Foreign loans are still used in German as a loan, which can be sought especially if the German banks were rejected because of a bad Private Credit. Nevertheless, foreign loans are by no means awarded “just like that”, but are sometimes subject to even tighter examinations than would be the case with a German lender.

The foreign credit for self-employed is effectively hard to obtain, because even with a Swiss loan, self-employed people do not meet all the requirements that are imposed on their borrowers. In addition to the foundation, namely that there is no disclosure, these also include a certain minimum and maximum age of the borrower. Currently, even if they can differentiate among the banks, these are a minimum age of 18 and a maximum age of 55 or 58 years (depending on place of residence).

In addition, a regulated income must be presented in a certain, fixed amount, which has been accordingly received in the last 12 months. This clause, on the other hand, ensures that foreign credit for the self-employed is hardly an alternative.

On the one hand, income usually fluctuates depending on the order situation or the turnover achieved; on the other hand, the income from self-employment is not as secure as with a person in permanent employment. The consequence is that self-employed in foreign loans have little chance to get it, even if the irregular income is above the German average of a classic employee.

The Private Credit as a stumbling block

The Private Credit as a stumbling block

The self-employed are generally not welcome borrowers because of their uncertain financial situation. In Germany, however, rejection tends to be mostly based on the negative entry in Private Credit, so the opportunities for borrowers working on a freelance basis are often even higher when looking for a German lender who refrains from asking Private Credit.

Because of the unsecured and irregular income, there is hardly any creditworthiness abroad worth mentioning, which is why foreign credit for the self-employed almost always results in a rejection, unless the bank has specifically targeted these cases. Since the application for foreign loans can be made directly online, the credit is certainly worth the try, but should not necessarily be expected with a positive feedback.

However, when a loan is urgently needed, the self-employed usually have to look around on a private basis. Either through private loan portals, which mediate private lenders with private borrowers, or just in the circle of friends and family. German banks can also provide one or more additional security (s), such as a guarantee or vehicle registration form for their own car that has already been paid for. The loan is so complicated, but not impossible.

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