Self-employed borrower (TNS)
A self-employed worker (artisan, trader, professional, micro-entrepreneur, majority shareholder-manager) whose income is assessed differently from a salaried employee. Banks typically require the last two or three annual accounts and calculate the retained income based on the average net profit or director's remuneration. A loss-making year or declining income significantly complicates approval.
Key points
- Banks rely on the last two or three annual accounts to calculate an average retained income.
- A loss-making financial year is heavily penalising and can block approval on its own.
- The legal structure (EI, EURL, SAS) influences how director's income is assessed.
- Accounts showing upward progression are the strongest argument for a self-employed file.
Frequently asked questions
How do banks calculate the income of a majority shareholder-manager of a SARL?
They typically retain the declared net director's remuneration, sometimes adding net dividends if payment is regular and sustainable. Some banks also add the share of undistributed net profit, though this is less systematic. The broker checks which approach the targeted lender applies before structuring the file.
Does a self-employed borrower need to wait a certain number of financial years before applying?
Most banks require at least two complete closed financial years to identify a trend. Some accept a single set of accounts for regulated professions (doctors, lawyers) whose income trajectory is predictable. Submitting too early risks rejection and the file being recorded in the bank's systems.
What mistakes should be avoided in a self-employed borrower's credit file?
Failing to provide complete tax return files for the last two or three financial years is the most common mistake. It is also important to avoid presenting poorly managed professional bank statements alongside personal ones. Finally, neglecting to explain a temporary income dip, even if justifiable, leaves the analyst free to draw an unfavourable conclusion.
In practice
A self-employed physiotherapist shows average net income of €4,800/month over three financial years with a steady upward trend. The bank retains this average as the reference income and grants the loan without derogation.
Official sources
- Obtaining a mortgage loan · Service-Public.gouv.fr
- Mortgage credit (official guide) · Service-Public.gouv.fr