Financing for the self-employed – Loans for your business

If you work as an employee and have irregular income, you may think that our options for getting loans for freelancers are very small. However, Green-Touch for business loans will allow us to obtain financing.

What financing products for the self-employed exist?

People who work on their own account have it more complicated to obtain financing , since their income is somewhat more unstable than those of employees or pensioners, for example. However, we must bear in mind that if we already have a professional career as self-employed, it will probably be easier for us to be granted capital. On the other hand, if we are new entrepreneurs, it will be necessary for us to have a great idea that is profitable, viable and attractive to get them to finance us.

However, we have several options to obtain extra liquidity, since the supply of business loans for this sector of the population has grown a lot during the last years. Currently, these are the products that we can contract if we need to finance a particular project or our business in its entirety:

Financing for self-employed personal projects

  • Mini online loans : with these products we can get money amounts of around 1,000 euros (in some cases, even exceed them reaching 1,200 euros) in a matter of minutes and with a refund period of 30 days in a single share. They have an average price of 1.1% daily. They are designed to solve unforeseen events and we can access them even if we do not have a payroll.
  • Personal loans for projects : if we need liquidity to finance a particular project, we can request this type of products that will allow us to finance the good or service that we want. The granting of the money will depend on the income we receive, that is, that they are sufficient, justifiable and regular.
  • P2P Loans : it is one of the most innovative means of financing and we can request them both to finance our business and to obtain money at a particular level. These are virtual platforms that put users in contact with financing, with people who are willing to invest to make their savings profitable. First, the person seeking funding publishes his project and the amount he needs. Then, the platform analyzes its situation and determines a level of risk that will translate into interest, that is, a higher level of risk, plus interest. Finally, investors will decide if they want to invest in our project or not.

Each of these types of loans have different characteristics and have been designed for different purposes, so it is convenient to compare the different offers and conditions to request the one that best meets our needs and adapts to our situation.

Liquidity to invest or pay business bills

  • Lines of credit for self-employed workers : these are loans created with the specific purpose of financing small businesses. We can find these products both in private equity companies, as in banks, although these will require us to comply with more rigid requirements.
  • Loans for self-employed workers and SMEs: these are products designed to invest money in a business project and we can request them from public institutions and banks.
  • Credits with mortgage guarantee : these are loans with which we can get very large amounts of money (depending on the assessment made of our home) and that do not require us to justify the purpose for which we want to use it. However, before applying for one of these loans, it is important that we are aware of the risk to which we expose ourselves in case of default.

Depending on the amount of money we need, our profile and the situation in which we find ourselves, we will need to request a type of financing for self-employed or another. It is important that before requesting a product or another, we make sure that we meet the necessary requirements and that we will be able to fulfill the conditions to which we commit ourselves.

Credit requirements for self-employed workers

If we want to obtain financing for self-employed workers, the requirements that will be demanded will vary depending on the entity and the type of loan we request. If we go to banks, generally, we will submit to stricter conditions. In general, these will be the demands that we will have to meet to get money if we are autonomous:

  • Being of age : being 18 years old will be essential, although in some cases we may be required to have 21 or even 25 years to access the financing if we work on our own.
  • Live in Spain permanently: it will be necessary to prove that we reside in the country by presenting the DNI, NIE or passport.
  • Enjoy a reasonable, sufficient and justifiable income: they will pay close attention to this requirement since when working on their own we do not have the same stability as if we received a monthly payroll. For this reason, we will have to justify by means of an official document that our compensation amounts to a sufficient amount for the entity and that we receive them constantly.
  • Not be registered in any default file: if we are part of a delinquency list, such as ASNEF or RAI, our options to obtain financing for self-employed workers will be considerably reduced.

If we decide to apply for financing for self-employed people in a bank, we will probably be required to contract related products and have Social Security domiciled in the entity. In addition, the requirements that will require us will be stricter and we probably have to invest time in paperwork and travel , but if we are old customers and have a good track record, surely, we can benefit from several advantages such as a lower interest rate, more flexibility in the terms of return or the absence of commissions or links.

Documents to hire financing being autonomous

At the moment of borrowing money we will have to fill in a form with our personal and economic data. So that the entity can verify the information that we have sent to it, it will ask us to attach certain documents. Most companies and banks will require us to present the following documents if we work for someone else:

  • A photocopy of our identity document NIE, NIF or passport
  • Photocopy of the declaration of the rent and our patrimony
  • Photocopy of our registration number as self-employed
  • A proof of the income we receive
  • A document showing the seniority of our company
  • The last payment we made to Social Security

Before sending the documentation, it is essential that we make sure that the documents are perfectly legible and not wrinkled. Otherwise, the financial institution will ask us to resubmit the papers, which would considerably slow down the entire process.

If we go to a bank and we are already customers, we can also take advantage of certain advantages, for example, we can avoid sending as much documentation and we will lighten the application process. In the case of private entities, many of them include services such as Instantor, which will allow us to validate our data automatically and instantly.