A bad rating hardly makes cheap loans possible. Even if the house bank is no longer sufficient, often only a loan without credit bureau helps.The annual fee is unrivaled low. As a rule, the potential borrower only receives a small loan or consumer loan if a corresponding credit check is positive. In order to make this as cheap as possible, a number of things have to be taken into account, from creditworthiness to unscheduled repayment.
Sale of receivables versus cheap loans without own contribution
Even if the banking industry claims otherwise: For many companies, the road to the house bank is almost exclusively associated with errors. After the crucial turnaround of the Basel Agreement, credit institutions have to set much stricter standards when deciding on lending. Often the credit bureau information is the easiest way to get an initial overview of the funding opportunities of an applicant.
Loans without credit bureau information are the logical consequence of these developments. First of all, such loans without the foundation’s presentation may seem like the solution to a major problem. Because a bad credit bureau information does not always indicate a lack of readiness or solvency. Already one or two payment delays can contribute to a bad result and thus endanger your own creditworthiness.
But a rejection of the loan because of a false credit bureau result means that some companies, even with the best ideas, no longer have a secure footing. The negative certificate of the Schoenstatt Movement is all too often a self-actualizing premonition. It is not surprising that cheap loans without them are often quite questionable.
If a lender does not set up exclusion grounds – ie simply approve each individual loan application – this can only succeed if the resulting total cost of the loss is reimbursed with appropriate interest rate increases in the event of success. In this respect, the keyword “cheap” is always deeply related to these credit bureau-free bonds. Again, there are often many problematic provisions that can quickly turn down the merits of such a loan.
Above all, however, the question arises as to why so many companies even flirt with a “cheap” credit bureau-free loan if the factor offers them a much cheaper, safer and more reliable option. Quite simply: With factoring you sell outstanding debts to a factoring provider who pays you almost immediately and carries out the entire payment process for a small fee.
In many cases, the increase in liquidity corresponds to that of a loan and can protect you from insolvency in the event of sudden shocks. A big advantage of factoring is that the exposure risk determines whether and at which price a contract is concluded. If you are unable to obtain a bank loan, but have good orders, then the sale of receivables can have an undesirable effect on your capital.