Having money is the shortest path to making money, and as an entrepreneur you probably know it.
A loan on time can be the salvation of your project, but it is not always easy to receive one
What are the methods that freelancers prefer today to have the desired financing?
In the case of people who work in a dependency relationship, the facilities to obtain credit abound. But those who work on their own, what is known as freelance, especially in the field of technology, have historically encountered problems obtaining financing. Even so, There are different possible forms of loans for the self-employed, so we review some of them and their characteristics.
Of course, this is nothing more than a legacy of traditional financial systems, which were not prepared so that so many people did not depend on a permanent job but on their own income.
Usually, lenders are less likely to lend to those who do not have “sure” earnings. Many times they don’t even grant them to those individuals. In other cases, they offer them but with certain cuts.
So, how to achieve the desired financing?
Having made this introduction, we can affirm that the fact that someone works on their own does not mean that it is impossible to obtain a personal or commercial loan, but that they must make an effort when looking for credit. Normally, these financial services have less advertising than the classic ones, and that makes it difficult to find them.
If you are wondering about the types of loans that are available to self-employed people, let’s see some of the options you have, which we are sure will be very helpful.
Individual Loans
To be eligible for this technique you must have a good credit history, so start developing it now. Basically You have to pay everything with a credit card, paying your expenses up to date to show solvency. Over the months and years, the entities that lend money they will understand that you are someone trustworthy.
guaranteed credits
If the above does not work for you, the loans in which the accumulated value of your properties is considered may be. The properties are taken as collateral for the credit money, and the interest rates are usually accessible. Of course you will have to have a home or office in your name to enjoy these kinds of opportunities.
Guaranteed loans
As its name indicates, in guarantor loans there is someone who acts as guarantor and is responsible for us. We could say that that person “lends” his credit history so that another can enjoy the benefit.
business loans
And finally there are commercial credits, in which it is the firm that acts as guarantor of the loan. Evaluating all the financial statements of the business, an amount will be provided according to your economic situation.
How to receive the loan if you work on your own?
Loans for the self-employed They are managed similarly to the credits requested by a stable worker. Basically, you will have to analyze your financial information, verify that you are eligible for the loan and, Obviously, compare which are the credits that are best for you based on their fine print.
It is essential, in self-employed loans more than in any other even, that you check very well what the payment terms are, the interest that is applied, and other details, so as not to surprise you when it is late.
Remember that as a freelancer, you are borrowing money without as much of a financial back as other workers. Therefore, it is likely that whoever is about to lend you that amount wants to make sure they do not lose anything.
Are there loans for freelancers with bad credit history?
A loan made to someone with a bad credit history or shaky finances is simply known as loan with bad credit, and although it is not impossible to get one approved, it will cost you a lot.
The good news is that this is changing little by little, and there are already many organizations that guarantee these credits with restrictions such as lending small amounts and higher fines for eventual non-payment.
conclusions
Sometimes the freelance life is more challenging than rewarding, but luckily things are looking up. Receiving the sum you need should not take much longer than what is minimally necessary.
Currently, we have a wide variety of solutions to obtain individual or commercial loans, citing only two of the modern alternatives that the market provides if you own your own business.
If what they can lend you right now is not enough for your aspirations, there is always the possibility of trying to earn money thanks to the many ways that exist to do it through the Internet and by other means.
What other ways to obtain financing beyond those already mentioned here come to mind?
