Every now and then it happens that a freelancer cannot pay his bills. This is not infrequently due to the fact that he has to wait for the payments from his customers and therefore has to pay in advance. If too many customers do that, financial bottlenecks quickly arise and often only a cheap loan for freelancers helps. Many banks see the risk as too high when it comes to a loan for this professional group. These are also solvent and usually meet their payment obligations. However, getting a loan is not always easy.
What loans are there for freelancers?
If the amounts are small, the borrower can take out a current account credit. This is also known as a supplier loan and, as the name suggests, a cheap loan for freelancers in this case is a loan from one of the suppliers.
This loan has a maximum term of 90 days. There is a delay in payment so that the freelancer is given the opportunity to meet his payment obligations during this time. But if it is a higher sum, then you should think about an installment loan with a credit institution.
So the freelancer does not get into trouble and can breathe easy for the time being. After all, it’s about your own existence, so it should be carefully considered how much money is really needed. Once you have taken out a loan, you can normally only take out a loan once the loan has been repaid.
What about a long-term loan?
A cheap loan for freelancers can also be a long-term loan. A long term is chosen so that the monthly charge is not too high. This means that there will not be a financial bottleneck again quickly and the freelancer has enough time to repay the loan. But you should always make sure that it is really a cheap loan.
The effective annual interest rate must always be taken into account, because it covers all the costs that such a loan entails. A contract should only be signed by the freelancer once this interest rate has been checked. If necessary, the search takes a little longer, but the search pays off in the end, because nobody wants to pay unnecessarily much money for their loan.