Loans changed for self-employment are a line of credit that has become very important today as it increasingly allows the applicant to obtain the desired amount.
The main reason is that the classic funding is often denied to the self-employed because he is unfortunately unable to show that he receives a certain minimum amount of money each month.When the classic personal loan is requested, the credit institution that will have to provide the money needs one or more income documents of the person who needs the loan. By means of these documents, the bank understands the economic possibilities of the potential customer and consequently understands what is the maximum amount that he could reimburse each month on a regular basis and without any kind of problem.
The income document is usually represented by the paycheck, by the pension slip and by the income tax return. Unfortunately for the self-employed only the paycheck and the pension slip have a certain “value” for the lenders.
Let us explain better: the employee who owns the paycheck and the pensioner who receives the pension slip can demonstrate through these documents that every month they receive a certain sum of money. Therefore the bank easily manages to calculate the maximum amounts that these subjects will be able to reimburse and consequently request. The self-employed worker, on the other hand, through the income tax return is unable to demonstrate a continuous income flow because you know, a month could earn a “tot” and the following month could earn a higher amount as lower.
Therefore, the declaration of income for different credit institutions is not considered sufficient to obtain a traditional credit line, precisely because this document is not able to demonstrate a continuous source of income.
In the changed loans for self-employed workers, the subject changes instead. To obtain this particular line of credit it will be sufficient that the applicant, in addition to presenting his own tax return, demonstrates that he is in possession of some movable or immovable property. If the financial company decides that the assets owned by the applicant can be a valid source of collateral alternative to the traditional income, the loan will be disbursed.
Owning property is fundamental to a loan that has been changed. This is because the finance company must run away from any cases of insolvency on the part of the debtor. The executive power of the bill of exchange, used in this loan as a repayment method, allows him to request the foreclosure of the debtor’s assets and their subsequent auctioning to recover the amount needed to settle the portion of the outstanding debt.
In the event that the self-employed person does not have the appropriate assets to guarantee his funding, he may be helped by a third person, who is called in the jargon with the word guarantor. The guarantor makes available its assets as a guarantee of the applicant. Attention, however, in case the debtor does not honor his debt, this will pass into the hands of the guarantor. At that point the guarantor will have to take care of paying the remaining debt and if it is impossible, the debtor’s assets will be seized, if there were any, and then the guarantor’s assets.
Since the position of the guarantor is very delicate, it is advisable to occupy this role in a loan with bills of exchange, and not only, only when the debtor is very well known and only if he is sure that he will have no problem with the repayments.
Unfortunately, to date there are few credit companies that offer loans with bills of exchange to self-employed workers and fortunately they are able to provide funding even to those who turn out to be bad payers or have been reported as protested.