Small loan for trainees – borrow money privately

Apprentices often need a small loan at the beginning of their training. Many apprentices move to their first small apartment. There is then missing furniture and other household items. The trainee usually does not have enough money to afford these things. The trainee now has to think carefully about which of the things he really needs right away. Is it perhaps better to realize one or the other acquisition later? As a trainee you should think carefully about whether a microcredit now makes sense. If trainees need a small loan, we have summarized the following tips.

Trainees do not get credit from the bank

Trainees do not get credit from the bank

Apprentices often receive no credit from their bank, with the exception of an emergency loan, which nobody can be surprised. As a rule, their training allowance is quoted under the seizure-exemption limit, so that no single creditor receives a loan from a German financial institution without further ado. A guarantee could help here, with trainees would question the parents. But sometimes they do not want to or can not vouch for this, sometimes the young prospect does not want to ask them. Are there alternatives for the loan request?

P2P portals as lenders for trainees

P2P portals as lenders for trainees

P2P portals are “peer-to-peer” portals. That means “equal to the same”, even if the acronym sounds like “private to private” and actually meant that way. In plain English: on a P2P portal, private individuals give loans to private borrowers. The P2P portal organizes the awarding and the repayment, integrated is a bank for the technical handling. The interest rates are freely negotiated between borrowers and lenders. This variant works well under certain conditions and on certain portals. 

How is the lending of the well-known credit market places in detail?

How is the lending of the well-known credit market places in detail?

The prospective loaner takes certain steps up to his loan, which are also explained in detail on the portals:

  • Registration with a personal profile (free)
  • Setting the loan request (free)
  • Interest rate offer to the lenders
  • Adjusting the interest rate offer in a 14-day auction phase (termination possible at any time)
  • Credit is paid on reaching the total investment
  • Repayment in the agreed installments

Why is there a loan for apprentices on a P2P portal, but not at the bank?

Why is there a loan for apprentices on a P2P portal, but not at the bank?

The bank must adhere to certain risk management guidelines. These guidelines have been tightened in the last five to seven years as part of the great financial crisis of 2007/2008. These guidelines also include that an applicant with an income below the seizure limit can receive at most a small loan, and this only with the help of a guarantee and / or strong collateral (life insurance or similar). The private money lenders on a P2P portal are of course not bound by such policies, they can give anyone a loan if they trust him and if the interest rate from their point of view is in order. In addition, a major advantage is the diversification of the risk: the investor usually invests several small sums in several loans, the borrower receives from many investors in smaller sums all the money. Both sides spread their risk, the whole thing is called “Crowdfunding” (swarm financing).

What is important to me as an apprentice on the P2P portal?

What is important to me as an apprentice on the P2P portal?

Of course, credit applicants are wondering what exactly matters to get the loan they want. These things are hugely important to lenders for lending:

  • The profile of the trainee must inspire confidence
  • A good and detailed description of the loan project helps the lenders with a decision.
  • A photo raises your attention (pay attention to license for photos)
  • Income and assets must not be lied to
  • Use the credit certificates
  • Respond to inquiries from lenders quickly and honestly

Credit bureau application online

Credit bureau Information Online – immediately and with costs! You can only request the free Credit bureau information by mail. You can request the Credit bureau information for free: self-assessment.For this purpose, the person concerned has unrestricted access to the Credit bureau data concerning him. Visit http://forumask.net for a summary

And how does that work?

And how does that work?

At the same time as placing your order, we will send a letter on your behalf to Credit bureau. You will be asked to summarize all the information gathered about you and to send it to you in a summary. The 34 Federal Data Protection Act, among other things, that once a year you must receive information about your information from companies that have made information about you free of charge.

However, this information usually needs to be measured in a relatively time-consuming manner – and credit bureaus such as the Credit bureau often try to make their own, often very costly offers.

Request free information about the Credit bureau

Request free information about the Credit bureau

Once a year, you can obtain the Credit bureau information free of charge. With the Credit bureau you can inform yourself about your credit rating or the creditworthiness of your company. Therefore, it sometimes makes sense to ask your Credit bureau information before applying for a loan. This is often beneficial if the old or false information raises the interest rate on your loan.

By ordering the Credit bureau information, your information is automatically updated to the latest state of knowledge. 2. Here’s how to subscribe to your Credit bureau information free of charge once a year. According to section 34 (4) of the Federal Data Protection Act (BDSG), the Credit bureau is required to provide the Credit bureau information once a year free of charge. You can only order the free Credit bureau information by mail.

Credit bureau information online

Credit bureau information online

So you can request the Credit bureau information free of charge: To mineCredit bureau.de Overview to 34 BDSG: Credit bureau free download of the application for your Credit bureau information online. You can print the application for free in German, English or Turkish. Print out and fill in with your details.

Attention: For the free Credit bureau information the function “order credit check” can not be selected, otherwise you will pay 24.95. Please apply early for the Credit bureau, as the preparation may take up to 6 months. You can send this request to the following address to receive the Credit bureau information:

Instead of printing the letter, you can also send it online. Credit bureau takes care of the activities of your accounts, mobile phone contracts, telephone contracts, loans and cards.

An attractive loan type: Use your default value

It can be difficult to get a home loan in the bank as you have to meet a number of requirements to be approved as a borrower. While it may take a lot of effort and the application process at the bank can be lengthy and complicated, there are a number of benefits if you make a loan agreement with your bank. In addition to the interest rate on bank loans being among the lowest on the market, you have the opportunity to make use of the free value of your home. There are several factors that make it attractive to use your deductible if you lack the financial means to fulfill your dreams.

 

What is value added?

What is value added?

To understand what the cover value covers, you can think of your home as a form of piggy bank. When you pay off your mortgage on a monthly basis, you also increase your home value. Thus, by repaying your home, you will have greater and greater opportunity to borrow money in your home. But how exactly does one calculate its free value? It’s actually quite simple. The free value is defined as the difference between the value of your home and the debt in the home. For example, if you have a home appraised at 4,000,000, you have a home value of $ 2,000,000 and you are still missing out on paying $ 2,000 of your loan. Over time, your default value will increase as you automatically repay your bank loan. However, there are still rules if you want to make use of your fair value. You can borrow a maximum of 80% of your face value. If we use the above example again, it means that you will have the opportunity to borrow up to $ 1,600,000. Of course, it is entirely up to you to choose how much of your deductible you want to lend.

 

Therefore, make use of your fair value

financial loan

First of all, you have to do it because it’s one of the cheapest ways to borrow money. The interest rate is incredibly low, because the bank already has your mortgage. It is therefore a very secure loan for the bank, which is why the loan terms are extremely attractive.

In addition, the free value is interesting because there are no restrictions on what you can spend your money on. You can choose to use them for more practical purposes such as bargains or investments, but you can also choose to go on the exotic journey that you have always dreamed of. It’s totally up to you.

Investment loan – definition, functionality, provider

Companies need or want to invest in order to remain marketable. Investments, however, in most cases reach a volume that makes sense for financing, investment finance, either necessary or from a business perspective. Financing in the form of an investment loan definitely spares the capital resources of the companies.

What is an investment loan?

What is an investment loan?

With an investment loan, companies can finance fixed assets such as machinery, vehicles or means of production, but also real estate, in the medium or long term. The capital goods often serve as security as well.

You will find tailor-made financing offers especially for companies at Cimptons the finance portal for medium-sized companies:

  • Corporate loans up to 750,000 USD
  • Operating loan
  • factoring
  • Commercial real estate financing
  • Finance or lease machinery and vehicles

With and without state funding

With and without state funding

In investment finance, a distinction must be made between two approaches:

  • The classic financing without state funding
  • State-subsidized financing

External and internal financing

External and internal financing

For investment financing, both the different external financing and the internal financing are available:

External financing is becoming more important. Of the framework conditions, the investment loan, if it is funded by the state, is the most interesting option.

The classic investment loan without state funding

If there is no state funding from the Credit Staire or another state or promotional bank, then there is primarily only a classic investment loan to choose from. The bandwidth starts at 5,000 USD and is theoretically open to unlimited.

Capital goods, whether a computer system or a production line, are depreciated. The depreciation periods, in turn, are specified by the Federal Ministry of Finance (BMF) for the respective capital goods (1). But what has the depreciation period to do with financing?

As a rule, the financing period is based on the amortization period via so-called repayment financing. A calculation example for an investment volume of 20,000 USD, an annual interest rate of six percent and a depreciation period of five years:

The state-subsidized investment financing

The state-subsidized investment financing

The subsidized investment financing can have a variety of characteristics. Especially interesting for young companies is the variant in which up to 80 percent of the loan is covered by a state guarantee.

Particularly profitable are loans with subsidized interest or repayment in the first year. Using the example of L-Bank, the Landesbank Baden-Württemberg, we would like to point out a regional funding for investment financing.
Be promoted

  • Participation, acquisition or relocation of a company
  • Expansion, modernization, rationalization
  • Financing through subsidized promotional loans

Target groups for the promotion are small and medium-sized enterprises (SMEs), businesses and freelancers.

In addition to pure investments, investment costs are also promoted:

Business investments

  • Takeover of a company
  • Expansion, modernization, rationalization
  • relocation
  • Participation in a company

Eligible costs: investment costs

  • Land, buildings
  • construction work
  • Installations, machines, equipment, facilities, EDP
  • Takeover price for companies or company shares

An important criterion at L-Bank is regional orientation. For example, L-Bank requires the following for its investment loans:

“Investment location: rural areas –
The investment must be made in rural areas in Baden-Württemberg. For the rural area, all municipalities count among 50,000 inhabitants, in the districts Böblingen, Esslingen, Göppingen, Ludwigsburg and Rems-Murr with less than 30,000 inhabitants. “

The Intrasavings Bank promotion

The Intrasavings Bank promotion

Intrasavings Bank is available as a supraregional contact. The Frankfurt Institute offers different funding programs, geared to the respective investment project. For energy-efficient measures, separate financing is once again available.

The classic investment loan, Intrasavings Bank’s 044 funding program, is available to freelancers and innovative medium-sized companies that are involved in innovative segments. The company must exist for at least two years. 

  • investments
  • resources
  • warehouse

The minimum amount amounts to 25,000 USD, the maximum loan volume 7.5 million USD.

The investment loan for classic companies

The subsidized financing in Intrasavings Bank’s program 037, Intrasavings Bank Entrepreneur Loan, is much more comprehensive:
investments

  • Purchase of equipment
  • machinery
  • Land and buildings
  • building-costs
  • Furnishings
  • Commercial vehicles
  • Operating and office equipment
  • Intangible investments (licenses and patents)
  • Software and computer
  • Establishment and expansion of broadband networks

Operating resources (means for ensuring ongoing operation)

  • warehouse
  • Acquisition of assets from other companies, including acquisitions and active participations
  • leasing

Businesses and freelancers with a turnover of no more than 500 million USD per year are funded. The loans can be up to 25 million USD and cover 100 percent of the investment costs. Intrasavings Bank assumes a liability exemption of up to 50 percent of the loan amount.

Leasing

Leasing

Investment financing through leasing is the simplest option. The leasing contracts generally include a full-service service. This means that the lessee does not have to worry about maintenance or repair of the leased goods, as these tasks are contractually with the lessor. However, leasing only applies to production goods. Goods or raw materials can not be financed under a leasing contract.

The following table shows the areas in which leasing is predominantly used:

However, it always remains a calculating example for the individual company when leasing is worthwhile compared to an investment loan.

Lease offers from 1.99% especially for companies can be found at Cimptons the finance portal for SMEs.

Equity financing

Turning public-sector companies, freelancers and SMEs, into investment finance, barring shareholder loans or capital increases. Due to the size of the company and the company structure, they usually do not qualify for investment financing.