Being a tradesman is nothing to be ashamed of; on the contrary, be proud of your activity. Being independent sounds great, but it is no honey, it will confirm every starting entrepreneur who is trying to succeed in our market. There are more than 2,000,000 sole traders in the Czech Republic, but only half of them are actually active. Even so, they make up one tenth of the population and should be viewed with respect, not only being dependent on themselves, but also employing thousands of people.
It is very difficult to finance such projects from your own pocket, so sometimes we have no choice but to look for some help in the form of loans.
Bank loan for self-employed
Bank houses do not only provide loans to employees, but also to people who have taken up business. Conditions may vary slightly, but you cannot do without your ID, trade license and tax return. If you are in business for less than 12 months, prepare at least a bank statement for the last 3 months.
Non-bank loan for start-up entrepreneurs
A significant percentage of applicants in banks fail, either because of lower incomes or because of a negative record in the debtors’ registers. Non-banking companies are more benevolent.
Many dozens of companies deal with non-bank loans, so be careful when choosing the right one. Keep in mind that the interest rate and APR will be higher than in the banking sector because they carry a higher risk. It doesn’t mean you can’t find a convenient online loan, but you know, cut twice.
Business loan is not for everyone
Every business sector is different and with it the phase we are currently in. Taking a loan at the very beginning is a much higher risk than when we have been doing business for several years. Consider carefully whether it is really worth it. Drowning all the savings in a failed project and getting into debt is nothing you want to experience.
Assuming your business has been operating for a long time and you fail to meet the demand, there may be a spot credit for the self-employed. The funds raised can be used for a new branch, material purchase or a new workforce.
Business is a long haul
Although you do not have to confess to your employer, business is associated with many pitfalls. Everything you have to ensure yourself and if you get sick do not count on sickness. In the beginning, you will be on your feet for 18 hours a day, without the right to pay. On the other hand, you are not limited by any limits such as promotion or wage increases. The first years are like roller coaster, once you have a great few months later you hardly pay the rent.
It’s worth it?
There is nothing better than the feeling of doing well. In business it is doubly true that what you do not have it, so is it worth the effort? Certainly yes, there is no better satisfaction when your customers adore your goods or services and keep coming back to you.