Month: February 2019

The English Court granted in 20 days 70 million in loans for Christmas purchases

The English Court granted in 20 days 70 million in loans for Christmas purchases

  • In total, it has closed more than 100,000 contracts.
  • Most of the Christmas Advance loan lines are 300 euros.
  • The user can accumulate purchases made until January 5 and pay until February 28, 2015.

The English Court has closed in 20 days more than 100,000 contracts for Christmas purchases for an amount of more than 70 million euros , as reported by the distribution group on Monday, which has specified that most of the loan lines’ Advance Christmas’ are 300 euros, followed by those of 600 and 900 euros.

Specifically, about one third of the contracts correspond to the 300 euros loans, while the 600 and 900 euros loan lines oscillate around 20% each. By Autonomous Community, the one that more contracts accumulates is Andalusia, followed by Madrid, Valencian Community and Catalonia.

The community that accumulates the most contracts is Andalusia, followed by Madrid, Valencia and Catalonia

This initiative, which was launched on November 7 through Financiera El Corte Inglés, allows any customer to accumulate all those purchases that will be made in the face of the Christmas holidays and postpone payment based on their needs.

loans can be requested at El Corte Inglés and Hipercor establishments, although they can also be used at all Supercor and Supercor Express supermarkets in order to favor Christmas shopping both in the area of ​​food and household, fashion, accessories , toys, sports, leisure, culture, that is, everything that involves a celebration party and gifts.

The user, who can accumulate purchases made until January 5, has a loan limit that is based on their needs and ability to pay.

In this way, you can request lines of loan of 100, 300, 600, 900 or 1,200 euros obtaining an immediate response. Once your request has been accepted, you will receive an ‘Advance Christmas’ card with the amount of the loan granted. From that moment, the client can use his loan both in the physical stores and in the purchases he makes through the Internet on the El Corte Inglés and Hipercor websites.

Pioneer initiative

The company has highlighted that it is a pioneering initiative and unique in the market that allows to opt for different forms of deferred payment, depending on whether the user has a purchase card or not of El Corte Inglés. In all cases, the client can, as a minimum, postpone the payment of the loan granted until February 28, 2015 and settle it at once.

In addition, customers with El Corte Inglés purchase card can split the payment in three months without interest as of February 28.

Customers who do not have an El Corte Inglés card can benefit by submitting a payroll

The third option is to defer payment for an additional three months over which the client would pay interest on the remaining amount, that is, he would start paying on February 28 with a deferment of six months, the first three without interest and the following with interest but only about the pending amount.

Customers who do not have an El Corte Inglés card can opt for this new system just by submitting a payroll or proof of income and proof of direct debit, which allows them to postpone payment until February 28.

The card ‘Anticipo de Navidad’ is an additional line of loan that is added to the El Corte Inglés purchase card and the usual financing offered by the group, so the client can choose between any of the proposed options and even combine all these possibilities according to your needs.

This initiative has been accompanied by direct information actions for clients holding El Corte Inglés card.

Categories: Lenders

Typical reasons for rejecting loan for the self employed

Credit rejection often without justification by the bank!

Credit rejection often without justification by the bank!

If the desired self-employed loan is not granted, the applicant always asks why. But this is exactly where the problem starts, because as a rule, the loan cancellation takes place without any explanation of the specific reasons. With this anything but customer-friendly behavior of the bank, this wants to elude any discussion with the loan seeker.

The concrete reasons for the rejection of credit for self-employed can nevertheless be determined, if one analyzes the credit conditions of the bank! The typical requirements for a self-employed loan are as follows:

  1. Result from business evaluation is positive
  2. Average income in relation to the requested loan amount is sufficient
  3. several years of successful self-employment
  4. depending on the bank additional collateral such as guarantee

No standardized procedure for the loan for the self-employed!

In contrast to employee credit, banks often do not have a standardized audit procedure for self-employment loans. As a result, the above 4 criteria are handled very differently by different banks. For example, the assessment of the positive business evaluation of different banks can be very different. The same applies to the question of a sufficient average income in relation to the desired loan amount as well as the successful professional activity over, 2, 3 or more years. There are also very different conditions for additional collateral, depending on the bank. This makes it very clear that the self-employed is well advised to obtain an offer from at least 2 to 3 commercial banks. The collection of several offers is worthwhile, because the credit comparison proves to be particularly lucrative for self-employed people.

Typical reasons for declining the loan for the self-employed:

  • Business evaluation: sales and profits too low.
  • Requested loan amount too high in relation to the average income
  • Self-employment less than 2 years
  • No or too little collateral
  • Debt already too high
  • negative Private credit evaluation
  • Area of ​​activity is considered risky
  • Qualification of the applicant is criticized

Crowdlending as an alternative to the bank!

What to do if all else fails and no credit can be made despite multiple requests? Crowdlending as an option for obtaining credit is hardly known to many self-employed. Crowdlending is the term used to refer to loans brokered through an online platform that are given by individuals to other individuals (the self-employed, entrepreneurs, freelancers, founders, etc.) or companies. Crowdlending takes place on online credit marketplaces such as moneyor or creditend, which charge a fee for their brokerage activities.

Especially for small loan amounts – typically for self-employed people – crowd lending platforms are interesting alternatives to the bank. Many self-employed people do not know that traditional banks can offer a credit cancellation despite a good credit rating, as the bank’s lending business does not pay off.

Self-employed, tradespeople and freelancers 95% did not know that…

  1. … you should inform yourself about the credit requirements in detail, before you go to the bank or online!
  2. … Company leasing is a suitable alternative to normal corporate lending if there is no equity or otherwise tied up, or if the lines of credit are not to be charged further.
  3. … with the financial portal inancingent the credit chances increase at least 100% compared to the house bank and can save over 30% interest? More: SME tip: 100% higher credit chances and 30% interest savings!
  4. … Factoring as a credit alternative for medium-sized companies is not only an interesting solution in times of crisis!
  5. … inancingent can also be used to optimize commercial real estate financing.
  6. … the FinTech iwoca makes short-term bridging loans up to € 100,000 possible within a few hours and thus within one working day!
  7. … a financially strong guarantor definitely increases your credit chances?
  8. … the purpose of the loan may also be of importance in the credit decision of the bank.

Everything else about loans for the self-employed, freelancers, founders, entrepreneurs, tradesmen and small companies can be found in our practice guide loans for small businesses and the self-employed.

Categories: Loan