Loan for freelancers – is it easier to get it?

Loans for professional services can be granted on more attractive terms than traditional consumer credit. Who can count on lower interest rates and simplified procedures? See the list of free professions in Poland and find out what allows you to apply for a preferential loan for professionals.

What is a free profession?

What is a free profession?

The term legal profession is not clearly defined in the legal nomenclature. It is assumed that freelancers are highly specialized professionals, self-employed. They receive remuneration for contracts for specific work or work. Professionals from free professions often decide to start their own business. According to statistical data of the Central Statistical Office of Poland, companies of people with free profession already constitute 10% of all small and medium enterprises in the country.

Free professions in Poland

  • architects
  • doctors
  • Veterinarians
  • dentists
  • accountants
  • notaries
  • graphic
  • psychologists
  • developers
  • surveyors

Are banks more willing to provide loans to professionals?

Are banks more willing to provide loans to professionals?

Preferential treatment of specialists by banks can be observed for some time. Freelancers are by definition professionals with high professional qualifications, which should result in earnings adequate to their competences. Good education and entrepreneurship make it difficult for financial institutions to ignore such a group of borrowers. Of course, you can’t count on a loan if you don’t have creditworthiness. This condition is common for doctors, architects and full-time employees. At the outset, the lack of capacity disqualifies the potential borrower.

However, if you have no debts and have built a positive credit history, you have a good chance not only for credit, but also for better conditions, e.g. lower interest rates. Simplified procedures and a longer loan period are the most common facilities for freelancers. What is the reason for such preferential treatment? The secret lies in the statistical model of credit allocation. In assessing creditworthiness, banks use algorithms.

Before you pass the verification, you will be assessed not only in terms of earnings. Usually, age, education, marital status, place of residence, profession, etc. are also analyzed. If doctors, lawyers, veterinarians, translators or accountants are treated by the system as persons with a stable financial situation, this fact will be taken into account by the algorithm. So you can automatically count on more points in the scoring system. As a consequence, the loan for doctors will be granted on better terms than for a regular office worker. However, even as professionals, you have to take into account some restrictions. An often encountered limitation is the length of the internship, e.g. you will rarely receive a more favorable loan for free professions if you have been practicing for less than half a year.

Preferential conditions for public trust professions

Preferential conditions for public trust professions

The professions of public trust can be separated from the liberal professions – they are not completely the same groups. Professions fulfilling roles of a special nature from the point of view of public tasks and concern for the realization of public interest are considered as public trust positions. An additional criterion is functioning within the professional self-government assigned to a given profession. Practicing the profession of public trust also often involves the need to obtain certificates and approvals that go beyond the knowledge acquired during studies.

Most banks include in the profession of public trust:

  1. doctors,
  2. dentists,
  3. lawyers,
  4. legal advisers,
  5. tax advisors,
  6. statutory auditors,
  7. notaries,
  8. judges.

As you can see, some of the specialties overlap with free professions. However, people from the above list, due to the missionary nature of their work, can count on even better loan offers for professionals. This is because professions of public trust are considered professions for which the demand will not disappear regardless of the economic situation. In addition, doctors or lawyers can also claim very high earnings, which naturally qualifies them as premium clients, treated on separate terms.

What are loans for free professions intended for?

What are loans for free professions intended for?

Professionals aware of the challenges they face put on investment. Nearly ⅓ of those surveyed by Demuy Bank plan to allocate capital for this purpose in the next six months. It is also possible to observe a greater openness to financing investments from loans and leasing – 33.9% of respondents would like to use this form. However, the number of people ready to cover the costs from their own savings is falling, in 2016 it was 64% of respondents, and this year only slightly over 55%. This means that loans for professional professions enjoy greater confidence, which may be due to the improvement of the economic situation and the adjustment of the banks’ offer to the needs of professionals.

What would the money from the freelance loan most often be used by professionals? Before answering this question, a distinction should be made between consumer loans for any purpose and business loans. In the first case, the majority of Demuy Bank respondents, or more precisely 22.9% of respondents, indicated renovation or furnishing of the apartment as the goal. The second place was paid for vacation. In the case of expenditures on business development, representatives of free professions would allocate them to equipping with specialized equipment (23.4% of respondents). A large group of people are also planning to buy or replace a company car. 20.3% of respondents want to allocate funds for this. In third place with the result of 18.2% was the purchase of computer hardware and software needed for work.

How are freelancers perceived by loan companies?

How are freelancers perceived by loan companies?

Loan companies, like banks, also have their own individual scoring systems. On their basis, they assess the creditworthiness of borrowers. The privileged position of professionals does not, however, result from the fact that the institutions have issued a special loan offer for liberal professions. The high availability of online loans is related to the stability of specialists on the labor market and the amount of earnings of people working on their own.

A distinction should also be made between loans to individual customers and loans to companies. Many non-bank institutions offer loans for companies with much greater availability than similar cash loans for freelancers. A person with sole proprietorship in some situations can apply for funding on the first day of their business. A simplified procedure for applying for a loan for liberal professions is also a standard. In addition, you can enter such a loan in the costs of doing business. In most companies, you can complete all formalities online, and you will receive your loan in a few minutes.