One of the most unprotected professional groups at all levels in our country is that of the self-employed. Not only do they have a hard time getting to the end of the month, but also obtaining a loan is more complicated for them. In general, banks tend not to show special interest in this profile due to their salary instability. Since the autonomous economic conditions can vary a lot from one quarter to another.
For this reason, if you are self-employed, it is best to make sure you protect yourself. And from Lenders we want to help you. For this we want to offer you the following recommendations in case you want to request a loan being autonomous. Would you like to meet them? In that case, keep reading.
The best tips to ask for a loan being autonomous
Do not let yourself be tempted by more money
One of the most common tricks of traditional financial institutions is to offer more money than we really need. This, in the long run, means we end up paying more money in interest. Do not let them make you dizzy and only accept the amount you need. No more no less. In this way, the loan will come at a better price.
If you do not know how much you need… request a line of credit
Request a line of credit if what you need is to face different improvements in your business, or you want to have capital in case there is an unforeseen. Nowadays there are lines of credit especially designed for SMEs as well as for the self-employed. In this way you will only pay interest for the money you are using. As it happens when you use the credit card. The normal thing is to fix a maximum number every month with the financial institution.
Pay attention to the APR
If you do not want your loan to come out for an eye of your face you should look at the APR or what is the same, the Annual Rate Equivalent. In this marker, unlike the TIN, you will be able to know how much you are going to spend a year in total. Since it adds the interest and the rest of expenses and commissions that includes the loan.
Avoid cancellation fees
Since loans for self-employed workers tend to be less attractive than salaried loans, it is best to cancel them as soon as possible in order to save interest. However, it is necessary to have previously studied the contracting conditions. And to have made sure that the credit lacks commissions for partial or total anticipated cancellation. Otherwise, it is more likely that it will cost you just as much.
Request information from private equity companies
As for example Lenders. Nowadays both private equity companies and private lenders offer very attractive loan terms. Even for the self-employed. Check the market offers and decide on the one that best suits your needs.
As you can see, these are simple tips to follow and apply when applying for a loan. Remember that since the crisis the range of financial options has opened up a lot. Especially because of the greater restrictions of banks when it comes to offering loans.