A Swiss loan for the self-employed is a delicate issue. At least at the moment there is no simple loan option without Credit Bureau, as for dependent employees. The article deals with credit opportunities and alternatives.
Swiss loan for self-employed – starting point
A Swiss loan for the self-employed cannot be conveniently realized through the offers for foreign loans without Credit Bureau. Ordinary loan offers without Credit Bureau, as far as is known they all come from the same loan provider, are inextricably linked to a dependent employment relationship. A Credit Bureau-free loan is only given to those who have been employed by their employer for at least 12 months.
In a market where there is only one provider, the credit provider sets the rules. As far as is known, Lite Lender is the only foreign credit bank that can legally grant Swiss loans in Germany without Credit Bureau. The self-employed are fundamentally excluded from taking up these loans.
Swiss credit despite independence – the possibilities
An entrepreneur could easily and legally get a Swiss loan for the self-employed who has a branch in Switzerland. It gets complicated for everyone else. In the case of a loan without Credit Bureau, there is neither the possibility of a co-applicant nor a guarantee to secure loans. Even the offer to pledge valuable property security does not lead to the desired loan.
The only option would be to ask a “straw man” to take out the loan. The advantage of this possibility is that the helpful friend or spouse would have no fear of negative consequences. Provided that the actual borrower pays the installments on time. A Credit Bureau-free loan is of course not entered in the Credit Bureau. This means that the helping person’s creditworthiness is fully preserved.
Legality of assistance and fairness
If you think about this possibility, you should not forget the mutual fairness and legality. First of all, it is generally legal to take out a Swiss loan without Credit Bureau and to lend the money on. The credit bank does not make any regulations about what the borrower does with his loan. This is different with many other “normal” loans. It is not uncommon for the borrower to be obliged to take out the loan only in their own interest. A legal “lending” would be impossible.
If a helper agrees to take on this credit risk, he must have the following requirements:
– Be employed by the same employer for 12 months or more
– The employment relationship must be unlimited and not terminated
– There must be no garnishment of wages
– The labor income must significantly exceed the seizure allowance
– An entry in the public debtor register must not exist
It is a requirement of fairness not to expose the helping person to the liability risk alone, at least by means of a private loan contract. This proves at least the clearly honest will to offer the helping friend a legal basis in the event of loan liability.
What does a Swiss loan without Credit Bureau offer?
A Swiss loan for the self-employed – via the above detour – is only granted in two loan amounts. A Swiss loan of USD 3,500 or USD 5,000 is possible. Each borrower can only use one Credit Bureau-free loan. A combination of the offers is excluded. When applying directly, the credit bank calculates 11.62 percent APR for the loan option with a credit of USD 3,500. A single person without any maintenance obligations must prove a net labor income of at least 1,130 USD. The repayment is to be made in 40 constant monthly installments of $ 105.95. A total of 4,238 USD will be repaid for a 3,500 USD loan.
If the Credit Bureau-free loan of USD 5,000 is to be used, the bank calculates an effective annual interest rate of 11.61 percent. For this loan, a single applicant must prove at least 1,600 USD net work income. Again, the Credit Bureau-free loan is repayable in 40 constant monthly installments. The amount of each installment is 151.35 USD. (As of October 21, 2013). A total of 6,054 USD must be repaid for a net loan of 5,000 USD.
How can I apply for a Swiss loan?
In principle, the Swiss loan for self-employed can be applied for by the helpful person, directly or through a credit broker. All of the above costs apply to direct application without a credit intermediary and without third-party costs (certification – cash payment).
If the offer is taken up by a credit broker, for example, via voucher, additional costs arise. On average, credit intermediaries charge about three percent of the loan amount as an agency fee. A Swiss loan for self-employed in the amount of 3,500 USD thus costs a little more than 100 USD agency fee.