Do you want to borrow money as a self-employed person? Do you need seed capital to get your business off the ground? Via mchservicesinc.com you can easily and quickly compare providers of self-employed loans. As a self-employed person it can sometimes be difficult to take out a loan. Banks set various requirements and conditions before granting a loan. By comparing the different providers, you can see at a glance what the different options are with regard to interest and the maximum amount to be borrowed as a self-employed person. You choose the loan that best suits your personal situation and take out a self-employed loan at the lowest interest rate .
As a self-employed person, there are various options for borrowing money. mchservicesinc.com recommends comparing all providers thoroughly. In this way you will find out which way of borrowing money best suits your personal situation. Moreover, comparing the various providers of a self-employed loan can be enormously rewarding and you can borrow money at the lowest interest rate. Before taking out a loan, check the following points for yourself:
By having the above questions clear to yourself, you are well prepared to apply for funding. It is important that the lender takes your application seriously and sees the potential to invest in your business. Always be fair and transparent in this process.
Starting freelancers
As mentioned above, it can be difficult for a self-employed person to borrow money. This is because banks set strict requirements before granting a loan to someone. Banks want to be sure that the amount lent plus the interest is repaid. As a starting entrepreneur you have little certainty to offer. As a result, you can not go everywhere to borrow money. Yet there are several options for starting entrepreneurs to borrow money. You can compare these different options at mchservicesinc.com.
What are the conditions?
As a self-employed person you cannot just take out a business loan. Banks set a number of essential conditions before they process your financing application. An important point to take into account is the BKR review. The Credit Registration Office registers all loans taken out in the Netherlands. By means of a BKR test , lenders are informed whether someone already has loans and / or whether there are payment problems. Before a lender can perform a BKR test, you must give permission for this. It is advisable to enter into this BKR review because the BKR ensures that your debts do not rise too high. Do you want to borrow money without BKR testing? This is possible with providers who are not affiliated with the BKR. This way you can still borrow money - despite a negative BKR registration. Always keep an eye on the risk of borrowing money. It is possible that you can no longer meet the repayment obligations and that a claim can be made on your private belongings. Therefore, always pay attention: borrowing money costs money .
What do you need?
When you turn to a lender to finance your business, they will not just lend you money. The bank wants to know why you want to borrow money, what you will use the money for and whether you are able to meet the repayment obligations. Many finance companies will therefore ask for the annual figures of your company. Based on these figures, they can estimate whether it is safe to invest in your company. In most cases it is requested to submit 1 or 2 consecutive annual accounts. As a starting self-employed person - who has just started your own company - you are therefore not able to meet this requirement. Do you still want to apply for financing? Then it is in any case necessary that you can prove that you are registered with the Chamber of Commerce. In addition, a good business plan can help you convince the lender to provide you with a loan.
Do you want to borrow money for your own company? Then this is always a tailor-made loan . You borrow an amount that perfectly matches your need for money. That is why it is important to make it clear for yourself in advance how much money you want to borrow and what you want to use it for. For example, do you want to realize a renovation? Do you need money to purchase the inventory? Or do you need revolving credit to create more financial space? Because there are different options when it comes to borrowing money, it is important to have the purpose of the loan clear. In this way you can choose a form of financing that best suits this purpose
When a business loan?
When you take out a business loan, you will receive the entire amount in one go into your bank account. A term, a fixed interest rate and a monthly repayment obligation are agreed in advance. This means that you repay a fixed amount to the lender in equal installments every month. Once you have repaid part of the loan, you can no longer withdraw the repaid part. This form of borrowing is - generally - used to finance one-time, large investments in the company . With the business loan you finance a long-term investment. The term and the maximum amount to be borrowed depend on the economic life of this investment. Because the loan is repaid linearly at a fixed interest amount, you will not be left with a residual debt.
Examples:
When a business credit?
A business credit provides financial scope. It is an amount of money that is ready for you and that you always have access to. This means that you can withdraw unlimited flexible money up to an agreed limit. So you decide when you need the money and how much you want to withdraw. You only pay interest on the money you have withdrawn. You also repay a portion every month with business credit. In contrast to the business loan, you can withdraw the money that you have repaid. You can therefore apply for a business credit for liquidity space or financing of small business assets .
You can absorb a temporary need for cash by means of a business credit. You agree with the lender to what amount you can be overdrawn. Once the need for cash is met, you can repay the business credit.
Examples:
It is possible that your application for a business loan or credit is rejected. For example, you may have negative equity, have not made a profit, have existing debts that are too high or have a negative registration with the BKR. These are all kinds of reasons for a bank not to provide you with money. If you cannot get a loan from a bank, there are alternative forms of financing. With these financing methods, the conditions are less strict and you can still get money with a high risk profile. These alternative forms of financing are already very active and popular among freelancers and starting entrepreneurs.
This form of financing is especially for small and starting entrepreneurs. After all, everything revolves around the combination of coaching and credits . Since the economic crisis, it has only become more difficult to get a loan or credit. Regular banks require an awful lot of security. Small and starting entrepreneurs often cannot offer these guarantees. This creates a specific target group that has little or no access to regular financing for their own company. The government wants to help this specific group of entrepreneurs by offering microfinance. Through micro credits, the focus is on coaching and financing small and starting entrepreneurs. You can apply for microfinance at Qredits .
In the Netherlands, entrepreneurship is stimulated in all kinds of ways . One of these is the provision of subsidies. There are numerous jars of subsidies that you as an entrepreneur can claim. For example, there are subsidies for specific branches (such as expertise and culture) or for specific applications (such as training and coaching of staff). If you are looking for financing as an entrepreneur, it certainly pays to examine the various subsidies. In addition to the various subsidies, the government also has all kinds of government regulations with regard to SMEs, such as the guarantee credit (BMKB) and the decision on assistance for the self-employed (BBZ).
What is the surety loan?
Is your company at a loss? Or do you have high debts? This does not necessarily mean that your company does not have a promising future. Still, banks are reluctant to provide loans and ask for a large guarantee to cover the risk. As a small or starting entrepreneur, you often cannot provide this large guarantee. That is why there is the surety loan (BMKB). The government guarantees your loan by means of the surety loan. The bank provides the loan. In this way, the surety loan is always part of a bank financing.
What is the Decree on assistance for the self-employed (BBZ)?
You can apply for the BBZ at the municipality where you live. You can apply for this form of financial support via a loan or as a supplement to income. The decision to provide assistance to the self-employed applies to you if:
Another way to finance your business is crowdfunding. By means of the crowd - or the masses - money is collected from a large number of smaller investors . Entrepreneurs place their project on a crowdfunding platform and interested investors can respond to the project. Before you start crowdfunding, it is important to first mobilize your own network. This ensures that you have already collected part of the necessary amount. Investors responding to crowdfunding projects are generally willing to take more risks.
With this form of financing you have an external factoring company - also called a factoring company - pay your outstanding invoices in advance . In this way, the cash flow of your company improves and the debtor risk is reduced. You receive the money from the outstanding accounts faster and the customer retains the same payment term. Factoring can be applied by both the small entrepreneur and the medium-sized SME. By means of factoring you will have cash more quickly because most factoring companies pay the invoice amount within 1 to 2 days.
Leasing is a convenient way to finance the use of company assets, such as a car, machine or computer. You can see leasing as a form of renting. You are, as it were, renting the resources you need to keep your business running. A leasing company finances the necessary equipment and you then rent it from this leasing company for a fixed amount per month. A distinction is made here between financial lease and operational lease .
What is a financial lease?
The leasing company purchases the asset for the full purchase value. You then lease the asset and repay it in equal installments. You take out a loan with the leasing company, as it were. With a financial lease you immediately become the economic owner, which means that you also bear the economic risk.
What is operational lease?
When you lease a business asset through operational lease, the lease company remains both the economic and legal owner. You pay a fixed amount per month against which you rent the business asset. You can also choose to purchase extra services. This includes maintenance, repairs and insurance. You do not become the owner of the object yourself. At the end of the lease period, the lease company takes back the asset or you can still purchase it at market value.
As you can see, there are various options for borrowing money as a self-employed person . However, it may happen that one form of financing is not enough for you. You can then choose to combine the various forms of financing. In this way, a stack financing is created. Are you unable to get the entire loan from one and the same lender? Then you can divide the required amount and engage various financiers.
When a bank or lender provides a loan, in most cases collateral is requested. A collateral is, as it were, an extra security for the bank. Are you unable to repay the loan? Then the bank will make a claim on the collateral. This can be, for example, a house or a car. Nowadays it is also possible to borrow money without collateral. Because these forms of borrowing money entail more risk, a higher interest rate will also be charged. The advantage of borrowing money without collateral is that no claims can be made on, for example, your home or company car. The disadvantage is of course the higher interest that is charged. Here, too, it can pay off enormously to compare the different providers. The interest rates vary considerably. mchservicesinc.com helps you to compare the different lenders and thus make the best choice.
At mchservicesinc.com you can compare money providers. We list the various lenders for you so that you can easily make a choice. You can always count on a fair and independent comparison . In addition, all conditions and interest rates are up to date. We keep a close eye on these so that you are not faced with unpleasant surprises. Before you take out a loan or credit, it is important to have a concrete plan. Are you unable to figure it out yourself? Then we recommend asking an advisor for help. When borrowing money, it is important that you take out a loan or credit that matches your wishes.
€ 2,000 to € 100,000
2.9% per month
Yes
No
No
No
No
€ 5,000 to € 250,000
1% per month + a surcharge of 0.5% - 2.5%
Yes, with a discount
No
No
No
No
€ 3,000 to € 500,000
0.7% - 2.3% per month
Yes
No
No
No
Sometimes
€ 10,000 to € 2 million
From 4.91% per year
Yes
No
For a credit from € 150,000
No
No
€ 3,000 to € 250,000
1.5% - 2% per month
Yes
No
No
No
No
€ 1,000 to € 50,000
4% - 15%
Yes
Yes
No
No
No
€ 5,000 - € 250,000
3.20% - 9.20%
Yes
No
No
Yes
No
As a self-employed person you know that you need money to earn money. By means of a loan you can make a certain investment, which in turn yields money. If you do not have sufficient resources yourself, a business loan offers a solution. By calculating the Return on Investment (ROI) - return on investment - you can see at a glance whether taking out a business loan is wise for your company. You calculate the Return on Investment (ROI) as follows:
Return on Investment (ROI) = (expected) return / investment (costs) x 100%
This way you can show the lender whether an investment is worth considering or not. In general, investors are not interested in investments that yield a negative ROI. The disadvantage of the ROI is that the percentage does not take the risk into account. For example, the lender can settle for a low ROI if more certainty can be offered.
Calculation example Return on Investment (ROI)
Suppose you want to purchase a number of machines with a total purchase price of € 50,000 . You expect these machines to earn you monthly income. The estimated income per month from these machines is € 1,000 for the next 10 years. As a result, the expected return from this investment will be 10 years x 12 months x € 1,000 per month = € 120,000 .
You must take out a business loan to purchase the machines. You must pay for the purchase price of € 50,000 and you take into account the costs involved in taking out this loan. Suppose your total investment is therefore € 68,000 (€ 50,000 loan + € 18,000 costs). The total profit from this investment is then € 120,000 - € 68,000 = € 52,000 . The Return on Investment (ROI) = € 120,000 / € 86,000 x 100% = 76% .
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