A loan for professionals and natural persons is well-received by the banks, but is a little trickier and more complicated compared to a loan for salaried people. The sticking point lies here less with the income, but is rather in the liability and their scope search.
In principle, traders have to choose between two models, but both are more or less closely linked to the nature of the company. Both options have their advantages and disadvantages, but in the end it is only the security that can be offered when the loan application is approved.
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In addition to income and one’s own private assets, under certain circumstances, the assets of the company can be brought to liability. Banks sometimes enjoy using this opportunity, and sometimes reluctantly. It all depends on the type of company.
If, for example, the entrepreneur is a sole proprietor in a sideline, the bank may seize private assets and corporate assets in the event of financial difficulties, but must be careful not to restrict the debtor’s ability to pay too much in his own interest. But it is easier for a partnership in a GmbH, where the applicant is also the managing director. Here the conditions are clearer and the bank has more possibilities to collect the due debt.
The second possibility: liability only with private assets
If the corporate assets are not used to secure the loan amount for a loan for tradespeople, the private assets are often excluded from liability as a substitute. For debtors, it is important to know that even entrepreneurs in the worst case, the full claims under the statutory provisions for the protection of private assets can assert. The insolvency law for private persons can therefore be fully used here and even if the debtor is de facto an entrepreneur, he still has to be treated as a private debtor.
This option is particularly popular because here the entrepreneur can fully enjoy the loan amount, but at the same time not have to use his source of income as collateral. This additional hedge is not to be despised in a loan for professionals, because of course, entrepreneurs are subject to the famous entrepreneurial risk.
A decision with many consequences
Which of the options is ultimately chosen is mostly alone in the hands of the applicant. However, in some legal forms, there is no other possibility of liability and the assets of the company are also held liable. For banks, full liability is of course more attractive, but studies prove again and again that this question is rarely decisive in the approval or rejection of a loan agreement for entrepreneurs.
In the case of a loan for tradespeople, not only the liability, but also the credit rating, the prospect of corporate success and the expected income, as well as, of course, the purpose of use, ultimately determine the success or failure of a credit application. However, the chances of a grant are not bad, because even if entrepreneurs are exposed to a certain risk, they are still considered reliable and in most cases as correct borrowers with a corresponding sense of duty towards the creditor.