The self-employed must be mobile so that important appointments can be made at a distance from the place of work. As a rule, public transport is not sufficient for customer care due to time constraints. Mobility and flexibility are particularly important for young companies. Nevertheless, no entrepreneur wants to invest the already scarce equity in one go in the purchase of a car. Many banks therefore offer auto loans for the self-employed on special terms and conditions.
Find the right contact person
Due to the fact that the self-employed understandably cannot provide a regular income, the bank assumes a higher credit default risk. In this context, only selected bank employees are authorized to approve or reject auto loans for the self-employed.
In addition to the car banks of the respective manufacturers, some independent banks offer such a financing model. In the meantime, numerous providers advertise this complex form of financing on their own company website or on comparison portals. With the latter, the interested party can get a first overview of the currently valid offers. It is usually helpful to look for bank recommendations in forums or among customers.
A considerable additional effort for the self-employed
This type of financing represents a special form of financing for credit institutions. In general, business customers are initially welcomed with open arms at banks. However, processing takes a little longer than for private customers who only have to submit a household bill and proof of income for reasons of creditworthiness check. The documents are not sufficient in the case of B2B transactions.
As soon as auto loans for the self-employed are applied for, the banks require an extensive smorgasbord of company-relevant business documents, which reflect the financial situation in detail. The bank can only decide on the approval of a car loan if it has information from business information files such as Bürgel or Creditreform as well as current BWAs. Business start-ups must expect that even stricter requirements for information will apply.
The chances for a permit
Because of the higher risk of default on the loan, credit institutions are particularly vigilant and have developed numerous mechanisms to reduce the risk. The basic requirement is that the self-employed have been working for more than three years. If an application is approved, a VAT rate of 25 percent is usually required.
The self-employed, who predominantly use a car for private purposes, have a much better chance of receiving the desired financing amount, taking into account a good credit rating. In this regard, the applicant is asked by the lender to take out residual debt insurance. As a result, the chances of a permit increase considerably.