BWA (business evaluation) is often indispensable when it comes to credit for the self-employed. Through them, the credit institution assesses the applicant’s creditworthiness in accordance with Section 18 KWG. For the loan officer, the BWA reflects the current state of the company much more realistically than the annual balance sheet.
Credit for self-employed people with BWA backgrounds
The developed the BWA idea in the 1960s. The entrepreneur gains a current overview of the status of the company through this data. Since then, the BWA has provided the information according to which the entrepreneurs make their decisions. In addition, this evaluation enables every outsider to realistically record the business situation. The financial status will also be comparable across the industry.
The BWA plays a key role in granting credit. It provides the data that the clerk uses to determine the creditworthiness according to § 18 KWG checks. If the result of the test is clearly positive, then the loan can be approved for self-employed persons with a BWA. If there are doubts, further analysis or security is required.
German credit institutions are also legally obliged to have the economic situation disclosed again during the term of the loan. Compliance with this regulation is checked by the Bafin (Federal Financial Supervisory Authority).
Loan with BWA versus loan with income tax return
Not every lender necessarily relies on the BWA as the basis for evaluating his credit decision. With small loan amounts and the offers of the credit intermediaries, often only the income tax return is required. In these cases, the keywords “simplified credit procedure” and “instant credit for self-employed” are often used.
That’s how many loan offers you get
The evaluation of a BWA is relatively time-consuming for the clerk. In addition, he must have an advanced business background. This effort is hardly worthwhile for small loan amounts. The credit institution can also comply with the legal requirement by examining the income tax return.
For foreign banks with which credit intermediaries work more closely, the legal benchmark for credit checks is often much lower. German credit institutions are examining more closely, the credit for self-employed persons with BWA is the rule. In return, the loan costs are more moderate compared to international loans.
Personal loans to finance self-employment
The availability of a bank loan has deteriorated as a result of the USD crisis. Large companies can refinance themselves via the stock market. Small and medium-sized companies do not have this option. If the banks withdraw from the financing of the companies, the only alternative is to take the alternative to personal loans.
The personal loan comes from the Internet today. The market leaders in the industry are two portals with approximately the same performance. The portals offer is a combination of investment capital and investment opportunities. Many retail investors are trying to avoid devaluing their savings in this way. You invest it yourself within a bidding process and earn on the interest. The loan for the self-employed with BWA can be realized from private at fair interest.