When lending through German financial institutions, it is customary to obtain Credit Bureau information before making the decision. This not only contains information about improperly executed loan agreements, but for most citizens it consists of neutral data. For self-employed people, the procedure depends on whether they need the loan for private or commercial purposes. A careful distinction between the two reasons for borrowing is also advisable for tax reasons.
Self-employed borrowing for commercial purposes
When taking out a loan for commercial purposes, the credit without Credit Bureau information is largely customary for the self-employed, since the Credit Bureau data mainly target consumers. In contrast, Creditreform and similar commercial credit agencies have extensive information on operating data, so that an inquiry made there is more expedient for the lender than a Credit Bureau information.
For sole traders, the Creditreform data also contain private financial data, but these are only of minor importance for lending to long-established companies. There are no operational credit data for start-ups, but KfW Bank’s promotional loans come close to a loan without Credit Bureau information for the self-employed. The promotional bank obtains one, but only refuses to grant credit in the event of a registered bankruptcy, while all other negative characteristics are irrelevant.
Self-employed borrowing for private purposes
The Swiss or Liechtenstein loan without Credit Bureau information is available for self-employed applicants at significantly fewer banks than for employees. Before filling out the loan application, the self-employed pay attention to the relevant lending guidelines of the selected federal credit institution. Self-employed persons have greater chances for a successful loan application without Credit Bureau information if they submit it through an intermediary. They make sure that the service provider only charges you an appropriate success commission and no upfront costs.
It is unusual for existing customers to obtain additional Credit Bureau information in the trade, so that the self-employed can make follow-up orders at any time with payment in installments. Insurance companies also issue a non-earmarked loan without Credit Bureau information for the self-employed by enabling the loaning of existing life insurance or private pension insurance. This procedure is not suitable for promotional pensions such as Rürup contracts, because the loaning of the corresponding insurance contracts leads to an immediate reclaiming of the tax benefits granted or the subsidies paid out.