Higher own contribution, longer income period, more accurate verification, but also preferences for selected professional groups. This is how you can characterize housing loans taken out by people running a business
Recently, some institutions have tightened their criteria and obtaining financing has become more difficult.
Loans for people running a business have always meant the need to provide a much larger number of documents than for full-time employees. In addition, the business had to be carried out long enough so that the bank could verify income stability and confirm that the borrower’s business was still developing.
Activity “from yesterday”, loan not earlier than in a year
If we run a business and want to have a large selection of banks, then the income period must be at least 12 months. Only a year after the establishment, a large group of banks are willing to grant a loan. However, it should be remembered that in some institutions we have to wait much longer. In this respect, Deutsche Bank is last, with a minimum condition of running a business for at least 2.5 years. It is also worth paying attention to the banks that stand out positively in the ranking. At PKO BP, if we settle accounts with the Tax Office using the Tax Revenue and Expense Book, we can theoretically apply for a loan even after 6 months.
Also Good Finance Polbank is willing to accept such a short time provided that we are a sole proprietorship and we have a permanent cooperation agreement based on self-employment. In the case of this form of business, other banks are also sometimes more willing to consider the application more favorably. If until now we have been employed full-time, and now we are conducting business activity within the same industry, then the required period of conducting business will be shorter, for individual assessment by the bank.
Recently, we have observed some tightening of bank policy regarding the period of conducting business activity. Credit Agricole has extended its requirements from 18 months to 24 months, and the required period has doubled at Bank Pocztowy and is also 2 years.
The industry matters
In the context of the required period of running a business, it is also worth paying attention to linking this requirement to the industry in which the entrepreneur operates. At Credit Agriocole, if it is a risky industry, e.g. construction, transport, then the minimum period requirement is much longer. In this situation, the business must be run for a minimum of 5 years! Getin Noble Bank also expects a longer internship from those operating in construction.
You run a business – show your own contribution
Banks have slightly different requirements in terms of own contribution. In Credit Agricole and Deutsche Bank, an entrepreneur must bring 10% more own funds compared to full-time employees.
Despite the tightening of the requirements for persons conducting business activity, none of the banks has differentiated the price conditions so far. Both clients employed under an employment contract or civil law contracts or having their own business within one bank can count on the same interest rate. The loan price (commission, margin) is influenced by the amount of the loan, the value of the collateral, use of other products, but not the method of obtaining income.