No matter whether a private loan for the dream home, the new car or a new washing machine needed or for the jump into self-employment start-up capital is needed: Sooner or later, almost everyone comes into the situation, having to plan an important bank conversation. If you want to shine and persuade the bank consultant, you are ready for a comprehensive preparation.
Although the opinion is still spread today that banks are not partners but opponents of their own interests and that going to this place usually feels bad, a loan request is nothing out of the ordinary.
Although the level of consumer credit in Germany has fallen since 1999, installment loans are enjoying a steadily increasing popularity, with the total amount rising from 105.7 to 168.2 billion euros.
Thus, since 1999, the amount of total liabilities has grown, of which a large part of loans granted. The average debt of 30,200 euros, however, is well below the value of 2006, as each debtor had an average of 36,900 euros liabilities.
Companies spent the largest proportion of their lending on long-term investments, such as machinery, followed by passenger cars.
The right appearance
In the best case, the credit rating is high or the business idea is so brilliant that the bank accountant can not help but approve the loan. But to convince him of this is definitely easier if the first impression is correct or at least there are no unpleasant surprises here.
As so often, the question of the right outfit is not easy to answer. In any case, recommends something serious, which is also reasonably chic. Specifically, this means that men are well advised with a shirt and dark trousers, women with a business suit or a dress.
The suit or the costume then does not hurt when it comes to a large sum of money or even in advance is clear that the conversation will take a long time.
Find the right address
The role of the bank adviser is to critically review creditworthiness, which means that the likelihood is high that he will first criticize the project and express its doubts. It is important, however, friendly and reserved to the bank adviser occur.
The frame is formal – and should remain so. Even if the wavelength seems to be right, overly casual tone is inappropriate.
It is also helpful to explain directly what you would like to be able to formulate this clearly: initial credit, the increase of the credit line or the changes of existing conditions?
The first impression counts. This includes a punctual appearance. This not only has a positive effect on the bank consultant, but also relaxes one’s own situation. Hastened and with beads of sweat on the forehead, the conversation certainly starts less relaxed than after a timely arrival.
Accordingly, a buffer for delays in public transport or parking space search should be planned.
Not only the outfit exudes seriousness: it also leaves a good impression, if you have all the necessary documents together. Otherwise, the bank advisor has an annoying extra effort quickly, also affects the unhappiness unorganized.
As a rule, the bank will inform you which documents it requires:
- if applicable, a monthly invoice for the income and expenditure (budgetary accounts),
- the proof of income and
- in the case of a planned business start-up also the business plan and
- proof of existing equity.
Bear in mind that the documents submitted are the basis of the decision, coffee stains have as little to look for here as donkey ears.
In addition, it may be helpful to bring back completed applications or provide the bank advisor with additional documents such as confirmations or estimates. Maybe these are ultimately the tip of the scale.
With the decrease in collateral, the cost of the loan increases. Accordingly, it can not hurt to submit existing evidence of collateral.
- Securities and passbooks,
- and – for entrepreneurs additionally – customer demands, machines and stocks
Criteria of the bank
The bank has a few points that it asks potential borrowers, which essentially makes the decision on the pro or contra loan. It helps in any case to visualize these points so that suitable answers are at hand. Maybe it’s worth going to the offensive as well.
- Creditworthiness and creditworthiness:
The credit rating indicates whether the customer is legally and legally able. As a rule, creditworthiness is based on orderly private living conditions; entrepreneurs must also prove their entrepreneurial competence. Here the impression of the quality of the management, the professionalism of the company organization, customer structure or competitive intensity counts.
Private Credit information
It does not hurt to take a look at the Private Credit file before the interview. This avoids unpleasant surprises when the bank adviser refers to entries that you know nothing about. It is not about having the famous “no entries” in the Private Credit – every installment purchase is registered there. As long as you are a borrower to meet the liabilities regularly, but this is not a problem.
Even if there is no fixed regulation as to how high the equity ratio must be, companies and real estate from around 30% equity ratio are considered to be solidly financed. At a rate of 10%, however, it is difficult to convince the bank adviser. For companies, there are two options for increasing equity: in addition to increasing equity, the balance sheet total can be reduced
Private borrowers are more difficult. Collateral offers valuables. Once these are exhausted, it usually only helps to ask friends and family for a subsidy.
Important points in the credit agreement
A wrong decision or clause, which initially seems harmless, can threaten the financial existence in case of doubt. Before the conclusion of the credit agreement, it is therefore also on the part of the customer to examine the clauses intensively. After all, the official German is not always immediately understandable.
Unclear aspects have to be questioned, because even a bank adviser has room for maneuver – you are not forced to give up all points unchanged. Particular attention is paid to the following numbers:
- Amount of the effective interest :
The level of this interest rate depends on the reference interest rate – regardless of whether a variable or fixed interest rate is agreed. Be careful here if the bank lures in the first year with a dumping interest rate, but this increases significantly thereafter.
Also, it can not hurt to get several offers before actually deciding on a bank. Sure, the choice of the house bank is obvious – but does not necessarily have the best conditions. Especially when it comes to a high sum of money, a comparison can save cash. Of course, this only works if the conversation does not take place “shortly before it’s too late”, but there is a time buffer.
Typical mistakes in credit
There are a few pitfalls in every loan conversation, which in the worst case lead to the loan not being approved.
- Indicate a false loan requirement, fearing that the actual amount seems too much. The bank will interpret this as an incompetence in the calculation.
- Late application for credit. The bank is not thrilled when it is put under time pressure.
- Hiding facts and tricks does not lead to a relationship of trust. The bank wants transparency. You should also convey that.
- Unprepared appearance in the conversation seems unprofessional and technically incompetent.
- Short-term financing of investments via the MRP.
- Private spending is so high that the equity ratio is falling.
- They declare all free assets as collateral. Even the bank adviser is only a person to whom you should not completely surrender.
- Failure to calculate the debt ceiling results in borrowing that is too high and you will eventually be unable to service it.
- Breach of credit agreement through the use of the Dispos for long-term purchases, breach of information obligations or uncoordinated account overdrafts.
After the conversation
Of course, one does not start from the worst. However, should a conflict arise, it is helpful to request a call log signed by the consultant.
Although sometimes it seems that the Bank’s credit checks are not just a bully. After all, it’s about lending money to other bank customers – and having the duty to check the likelihood of that money coming back.
Maybe it will not work right at the first attempt with the longed for credit at the bank. But practice makes perfect and there are other banks where you can try your luck. After all, the criteria for lending are not the same everywhere and sometimes personal sensitivities also play into the decisions of the bank adviser.
It is important not to be discouraged immediately after the first cancellation.