A loan with a negative Credit Bureau for the self-employed is almost impossible,
Two different aspects meet here, which are very negative for a borrower. On the one hand, the self-employed at banks are by no means considered ideal customers, which is mainly due to the very fluctuating income. Because a self-employed person can show enormous loss of income at any time without this being automatically compensated for.
Failure to receive orders or high costs in one’s own company also affects the income of the self-employed. This is reduced with the success or failure of your own self-employed activity, which is why a loan rate can quickly become unsustainable if income is reduced within a very short time. Self-employment can also be completely eliminated at any time if the company has to file for bankruptcy or if the person comes to the conclusion that self-employment does not bring the hoped-for success.
If the term for the loan with negative Credit Bureau for the self-employed is relatively long, the risk for banks is extremely high that exactly this case actually occurs. As a result, it is often rejected unless the borrower can also provide a guarantee that provides additional security for the lender through his own credit rating.
Credit Bureau registration also problematic
Like the amount and type of income, the nature of the Credit Bureau entry also plays an important role in evaluating the creditworthiness and the associated credit limit. If the internal rating at Credit Bureau is already negative, precisely because there are too many negative entries, a rejection can also be made on this basis. Then a Credit Bureau-free loan would have to be chosen, which is offered, for example, by Swiss banks up to a maximum amount of around 3,000 USD.
The credit line for the negative Credit Bureau loan for the self-employed, provided one is actually issued, is of course always dependent on the amount of income. The easiest way to obtain a loan with a negative Credit Bureau for the self-employed is via private lenders, since they issue a loan to the borrower regardless of their creditworthiness – at least if the lender and borrower maintain very good contact.
Third-party investors are less willing to take risks, which is why self-employed people with a negative Credit Bureau could also have problems with borrowing here. A guarantee is very rare when borrowed from a private lender, which is why it is generally strictly rejected here. How willing the private lender is to take this risk always depends on the individual case and the available assets.