The 3 things to know:
- Self- employed: individuals who work on their own by a VAT number
- Income document : the Unique Model must be presented
- Compare the loans and choose the one that best suits your needs
The personal payday loans sector is a branch of the credit circuit that is even more complicated and insidious than that of bank loans. This is because these are money loans for different purposes, smaller and less guaranteed figures. The loan agencies, in fact, often have judgments even more severe than the banking ones. Often, among the requisites requested by the supplying agencies it is essential to be employees. Freelancers, holders of VAT, may encounter more difficulties in obtaining capital on credit. How should one move in this particular circumstance?
Personal payday loan: because it is more difficult to obtain than a mortgage
The mortgage is a rather substantial sum of money that the bank provides for a specific purchase. In fact, to obtain a mortgage, it is necessary to hand over to the bank all the documents relating to the property you are buying, to the activity that is being started or to the renovation work that you intend to do with the figure obtained. This is a guarantee not just for bank institutions which, generally, ask for a mortgage on the property for a further guarantee, before disconnecting the final check.
Personal payday loans, on the other hand, are small amounts of money that are asked of agencies specializing in credit and micro-credit, and can be used as best as one believes: simply, simply, to have liquidity useful for facing a moment of life economically complicated.
These dynamics, of course, place the financial agency in a more vulnerable position than the one in which the banks find themselves when they grant a mortgage. For this reason, the financial ones, as far as personal payday loans are concerned, are rather severe and require important guarantees before giving up money as a loan.
Freelancers: who are they?
First of all there is an important concept to be clarified. A freelancer means all those individuals who work on their own, in a VAT number, with a round of business and personal customers and no company at all. Fall into this category:
- lawyers with a personal study
- architects with a personal study
- accountants, accountants, tax consultants on their own
- freelance journalists
- occasional lenders of work
- financial advisers, business brokers
- personal trainer, personal shopper
- personal tutors at various levels
- physiotherapists, masseurs, beauticians or hairdressers at home
- home nurses – online workers Business owners, merchants with a store or a physical registered office, members of associated offices (large firms of lawyers, engineers, surveyors, doctors, dentists or accountants) are instead treated at equal number of employees. This is because, despite being freelancers and VAT holders, they refer to a physical location managed by several people, with a structured work pattern and, potentially, insured commissions or monthly fixed rates.
The freelancers who work in full autonomy, of course, earn according to the temporary turnover, the period, their personal commitment. This does not allow them to have a fixed income or a secure income but their earnings are fluctuating, often even with large divergences between one month and another or a year and another.
This variable, neither predictable nor calculable, is not a feature much appreciated by financial companies that provide personal payday loans. Employees, on the other hand, can guarantee, by showing the work contract and the last pay slips: the security of having a professional contract that covers the entire duration of the loan; the security of the monthly salary, in terms of a constant, precise figure that extensively covers the value of the installment to be repaid. These guarantees, a freelancer cannot always give them.
Can a freelancer get a personal payday loan?
Until a few years ago, for freelancers, obtaining personal payday loans was almost impossible. In the last period, however, even Italy has had to adapt to the European trend and to the new vision of work. Nowadays, in Italy, there are more than 5 million freelancers : to exclude such an important number of people from the credit circle would be discriminatory, as well as counterproductive for the profits of banks and financial institutions.
Thus, along the lines of this reasoning and following the example of countless other European countries, Italian financial institutions have also opened up more possibilities in the category of loans to self-employed workers. Nowadays, for a lawyer, an architect or a freelance, it is no longer utopian to get a personal payday loan.
However, it should be emphasized that, although there is no longer any prejudice and it is not denied regardless, the practices of freelancers are always subjected to some additional verification and require some extra guarantees.
personal payday loans are a category of loans which imply the provision of rather limited figures. If a freelancer is able to bring good documentation and offer excellent guarantees, it is not difficult for him to obtain capital comparable to those granted to employees or to pensioners. According to Istat, the average amount of loans disbursed by financial institutions is around € 10-15,000. Some financial companies, however, also have specific repayment plans for customers who need more important amounts, up to 50,000 euros.
The personal payday loan, generally, does not oblige to inform the financial company about the way in which the money obtained will be managed, invested or spent. In the case of a personal payday loan for freelancers, however, explaining the purpose for which the money received will be used can, in some cases, be a point of advantage to obtain a positive response.
Generally, personal payday loans are asked for several reasons: the need to make an important purchase: for example, home furnishings, improvement and renovation works, the car; need to expand your business, your study: change the furniture, move to a larger office; need to pay outstanding debts; need to have liquidity to use without affecting the capital invested, bound or destined to other situations; need to deal with unexpected expenses; need to help children: for example, University fees, rent advance for an apartment in a university town
Which documents must be submitted to obtain a loan for freelancers
To obtain a loan from freelancers, lenders or freelancers, it is necessary to present the following documentation:
- identity documents: identity card (or driving license, passport) and social security number (or health card)
- residence certificate and family status
- a recent utility bill or, alternatively, a recent account statement
- an income document
- possibly, the signature of a guarantor
The income document, for freelancers, is represented by the Single Model. The Single Model shows the figure of annual earnings: it is therefore possible to use it as a reference for monthly revenues. The problem is that the Unives are not all the same because, in self-employment, a year can be much more profitable than the previous one and vice versa.\ For this reason, the income documentation for the last 3 years of activity is usually required. If the last three Unique Models show a good income and a good coherence between them, the loan will surely be disbursed without too many problems and difficulties.