Fortunately, today there is an excellent alternative to get the money you need and when you need it: loans for freelancers
Freelance Loans - Line of Credit or Personal Loan?
Forget constantly fighting with banks to get the financing that your company requires to offer a good service to your customers, today the best online loan companies offer you a useful and effective alternative that will always make you have the cash that makes you lack. In addition, as these credit companies work according to the guidelines of the Bank of Spain, you will always have the guarantee of trusting in a safe and legal company.
Is a line of credit or a personal loan for the self-employed better?
You may have seen these options when looking for loans for freelancers in Spain, but do not get confused because we are facing different financial products.
In a line of credit you receive a fixed amount that can be used in whole or in part during a specific time range (usually 1 year). The independent worker has absolute freedom to use that money that is made available to him, taking into account that he will usually only have to pay interest on the amount he uses. For example, if in a credit for freelancers you have a credit line of 10,000 euros but 5,000 euros are used, you will only have to pay the interest for 5,000 euros, taking into account the repayment period and the APR.
In the case of personal loans, the truth is that it is not the best option for freelancers since in addition to mixing the professional with the personal (something that should be avoided), only a fixed amount of money is received on a personal basis. In addition to the fact that the interests are usually higher with this option, another of its drawbacks is that when money is needed again, it will be necessary to start over with an online loan application process, something that does not happen with a line of credit online as it is automatically renewed as long as the borrower is complying with the obligations agreed in his loan contract for freelancers.
What about mortgage and / or personal guarantees?
It all depends on the online credit company you select. As you may have seen with the information we offered you in the previous section, the best option is to use a line of credit. But in this case, it is normal for mini-loan companies to require certain guarantees to be sure that you will be able to meet the responsibilities of your contract and fulfill your loan. We recommend that you never sign any binding document before discussing this topic with the company of your choice to avoid any unpleasant surprises in the future. And if you don't know how to find freelance loans, take a look at our next section.
How to request a loan for freelancers
To select the online credit that best suits your needs, the best option is to compare all the alternatives that you have at your disposal. For this you can use the tool that most self-employed in Spain use: an online loan comparison or simulator. This free application is very easy to use and will not link you with any company since it will only offer you a list of the self-employed loan companies that meet your requirements such as: the money you need, the interest rates, the requirements, the conditions and the time in which you want to pay the borrowed money.
- What are all the financing options for freelancers in Spain?
In addition to the lines of credit that we already talked about previously, other available options are: Linear Loans, Factoring, Renting, Leasing, Crowdlending, Promissory Notes Discounts, Subsidies (municipal, regional or state), Capitalization of the Unemployment and ICO Lines.
- Can I request credits for freelancers by mobile phone?
Of course, in fact, in order for you to dedicate all your time to your business, the best option is to use the free applications offered by the best online credit companies so that you can request and manage your business mini-credit at any time and from anywhere.
- Can I request a loan if I am a new self-employed person?
Any professional regardless of how long their business has been running can access a freelance loan. The only thing to keep in mind is that there may be significant differences in online credit conditions depending on the financial history of the company.
- Are there grants for entrepreneurs?
This information should be compared with the public administrations of your locality, not with online loan companies for freelancers.
- What can a freelance loan be used for?
For any good or service that your business model needs, such as: employee payroll; purchase of machinery, vehicles, computer equipment, etc .; reforms in the commercial premises; rental of a business establishment; payment of suppliers or taxes; or any unplanned expenses.
- How long can I get the money?
Each credit company for freelancers has its own evaluation process, but if you do it through the internet it will be faster than in any physical bank since the paperwork is minimal.
- What are the minimum requirements to request a loan for freelancers?
That you are of legal age, legal resident in Spain and have a bank account.
Jerome P Allison
I am a freelance writer and consultant for companies and individuals, with a particular emphasis on fintech, technology, startups and online marketing. More information