All the information about Loans to self-employed without Aval
In contrast to this context, there are currently other routes specifically addressed to these self-employed workers; through microcredits without endorsement.
A microcredit is a loan of a smaller amount of money that is aimed at people with few resources and who are unable to finance themselves through the traditional method. This way is a strong root of struggle against the difficulties exposed by self-employed entrepreneurs, against the exclusion of the working world from those with great ideas and enthusiasm for working and against the situation of many people who are trapped in unemployment because have resources to create a small business.
The decision to request this type of quick credits without payroll or endorsement should not be taken lightly because according to what situations the advantages may be greater or not. Obviously, the need for a guarantee is the main advantage because the concession is based on the viability of the business. However, other advantages that benefit the freelancer appear:
• Quotas that tend to be more flexible in terms of amounts and time ranges
• A financing with determinations that tend to be more advantageous than other loans and flexible in terms of groups.
• The evaluation of the business plan by experts and professionals in the sector allows you to get advice and information to improve your idea.
As we can see, the advantages are striking and appetizing, but what are the disadvantages faced by the self-employed when applying for a loan without an endorsement?
• Microcredits granted since the beginning of the crisis have been reduced significantly due to the increase in the number of defaulters in this country. In contrast, the number of applications has gone up and now obtaining this type of loan can become difficult.
• Depending on the specific conditions of the offer for which you are interested, it may carry some commissions that you must pay; since they are not non-refundable aid and carry their respective expenses.
• The amount of money is moderately small, so this microcredit does not become a tool for large investments.
For many years now, a man named Muhammad Yunus, Nobel Peace Prize winner, extended the idea of microcredit until nowadays many public entities and administrations offer it; although each of the offers will be specific to each case and it is advisable to study each of the specifications to assess them according to the personal interests of each case.
Despite the determinations, there are currently under the law a series of common characteristics with which the self-employed will find themselves:
• The fundamental characteristic of microcredit is that the self-employed does not need a guarantee or guarantee for this loan; so one of the main obstacles for people who do not have financial capacity in favor of having a project with good pillars of business and commitment is eliminated (although this in some cases may involve a bias where entities tighten the selection criteria).
• The amount of money from the microcredit will have a minimum of 10,000 and a maximum of 25,000 euros.
• In many cases, preferences are reflected, such as the cancellation of commissions, easier terms, or lower interest rates than those that are generally in the market.
• Financing can be directed to the beginning, to the expansion or to the consolidation of the business.
Arrived at the point where the letters are on the table What is the process of applying for a loan for freelancers without endorsement such as microcredit?
First, your personal and family situation will be investigated in terms of factors that have prevented you from actually accessing a traditional loan guaranteed with the same amount of money, that is, the possibility of housing like the parents who could guarantee the loan The granting of the microcredit can be difficult.
Next, the project that is presented is analyzed; both in the business plan, the probability of its viability of success… Although if any aspect is deficient, the entity with which you contact can advise you how to improve the idea.
If your project is accepted, you will require the relevant documentation:
• Feasibility report of the entity
• Request for the microcredit
• DNI, CV, work life report, income statement…
• Profesional references
• Invoices or budgets that justify the investment if the loan is intended to expand the business.
• Own funds if necessary
• CIRBE request authorization
After the pertinent documentation, many entities carry out an interview that collaborates with the selection process; This interview being a means where the user is given the opportunity to personally expose the business idea so that the entity can later thoroughly assess the case and the economic factors of the case.
If all this process is overcome so far, the microcredit is granted and formalized to obtain the money agreed upon in any office of the selected entity.
If instead, your microcredit has been denied by the entity, do not worry because 2015 aims to be a year where the statistics provide for an increase in the concession of the same because the European Central Bank forced the banks more solvent to grant them so that the economy of this country could be reactivated with the self-employed and SMEs as a fundamental pillar of basic economic movement. In addition, currently it seems to have a great reception companies that offer loans privately when banks are not given to grant this type of microcredit without endorsement.