The form of the contract with the employer has a huge impact on attractive credit terms. What’s more, the bank always takes into account the individual predispositions of its clients.
The loan agreement can be negotiated, and the offer can be created in line with the borrower’s expectations and financial capabilities. The main thing is for the bank to assess a person who needs financial support as a reliable customer who is able to pay.
Not every type of employment gives such a guarantee, not all banks accept, for example, a source of income that results from a mandate contract or a specific task, especially if they are concluded for a short period, e.g. 3 or 6 months. Today, however, we present the basic conditions of those institutions that provide such an opportunity.
The employment contract and the commission/work order
Indeed, future borrowers whose income is generated on the basis of an employment contract are in the best position. This allows you to get a stable financial situation, also provides assurance of solvency. However, it is known that the amount of such income is not always sufficient to enjoy the financial support of a given value.
Therefore, most banks accept additional income, generated on the basis of a specific task or commission contract. The higher the borrower’s earnings from various sources, the greater his creditworthiness. If you want to quickly calculate your income, use the intuitive salary calculator.
It turns out that the work/commission contract is very often used to increase creditworthiness. It is enough to prove its continuity for a specified period (3 or 6 months depending on the individual requirements of Good Finance) to obtain a positive decision under the loan commitment.
At a time when junk contracts are commonly used by employers, banks had to slightly change their approach to assessing creditworthiness due to the source of achieving monthly earnings. It is also worth considering more and more “free professions”, which are performed primarily on the basis of these contracts. Here you can mention artists, actors, architects and other people who receive remuneration for individual talent. If banks did not honor such agreements, a large number of potential customers would not have a chance for financial support.
The contract for specific work/order and type of loan obligation
The best situation is for borrowers who generate income from a specific work/commission contract only and the employment contract remains the main source of their earnings. Those who work only on so-called junk contracts, they can also apply for loan commitments, but they will be offered completely different, often worse credit conditions.
Moreover, not all banks make all their products available to such borrowers. Most often, on a commission/work contract, it is possible to take out a loan for any purpose or a special purpose loan that is not of great value. There are still rare cases where a mandate or specific work contract would be sufficient to obtain a loan agreement by applying for a mortgage.
Conditions to be met by the borrower
It is also important that banks impose certain restrictions on their clients. When taking out a loan under a mandate contract, the borrower must take into account:
– higher interest rate,
– shorter duration of the loan agreement,
– the need to pay a higher commission for the loan disbursement,
– the need for additional collateral for the loan obligation, for example through own contribution, mortgage collateral or guarantor,
– the need to purchase additional Good Finance products, such as a paid Good Finance account, insurance policy or investment instruments such as a savings account or a deposit.
The formalities that a borrower must meet when applying for a loan under a mandate contract or work are often more complicated, and the entire process of obtaining a positive decision may take a little longer. Credit analysts assess not only the amount of generated income but also other factors that affect the client’s stable financial position.
To this end, the future borrower must provide a salary certificate, account statement, document confirming the continuity of orders and documented assurance of the employer that further regular cooperation will be undertaken. It is often necessary to take out credit insurance, which comes at an additional cost.
What can you use the loan for a commission contract?
Banks offer their client’s really flexible terms of credit obligations. All because the financial services market is very competitive and institutions of this kind must fight for every potential recipient. That’s why for at least a few years, loans are not only cheaper, but more people can take them.
Lenders are giving up restrictions that until recently blocked them from using financial support. The whole package of favorable conditions applies not only to the procedures for applying for a loan or tolerating various sources of income generation when calculating creditworthiness but also to the allocation of funds obtained. The cash loan has thus become a big competition for payday loans, available in companies outside Good Finance. However, the question of whether cash loan or loan, you must answer yourself, checking their conditions and your options.
Today, a cash loan, regardless of the borrower’s form of employment, can be used for any purpose, but special-purpose loans are also offered. If only the borrower is credible and the commission or work contract gives grounds for the credit analyst to consider that it is fully solvent, the loan obligation may be taken for renovation, car, training courses, dream vacation, furniture, household appliances/electronics, and even an apartment. The higher the income from the work/commission contract the borrower generates and the longer his cooperation with the employer, and the more regular the proceeds, the higher the loan value he can incur.
It should be remembered that special purpose loans may be more profitable, but the bank imposes additional conditions on the borrower which he must meet. First of all, it is necessary to indicate the purpose, and after its acquisition account for the purchase. Therefore, an invoice, bill of sale/purchase contract must be delivered to the bank. The borrower may not use the funds received for a purpose other than the one indicated in the loan application.