Self employed: which loan solution is best for your situation?

What legal form?

In Switzerland, a self employed credit request depends mostly on the company’s legal form. A self employed usually registers his business under one of the following legal forms:

• Sole proprietorship: it is the easiest legal form to register. The self employed is personally responsible for his company. The owner pays personal income tax on profits from the business. There is no separated tax declaration.
• LLC and Ltd companies: this legal form is essentially made to distinguish the self employed (natural person) from his company (legal person). The LLC’s or Ltd’s constraints are heavier than a sole proprietorship’s, but it is more suitable when a company already has a few employees.
• General partnership company: this legal form mostly applies when a few independents want to build a company together.

Legal form and loan

In the case of a self employed loan, it is the corporate name that will determine which credit type the independent will have access to.

• Sole proprietorship: the self employed will make a loan request on his behalf. His request will be accepted or not according to his own financial situation, stated income, and his latest tax declaration. A minimal income of Chf 60’000 per year is usually requested. The personal budget will also be taken into account (rent, family situation,…)
• Other type of legal forms: for other legal forms, the credit can be requested on behalf of the self employed (personal loan), or on the company’s (SME credit, see this page).

Self employed loan: on the company’s behalf or on yours?

For independents owning a LLC or Ltd, both choices are possible.

• On the self employed behalf: the procedures are sightly faster, but the amounts at disposal are limited. It usually is a loan with personal purpose.
• On the company’s behalf: the administrative procedures are sometimes slightly more complicated. It is important to get some advice from an expert who will help you obtaining a loan without any complication. Mutlicrédit for instance is specialised in both personal and SME credit. On the other hand, with a loan on the company’s behalf, you will benefit from a larger amount at disposal and you might also have a more advantageous interest rate.

Consult an expert

Getting advice from a professional expert is always the best thing to do. Our partner Multicrédit will be able to offer you various solutions and help you at any times if you are looking for a self employed loan!