Self-employed people usually don't have an easy time getting a loan. The reason is, lenders want their money back along with interest in a certain amount of time. To achieve this goal, they require a guarantee in the form of the borrower's creditworthiness. This includes a positive credit report, a regular income, a guarantee or other security.
Self-employed persons and other groups of persons such as freelancers and students do not have a regular income, which means that they are generally not considered creditworthy by banks. A large, unplanned risk for the self-employed is also hidden in an unexpected drop in orders or outstanding receivables. Factors that are usually not assessable or influenceable. Many reasons why credit institutions have difficulties with a loan for the self-employed.