important features of a bank overdraft
  • Rescheduling current account credit for the self-employed
  • What is a current account loan?
  • Special features of a current account loan

Important features of a current account loan for businesses

With a current account framework, a company has the unrestricted ability to bridge economic bottlenecks. There is also no purpose for the funding framework. But beware: A company should under no circumstances cover the current account! Because for every overdraft of the current account the bank announces this to the Schufa information! Such a Schufa entry is not “bad” at first! But if the company wants to change the house bank, then sees a new house bank immediately the Schufa entry. It is assumed that you, as a trader, are overwhelmed with your liquidity planning and may not meet your financial obligations.

Therefore, our recommendation to increase the current account in case of liquidity shortages, or to apply for another loan, for example a liquidity loan.

The current account loan for the self-employed

  • is freely available for all cost types of the company
  • the current account credit can be repaid at any time
  • a low interest charge, if claimed only short-term
  • The current account framework for corporations is granted for an indefinite period

Especially for a self-employed person or for an entrepreneur, it may be advantageous that a sufficient current account loan from the credit institution was granted on his business giro account. This means liquidity for a business enterprise and thus the ability to pay is ensured.

The current account framework should be used for short-term order pre-financing and for late receipt of customer receivables. Any other funding needs should be funded through other loans.

Rescheduling current account credit for the self-employed

Rescheduling current account credit for the self-employed

The overdraft for the self-employed is a short-term form of financing. Banks can only refinance themselves in the short term with a current account loan. Therefore, the interest is more expensive than a normal loan. So far so good!

If a current account credit is claimed only in the short term, then that is not significant. It is different if investments or growth loans are financed via the current account framework. These are long-term loans and do not include over-funded current account credit! But here is the “shirt closer than the pants” at the banks. After all, banks earn considerably more on the current account overdraft than with a standard entrepreneur loan. That’s why they prefer to increase the self-employed current account rather than recommend a long-term loan through Cream Bank or a promotional bank of the federal states.

But that does not have to stay that way, because every company has to work economically and make a profit if it wants to survive in the market in the long term. And this includes taking a look at the cost structure of a company.

As a result, loans such as stockpiling, on-going contract pre-financing and, above all, investments in long-term loans or loans with moderate maturities and favorable interest rates are required.

What to do if the house bank does not want to repost the overdraft for the self-employed?

Normally a house bank tries to keep a high current account credit. And most of the time the house bank succeeds, because few entrepreneurs change their house bank. But if the key figures in the company are good, then every other bank is interested in the company and finances it with the desired loan.

When looking for a new house bank, it is an advantage to have a business concept that we create in a loan advice for the self-employed.

What is a current account loan?

In the case of a current account loan (also known as employee or disposition credit), the bank grants the borrower a credit line. This is a maximum amount that indicates up to what amount of credit the borrower may overpay his current account. This loan amount can be used by the borrower at any time.

The current account credit is therefore an overdraft and is tied to a checking account as a business account. The Account Owner then pays interest only on the amount for which the checking account has been overdrawn.

Special features of a current account framework

The current account credit is the repayment credit of a company. The lending takes place in cash and is subject to the conditions under the Banking Act. The borrower receives the loan in a contractually agreed loan amount, which is also known as the credit limit.

The credit limit can be fully utilized by the borrower in the agreed amount. The amount of the loan depends on the monthly income of the current account holder. To use a current account credit, the borrower must set up a corresponding current account.

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