Self-employed persons are natural persons who operate without an organizational code and who are unable to specify the working hours, working conditions, etc. of their employees. Since an individual does not have the legal personality of the enterprise, there is usually some financing difficulty, but it is not impossible for an individual to make a loan. What are the conditions for self-employed persons to handle their loans

What are the conditions for self-financing

I. Adequate repayment capacity

The self-employed must first have sufficient repayment capacity. Banks or other lending institutions have certain requirements for the ability of lenders to repay, requiring them to have a stable source of income and a stable personal credit record. Thus, there are certain thresholds for individual loans: the need to provide banks or other lending institutions with sufficient financial resources, tax records and personal credit records。

II. Good credit records

Good credit records are important for individual households. Banks or other lending institutions search for past credit records of individual households, including credit card credit records, letters of credit records, letters of credit reports, etc. Good credit records mean that self-employed individuals have a good repayment history, creditworthiness and ability to repay, and can better access the trust and support of the lending institutions。

III. Sufficient use of borrowing

Individual applicants for loans need to identify the purpose of the loan, provide banks or other lending institutions with details of the purpose of the loan, and indicate in the application information the reasonableness and necessity of the purpose of the loan. In cases where the purpose of the loan is clear, banks or other lending institutions can better assess the risk of the individual and at the same time better avoid the risk。

IV. Stable industry and business context

Individual loans require a stable industry and business background. For certain industries, there is a particular need for a certain level of professional background and experience, e.g., for self-employed persons in the real estate sector, a certain level of knowledge and practical experience. This would better demonstrate the repayment capacity and business stability of the individual and increase the trust and support of the lending institutions。

V. ENOUGH EQUIPMENT

Individual loans usually require a certain amount of collateral to obtain a better interest rate and amount. The types of encumbrances vary from real estate, automobiles, machinery, etc. to the requirements of different lending institutions for encumbrances. Therefore, individual loans need to be applied with special attention to the requirements and quantities of the collateral so as to better obtain the support and approval of the lending institution。