Loan for self-employed – what will you need when applying for a loan?
Loans for self-employed people are not as difficult to obtain as many people think. However, it will usually mean the need to submit more documents than for example an employment contract. Lender, bank or loan company, it has to verify the creditworthiness, and in the case of self-employed people this process also involves examining the liquidity and financial condition of the company.
Mortgages and cash loans for self-employed workers – are they possible?
The two most popular types of loans most Poles use are undoubtedly mortgage loans and cash loans. Running your own business, i.e. working on the principle of the so-called self employment , we can also apply for the above loans. However, we are bound by different and slightly more complex rules. First of all, the condition for granting a loan to self-employed workers is a thorough examination of the financial condition of the business activity. In practice, this means that the lender will verify the current financial situation of the company and its functioning, and in some cases even the area of operations. The lender or lender will be interested not only in the amount of your income, but also timely payment of liabilities to ZUS and the Tax Office.
Certificates needed to get a loan for self employment
Therefore, when applying for a loan, a self-employed person is required to provide a number of documentation on the company’s operations. In general, banks require more certificates and documents than loan companies. Of course, a lot depends on the amount of the loan or loan, the repayment date and the history of cooperation with the company. Below are the most frequently required documents, which are most often needed when applying for a loan or business loan:
- confirmed entry in the business register (CEIDG),
- certificates from ZUS (Social Insurance Institution) regarding the lack of arrears in paying contributions,
- the original certificate from the Tax Office competent for the entrepreneur, which will ensure that he has no tax obligations and that there are no pending tax procedures against the entrepreneur,
- History statement from a company bank account (or personal if you do not have a separate company account)
- PITs, i.e. tax returns from recent years (the type and number of PITs depends on the nature of the business)
- profit and loss account or excerpt from the book of revenues and expenses (depending on the form of business, the form provided by the entrepreneur from CEIDG applies)
Is it better to decide on a loan in the company or a loan for self-employed in the bank?
There is no definite answer to this question – in each case, it is worth comparing the loan offers from loan companies and bank loans for persons conducting business. Much depends on the amount we want to borrow and how quickly we need the funds. If it is a pressing need and money needs to be organized overnight, then the bank is unlikely to succeed.
When a self-employed person is looking for a mortgage for a larger sum of money, the lender will be the bank. However, this does not mean that the loan company will not help us. Many companies associated with loans are also banks’ brokers, and their advisers can help us choose the best solution from many products. A bank employee cannot present offers to several lenders.
Regardless of who the lender is , a self-employed person will always have to provide more documents than, for example, a person employed under a contract of employment. Apart from additional formalities, however, there are no other differences that would make it difficult to take a loan . Therefore, having constant income from business activity, we do not have to be afraid that we will not get a loan or loan anywhere.