If trainees need financing through banks or savings banks, then successful conclusion of a loan agreement depends on several factors. Although a regular income is available, but its amount is usually not sufficient to support a greater financing for trainees.
Which loans are eligible for the bank?
Financing for trainees can be achieved relatively easily at the bank, as long as not too large sums are needed. Usually, banks have no problem with granting apprenticeships a credit line. This offers the borrower some advantages: it can – but does not have to – be claimed at any time and repaid flexibly from the monthly income. The amount of a contingency loan depends on the amount of regular income. As a rule, the credit line is based on a multiple thereof.
Up to this frame can be freely disposition credit available, only in case of claims in addition one speaks of an overdraft of the current account. The disadvantage of this loan is the associated costs. Interest rates are at a much higher level than installment loans, as the bank does not know exactly when the loan will be repaid.
Generally speaking, as soon as possible. However, the interest rate only takes place for the amount actually used and exactly to the day. Financing for apprentices can therefore be very beneficial for a credit line. And if there is a possibility, you should not refrain from keeping them open.
But if larger sums are needed for the financing of trainees, you will hardly get around as a borrower to the involvement of third parties. We are talking about guarantors and co-applicants, who help the trainee to gain more collateral. The guarantor should be responsible for a partial or full repayment of the loan in the event that the applicant can no longer meet the debt service.
For this, of course, it is required that he brings along appropriate collateral in the form of a perfect credit rating. There must therefore be no credit entry that significantly limits the ability to service the capital. Also, the income should have a sufficient amount and also come from non-self-employment. Corresponding wage and salary statements are requested by the bank when applying.
The situation is similar with the co-applicant. The difference to the guarantor lies in the fact that the latter is not liable from the beginning on the sole responsibility, but only when he has to take over the debt service. Co-applicants are in practice usually relatives of the applicant, since it requires a certain amount of trust. However, once all the conditions have been met, both can help to ensure that funding for trainees is fully mobilized.
Financing for apprentices via the trade credit
A form of credit, which usually requires no proof of income or credit information, is the dealer or trade credit. However, this is subject to a significant restriction: The borrowing is tied to the purchase of a certain – usually high-priced – product. This loan is secured by the reservation of title. This means that the buyer will not become the owner of the purchased good until it has been paid in full. Otherwise, the dealer reserves the right to reclaim the goods.
Some dealers also cooperate with banks in the allocation of such loans. And whether or not it qualifies as a financing for apprentices depends on whether this bank conducts credit checks and, if so, how strictly the restrictions are handled.