In Germany, those who take up self-employment have the choice between a small business and full-time self-employment. The difference here can be found above all in the income and thus also the tax burden for the trade. Learn more at pbkill.com
Annual income of a small business is fixed up to a maximum limit
Because while the annual income of a small business is fixed up to a maximum limit, no financial limits can be found with a “normal” business registration. In addition, a small business owner is not allowed to charge sales tax on his products, since he does not have to pay them to the tax office.
And while it is usually not a problem for traders with a high annual income to borrow from banks for further investments, a loan for a small business can become a real ordeal. Because banks generally don’t happily open their doors here when a small business owner asks for financial help. Rather, the applicant has to overcome major hurdles in order to benefit from a financial injection.
The lack of regular income and the lower income stand more than in the way here. In addition, the bank has difficulty assessing how this will develop in the future, particularly in the case of a small business. Does the investment take the decisive step forward? Or does this tend to show no reaction in the income of the self-employed?
How does it work with a loan for the small business?
First of all, it is important that the bank can be plausibly explained what the money is needed for. An investment plan can help here. In addition, you should never shy away from a personal conversation with the relevant advisor at the bank. Just a simple phone call will not lead to success at this point. But an open discussion, which deals with the business development and the current financial situation, will pave the way to success.
There is also a good credit rating and some collateral for the bank. Maybe there are already real estate, cars or other valuables in the company? Offering this to the bank as collateral is another correct step towards credit for a small business. Anyone who comes to a conclusion despite all of this with their house bank or another local credit institution should take a look at the Internet.
Here too there are many providers around a loan for a small business. In order to keep an overview of the diverse offers, you should compare in advance and get advice if necessary. In the case of online offers, this is usually possible by phone or email.
And if you are not sure about this or are not getting a degree, you should think about taking out a personal loan. The formalities that have to be completed are usually clearer. Because private lenders are more enthusiastic about an idea than banks.