Many entrepreneurs would take out a loan in order to finance a start up business but it often happens that someone running an established concern has to borrow in order to support this in leaner times. In Germany it is very important to guage whether the planned loan amount it sufficient to cover the shortfall since SCHUFA is known to file all loan applications away and two applications within a short space of time (in the event of the first sum being insufficient, for example) would be reason enough for the second application to be refused.

If the owner of a small business can present the lender with a suitable security this tends to smooth out any obstacles that might obstruct the acceptance of the application. However the commercial reality ist that only a small percentage of those running their own business have enough capital to satisfy the lender's requirements in this respect. Normally then, the lender is required to purchase an insurance policy along with the loan and pay this off in installments integrated into the loan repayments.

However this does increase the cost of the service in real terms even if this cost is cushioned by the spread of payments. Sometimes such an insurance policy is incorporated into the repayment schedule when the provider offers a loan without SCHUFA - after all there is an increased risk for the provider when no independent credit worthiness checks are carried out. Self-employed persons in certain business areas are at a disadvantage in the credit application process.

The fact of the matter is that that every bank and credit provider has ist own „black list" which marks out those business areas they want to avoid lending to, based on their own profiles of preferred lenders. In order to avoid the disappointment of a refused application it is always advisable for the entrepreneur to outline his plan to the lender before completing a full and detailed application in order to „test the water". If a someone had a black mark against their name as an employee but wishes to take out a Kredit again as a self-employed person it is certainly possible to borrow money (for example through a so called Schweizer Kredit). Only in this case the interest rates will be higher and processing period longer. Because the phrase „time is money"is especially pertinent when you're your own boss an online comparison site greatly simplifies the process of finding the most suitable Kredit.

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