April 10, 2020

Credit credit check for self-employed and craftsmen.

With a credit check, the bank assesses the credit default probability

With a credit check, the bank assesses the credit default probability

Now, self-employed people can do their own credit check and see how they would judge the bank on a loan!

Many companies, the self-employed and craftsmen can not understand a credit decision of banks and savings banks. In addition, self-employed and craftsmen usually get only a “yes” or “no” after applying for a loan. A justification for a credit decision is often missing. Each credit application must be subject to a credit check. This is equivalent to a credit check.

A key role in a credit decision is played by the Basel II + III rating. The credit default probability of one year is assessed. These criteria are “manageable” to “extensive” depending on the loan amount. The focus of this credit check is on important risk factors that affect a company. Here, a distinction is made between hard and soft criteria. The hard criteria such as sufficient profit, total financing, collateral and management and / or owner only count the facts! It is different with the soft criteria, because a bank can ever turn a blind eye!

Credit advice, if banks reject!

  • favorable government loans by Cream Bank with indemnity
  • Rescheduling expensive current account credit
  • Order pre-financing and increase warehouse
  • Guarantee of the guarantee bank if the collateral is too low
  • Capital raising for other purposes
  • Consulting cost subsidy 50% to 80%

There are banks that still finance if the house bank refuses!

Similar contributions for a credit check for self-employed and craftsmen

> Credit check for a loan for self-employed and craftsmen

> Management consultancy for the self-employed and craftsmen

> Credit comparison for the self-employed and craftsmen

Table of contents Credit rating check for self-employed persons

  1. Who does the credit check?
  2. § 18 Banking Act
  3. Personal creditworthiness
  4. Typical signs of a lack of creditworthiness

The word credit comes from the Latin of “Gregor” and means trust. Confidence in the borrower that he repays the borrowed money.

The rating rules according to Basel II + III are relatively clear. But every bank has its own rating system internally. A small loan is usually small loans from $ 10,000 to $ 50,000. Therefore, we would like to introduce you to a simplified form of credit check.

§ 18 Banking Act

According to § 18 of the German Banking Act, credit institutions are obliged to examine the economic situation by means of forward-looking documents:

  • financial statements
  • Earnings and financial planning
  • Capacity building based on future data
  • Business reports
  • Income tax returns
  • Assets / liabilities overview

Credit institutions, savings banks and banks check the credit default probability within one year. And if the lending probability is not given, then under the conditions no loan can be granted. The bank then rejects a loan application for the first time. But it does not have to be that way for a company!

Because there are many ways to positively influence the credit criteria. For example, a guarantee from a guarantee bank may be requested if the collateral is insufficient or no longer adequate. As a result, the credit rating and the associated credit default probability are positively influenced.

Other banks have different credit default probability credit standards! In a management consultancy we create an appropriate corporate concept and can thereby take into account measures that have a positive influence on a credit check or credit decision.

Personal creditworthiness for companies

1. The basic requirement of a loan transaction is that the lender trusts the borrower!
2. The importance of personal creditworthiness lies in the influence of the managing director or a managing director on the economic success.
3. In a nationwide survey, credit officers gave the following:
– Over 60% that the personal creditworthiness is as important as the material situation of the company.
– Over 30% that personal credit worth even more important!

Credit check: Lack of creditworthiness for the self-employed

  • frequent overdrafts of the current account overdraft (disposition or disposition credit)
  • Account management always at the credit limit combined with declining account sales
  • Direct debit due to insufficient funds
  • Non-compliance with commitments for account returns
  • significantly increased total debt
  • Significant shortcomings in a factory tour that attract a banker

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