If you want to take out a loan for start-ups with negative private credit, then this is a loan request, which requires intensive processing by the bank’s corporate client advisor but also by the borrower himself. So prepare thoroughly for the loan application!
This preparation consists of various phases, the “tidying up” of one’s own private credit entry, the search for alternative sources of funding and also the provision of collateral. So you can prepare well for the loan for start-ups with negative private credit:
Step 1: Clean up, settle the open positions with the creditors
Many a negative entry in the private credit is based on a dispute with, for example, a mail order company or a telecommunications company. If there is still an open, demanded and registered claim, you could contact the creditor. And there ask how fast he releases the private credit entry for deletion, if you pay for a part or the entire claim.
This is particularly useful in all cases when the dispute has started with a different contract interpretation or an exchange has begun and both sides have not agreed. Even if you have outstanding loan installments, you should pay them back first to signal reliability. The reason for this is that even in a low-interest-rate phase you can not expect banks to take on further risks despite a very low interest margin.
Step 2: Check all funding opportunities and sources of money
In the case of a loan for start-ups with negative private credit, both the lender and the borrower face a major challenge: In almost all start-ups and business openings, massive investments in the start-up phase are offset by later sales expectations.
Many companies and services need to be well known, so a period of red numbers seems almost inevitable in the early months. It is helpful if you can not just service the running costs from a loan, but other sources of funding are also available. Check all funding pots and ways to support the company foundation!
Step 3: Offer additional collateral or guarantees
If you do not have a good credit rating and maybe a negative private credit entry, then lenders like to see the risk spread across multiple people. If you have a guarantor in the relationship or the circle of friends for the credit for start-ups with negative private credit, then this can mean a significant risk reduction for the lending bank. According to the principle that more shoulders can also carry more load, the bank’s risk assessment is better.
As you prepare and follow through the steps, the chances of paying the loan are much higher!