A working capital loan for craftsmen is available at favorable conditions.
Resources cost a lot of money to purchase and must meet certain standards. However, the work equipment is necessary to keep a craft company running and making the work efficient. Craftsmen who can not afford the necessary finances for components, assemblies or facilities should receive a working capital loan for craftsmen. The loan is designed in its terms of the professional industry and resembles in its requirements a loan for self-employed and freelancers. Often craftsmen have to turn to certain banks because the house bank does not lend to craftsmen.
The working capital loan from the house bank or other credit institutions
Typically, craftsmen first contact their house bank to apply for a loan for working capital. The simple way at first glance often proves to be useless if a craftsman has been a customer of this house bank for several years. From the point of view of an ordinary house bank, the request certainly looks like sudden financial distress; the bank does not grant the working capital loan in this case. It helps to choose alternatives, such as cooperative banks, which include the local cooperative banks. The change to another bank can also help, because new customers get special attention. In such a case, the working capital loan is recommended in the form of state subsidies. Another possibility is the request for a working capital loan with promotional loan banks. Even the special financing without collateral can be used here.
Requirements for a working capital loan for a craftsman
As with any loan, the working capital loan for craftsmen is subject to certain conditions:
A craftsman must provide the bank with two full annual accounts, as a profit and loss account. From the documents, the bank takes the craftsman’s liquidity and estimates his creditworthiness. Entrepreneurs who generate high profits have greater chances of high loan sums than artisans whose profits and losses are constant.
In addition, the credit institution needs the average business information to provide the working capital loan. The information shows how high the average operating expenses of the craftsman are.
In addition, banks preferably grant the working capital loan to customers with clean private credit information. Craftsmen with serious negative private credit entries have lower chances on the working capital loan, because their solvency is limited.
Banks grant working capital for tradespeople if the company employs between 1 and 250 people. Small and medium sized companies have a good chance of getting credit for working capital.
Comparison provider for a working capital loan
Craftsmen who meet the requirements mentioned, get the operating credit usually without problems. It is also advisable to compare different credit institutions and development banks in order to use optimal conditions. A quick comparison on the Internet saves the craftsman time and money when he takes a working capital loan.