Self-employed people bear their entrepreneurial risk alone. Their capital is their capital. It must be calculated wisely, because what one spends, should come in again with a profit. If you have to burden yourself as a self-employed with a loan, then you should choose carefully, because that is a serious encroachment on your own financial equilibrium, possibly for years. But some banks also offer overdraft facilities for the self-employed.
What is a bank overdraft?
Overdraft facilities are an overdraft facility provided by the Bank with fixed limits on a current account. This credit is also called overdraft or overdraft.
A current account is an account in which all incoming payments are offset against the payments and so a balance arises. The most common form is the checking account. A current account is a so-called current account. The term consists of “conto” (invoice); and “corrente” (running) together.
If the balance is insufficient to cover all liabilities, it is possible that the bank will grant a loan. This allows the current account to be overdrawn. This current account credit, also known as Dispo, allows a certain amount of leeway, if the bank grants him. However, this is usually burdened with high interest rates. It is not necessarily suitable for larger investments or acquisitions.
Astro financing for your own business
The fact that self-employed people are granted a current account credit is not necessarily due solely to the existence of a current account. Banks want collateral for their loans and the dearest is a regular income, which self-employed usually does not have. Even a large loan, ie one that has a long maturity and is intended to finance company capital, is difficult for the self-employed.
But not every need for money in your own company has to make a bigger sum. Sometimes a few thousand euros are enough to make an order between financing, without which the next order could not be done. If you have a current account loan and use it for this purpose, you should repay quickly, because as I said, the interest rates are very high and since the term is usually not limited, it may be that you wait longer than was planned.
If you do not have this option, then you can now try the loan calculator here on the page. BankFit offers a loan for the self-employed, which is meant only until the next receipt of money, which does not bind the self-employed so also long. Because your flexibility is important to us.
Current account credit – Business advantages and disadvantages
- The interest, and thus the cost of the current account, are very high. It is one of the most expensive financing options for companies.
- For self-employed the current account credit is difficult to get.
- Since the term is not limited, there is a long-term risk of debt.
- The interest charge corresponds only to the actual amount of the overdraft and the term.
BankFit: The flexible credit line for the commercial sector
A credit line describes the maximum limit of the granted loan, with BankFit you can set this yourself. The BankFit loan is a short-term business loan that gives the self-employed the opportunity to pre-finance goods, to refinance orders, or to settle an urgent invoice elegantly immediately.