Credit Bureau information is part of the routine credit check when lending by domestic banks. It informs banks and traders about possible negative entries and a score value, the exact calculation of which is not, however, open. Full banks receive additional information about existing loan liabilities.
Applicants who have already forfeited a negative entry want a loan without Credit Bureau information. Furthermore, it makes sense to forego the standard credit rating request for German credit protection if there are already extensive liabilities. In the case of a loan without Credit Bureau information for the self-employed, a distinction must be made between commercial and private reasons for taking out a loan.
The credit without Credit Bureau information for commercial purposes
When taking out a loan commercially, the credit without Credit Bureau information is not uncommon for the self-employed, since operational data are more important for the credit decision than the previous behavior of the credit customer with payment obligations. The Credit Bureau, on the other hand, collects targeted data from consumers, while extensive data records on commercial enterprises are mainly collected by credit bureaus such as Creditreform.
Consequently, banks often grant credit without Credit Bureau information for self-employed people for commercial purposes by submitting an inquiry to Creditreform. For individual entrepreneurs, the answer to this request also contains the data on personal creditworthiness, whereas for corporations it is mainly limited to business financial data. In some cases, the house bank also grants credit without Credit Bureau information for the self-employed for business purposes if it evaluates the expected profit data after the financed measure as sufficient and at the same time can assess the creditworthiness of the self-employed loan applicant based on their own experience with it.
A bank’s internal credit rating is based solely on its own payment data, but it is much stricter than Credit Bureau information. In contrast to credit protection, the house bank can understand each individual payment delay in previous credit contracts and evaluate it when determining creditworthiness. Many promotional loans from Lite Lender can be compared to a loan without Credit Bureau information for the self-employed, even if the federal promotional bank obtains one.
For a majority of the programs, the former Reconstruction Loan only refuses to pay the loan if the applicant has filed for bankruptcy, while any other negative features that may exist have no effect. Lite Lenderpromotional loans can be applied for by self-employed persons both in the start-up phase of a company and for later investments. Individual sectors such as agricultural holdings are not or only partially covered by KfW, as they have their own funding institutions whose lending guidelines are based on those of the largest development bank, so that they also enable borrowing with soft negative characteristics.
The credit without Credit Bureau information for private purposes
A loan without Credit Bureau information for the self-employed for private purposes is generally available from Liechtenstein banks. While most federal credit institutions only accept employees as borrowers, some Liechtenstein banks also grant the Credit Bureaufree loan, which is also known as a Swiss loan, to self-employed persons. The prerequisite is usually that the company has existed for at least two years and generates a stable profit. The amount of the Swiss loan without Credit Bureau information for the self-employed is limited to 3500 USD or 5000 USD if you apply directly through the bank. The two possible loan amounts are stated in USD, since the entire loan processing is also carried out in this currency.
The self-employed borrower does not have to worry about price fluctuations with a “Swiss loan” from Liechtenstein. The loan is granted without Credit Bureau request, since the Liechtenstein financial institution is not a contractual partner of the German credit protection. However, it does a credit check with the Swiss ZEK. The tasks of this institution are similar to those of the Credit Bureau, whereby it collects more data about citizens living in Switzerland than the German credit protection system and also records the profession carried out, among other things. However, ZEK does not have any data records on German loan applicants unless they have already taken out a loan in Switzerland or Liechtenstein.
If the amount of the loan exceeds $ 5,000, you can also take out a loan without a Credit Bureau for self-employed persons for private purposes in Liechtenstein or Switzerland. In this case, the way is through a credit intermediary. Before commissioning the service provider, the self-employed person ensures that the service provider only charges a success premium after the loan has been paid out and does not charge any preliminary costs. As an alternative to loans from abroad, a loan without Credit Bureau information for the self-employed can be provided with an existing capital life insurance or a private pension insurance.
In both cases, the independent borrower’s payment claims serve as collateral, so that it is not necessary to obtain a Credit Bureau information. However, Rürup contracts should not be lent because any loan is deemed to be harmful and will result in the immediate loss of all grants and tax benefits received.