Why is it harder for the self-employed to get a loan?
The self-employed and freelancers are often rejected by traditional lenders such as banks. The reason is that, from the banks' perspective, they as potential borrowers have the same problem: their income fluctuates and is often not fully predictable for the coming year. Their future creditworthiness is therefore difficult to predict. What means great freedom for many start-ups and freelancers can backfire in the event of a financial bottleneck. Because the variable income figures and a fluctuating order volume make it difficult for the self-employed and freelancers to get a loan from banks. Especially if your need for money is short-term and should be met quickly and easily, then a bank's loan offer is probably not your first choice.
Freelancers and the self-employed do not always pursue an activity that everyone is familiar with. Then you first have to explain at length how you actually earn your money. And then you can't even be sure that all your explanations will really lead you to your goal – namely the desired loan. Because if the bank doesn't know exactly what you do, then it will also be difficult to estimate how much money can be earned with it.
What alternatives are there to a loan?
If you borrow money from a bank or a loan broker, that ultimately means that the bank obtains information from the "KSV" credit agency about how creditworthy you are. The so-called "score" is queried here, a value that indicates the probability of you repaying a loan. The lower the KSV value, the less likely the credit agency thinks you will repay the loan. This creditworthiness information is decisive for whether your loan application will be successful. The process from applying for a loan to approving your loan at your bank or a credit institution is usually complicated and involves a high level of bureaucracy. In particular, the self-employed have to reckon with a large number of bureaucratic obstacles.
Especially if your need for money is short-term and should be met quickly and easily, then the bank is probably not your first choice.
If you can overdraw your current account, i.e. have been granted an overdraft facility, then this can also be a solution for bridging a temporary shortage of money. However, be aware that overdrawing your current account is also reported to the KSV, which further lowers the score value for classifying your creditworthiness. This would be disadvantageous for you for a possibly higher loan later on.
A real alternative to a regular bank loan and the associated report to the KSV is a pawn loan from Pfando. You will receive a certain amount of money for your car. The advantage of Pfando over normal car pawnshops is that you can continue to drive the car after successful inspection and loan approval. So you don't have to leave it at Pfando.
How do I, as a self-employed person, get a pawn loan from Pfando?
It is important for Pfando that your car is in good condition, that the car has road approval and is insured. Then you have the best conditions to pawn your car at Pfando. Your car is your chance to get cash effortlessly and quickly.
Especially if you only have a short-term need for money, because perhaps a customer has not paid their bill on time, Pfando can help you out. With us, you will not be faced with a long and arduous approval process like with a regular loan application. We check the condition of your vehicle as quickly as possible and, after successful inspection, pay out the pawn loan just as quickly.
You should still be aware that this is a short-term solution. Long-term financing requests, such as setting up a new line of business, are unlikely to be realized in this way. With Pfando, you can have amounts of 4,000, 6,000 or 10,000 euros paid out as a pawn loan – depending on the condition and value of your vehicle. Pfando has no limit in principle with regard to the payout amount and even regularly pays out amounts in the range of €30,000 to €40,000. Only the value of the vehicle limits your payout amount.
Here's another advantage of this alternative to a normal loan. It doesn't matter which industry you work in. Because Pfando does not evaluate your income, but your vehicle (own car, company car, any vehicle with registration). This means for you: no KSV information and no KSV entry!
Get cash in 60 minutes in 3 steps
Bring car
Receive money
Continue driving your carWith Pfando, you don't have to deal with annoying bank meetings. Make an appointment at one of our branches today and bring your vehicle and all the necessary documents with you to the appointment. We will evaluate your vehicle and take care of the formalities. This usually only takes 60 minutes. After successful inspection, you will receive your money and continue driving the car.
Receive cash within 60 minutes and continue driving your car
- Immediate cash (today)
- TÜV certified
- Highest payout amounts
- The credit alternative –
even with a negative credit bureau entry - 60+ locations in Europe
- Trained customer advisors
- On site and always available for you by phone
- Verified contracts
Why is Pfando especially good for the self-employed?
As a self-employed person, trader or freelancer, you may be more dependent on a car than other people. A car not only means mobility. You often have to drive to customers or attend external appointments and thus keep your business alive.
But a car also says a lot about a person's status and success. In order to continue to appear credible, it is a great advantage if you can continue to drive your usual car. Wouldn't you agree with us? If you offer your car as security at Pfando and receive money for it within 60 minutes, then nothing gets out, everything runs discreetly.
Especially for company founders and start-ups who are just starting out in business, it is important not to lose the trust of customers. So it's better to appear as a reliable entity with a consistently driven car. Your customer doesn't need to know what your financial situation is at the moment.
Unlike a conventional bank loan, with Pfando, you can deduct the contract costs as business expenses for tax purposes. This reduces your tax burden when you next pay the tax office.
If you want to avoid damaging your credit rating due to a minor financial bottleneck, then a car pawn loan from Pfando is a suitable alternative to conventional bank loans. Pfando values your car, not your credit score.
Take advantage of our special pawn loan service and receive a free, no-obligation loan offer from us. Our trained staff will be happy to advise you.
The Pfando principle explained in brief
BECOME LIQUID AGAIN QUICKLY WITH PFANDO!
Private customers
We at Pfando offer private individuals with an acute need for money an individual and flexible solution. We know that the reasons for a liquidity bottleneck can be varied. For example, have you lost a legal dispute or have other private debts? Is there an accident-related payment default in the case of self-employment or is a tax refund due?
Do you have a payment default in your company and want to secure continued payment of wages?
Business customers
Even a short-term inability to pay can mean the end for a company: many business owners get into financial difficulties due to an unexpectedly high advance tax payment, especially when the tax calculation is switched from back payment to advance payment after the 3rd business year. If continued payment of wages is not possible for several months, you may lose employees and a recovery from the liquidity problem becomes increasingly unlikely. In such cases, we at Pfando’s cash & drive GmbH help business owners to quickly restore liquidity and secure continued wage payments.
What our customers say
Everything was very relaxed. The advisor was very friendly, competent and courteous. After we had clarified all the formalities, the check arrived within the next 30 minutes. [...]
After the application was processed very quickly, I had the money in my account less than 3 minutes later. And I was rid of my worries. [...] The best thing is that I can continue to drive my car.
I have been a Pfando customer for a long time and have used their services several times at certain intervals. The good thing about Pfando is the fast and uncomplicated processing to get money quickly at short notice.
Other interesting articles