Is it possible to get a loan under a mandate contract?
It is known for a long time that banks and loan companies prefer clients who have an employment contract of unlimited duration. Customers with this type of contract are definitely safer for the company that grants loans. It is true that there are no guidelines regarding the minimum length of contract work for fast online loans, but the requirements that must be met when applying for a loan can help outline the picture. When applying for a loan, the minimum working time on the commission contract is at least 12 months. In the case of employment contracts, they are only 3 months. So it’s a 4-fold difference. These requirements do not arise from the malice of banks against people working on so-called “junk contracts”. As for customers, banks want loans to be repaid on time.
Ranking of loans under a mandate contract
A person with a mandate contract is a more risky customer because they are not entitled to any benefits, unlike an employment contract. Take, for example, dismissal. In the case of a regular mandate contract, an employee can say goodbye to the job overnight, be it because of the boss’s bad humor or the weakening market situation. In the case of an employment contract, depending on the internship in the company, the employee is entitled to a notice period of several weeks and often severance pay, in the amount of several months’ salary. Similar differences are in the case of sick leave. Employees under a mandate contract are not entitled to any benefits in this respect. When the employment contract is on sick leave, the employee receives all or part of the remuneration.
The vast majority of loan companies grant payday loans to persons working on commission or specific work contracts. In the following ranking we put the ones with the highest granting, but you can easily choose another one by checking the rankings of installment loans, all payday loans and payday loans without BIK.
As you can see, lending to people on contracts is a higher risk, not only for the lender but also for the lender. However, a large proportion of non-bank loans grant quick payday loans via the Internet, also to persons employed under a mandate contract, even if they work for a given employer for several months or less. It is also worth knowing that the lender usually does not verify the data provided in the loan application. The employer number is usually required in order to have someone to contact in addition to the borrower if he is not repaid within the set deadline.
Is it difficult to get a loan on the commission contract?
Do payday loans companies create additional problems if we choose the “commission contract” option? We know from experience that there should be no additional problems with this. Internet lending companies almost never verify the employer’s identity. Working time in one company will also be important. The longer we work, the bigger it will be for us. The loan company sees that we have stable employment and do not jump from flower to flower. Which undoubtedly makes us more responsible borrowers. Another advantage will be working in a large company. Usually, in the application we can choose how many more or less people are employed in our workplace. Although loan companies are trying to protect factors that are taken into account when considering a loan decision, we know from a trusted source that the more people work in a company, the better. In larger companies, employee turnover is lower and they fall less often, unlike small businesses and sole proprietorships.
What to look for when using this financing option?
At the beginning it is worth realizing what our stability of employment is. As we have described before and probably as everyone knows working on a commissioned contract or a contract for specific work, you can lose your day-to-day work. A plus may be a fixed-term contract, preferably for a long period. Then we have a certainty that we will receive for several months ahead, and in the event of termination before the end of its duration, we will receive more favorable terms and notice. Another rule worth sticking to is not borrowing more than three times your monthly salary, minus rent and necessary expenses. Thanks to this, you can easily protect yourself against random events and repayment will be much easier.
How can you improve your employment conditions for a junk contract?
The answer to this question is certainly not obvious, because each case of employment is different and often requires different actions. However, there are several universal ways that almost anyone can use. The first, obvious, but rarely considered, especially if we attach to one plant, is a change of job. The Agree Bank website, which has long offered a comparison of earnings of people in similar positions, can be helpful. This can be a good reference point to negotiate a raise or look around for another workplace. Another is switching to a B2B agreement.
This change does not always pay off, but if we earn enough to pay the accountant ($ 50 per month), we can ask for consultation on this subject. If the accountant approves our idea, then this change will benefit the employee and the employer. Because the gross salary you have under the contract is not the only cost to be borne by the employer when hiring an employee. Often, even more than 20% is money that the employee will never see before, and the employer is obliged to pay it to you. The employee cost optimization options are many. In addition to traditional sole proprietorship, many people choose LTD, which is the equivalent of a company in England. The advantage of this solution is that we do not have to pay ZUS (In Poland it is $ 500 for the first two years, about $ 2,000 later). If we want to ensure a stable future, it is worth getting interested in IKE and IKZE funds that guarantee a much higher pension with a lower contribution compared to ZUS.
Are there other ways to get a loan on a commission contract?
Even in the case of negative consideration of applications in non-banking institutions, we still have a chance for a loan. You can take advantage of the growing popularity of websites dealing with so-called “Social lending”, i.e. they speak Polish social loans. Borrowing from private investors has the advantage that BIK, BIG and KRD databases are not verified, so everyone has a chance to borrow. In Western Europe this market segment will develop so much that even people who have a good credit history often use social loans due to cheaper costs. Finansowo.pl is the most popular platform for this type of loan in our country. Thanks to this, also people working on commission contracts can get a loan, without BIK, KRD and BIG.
Reaching for quick payday loans via the Internet is not always the best solution
Of course, there are cases where there is no other way than borrowing money online, but in some cases you can avoid it and save yourself extra costs. For example, if we can’t afford a new car or a long vacation abroad, then a loan is not the best option. If we do not have savings, it is easy to fall into the habit of borrowing, which will generate a lot of future costs and may increase to the scale of a serious problem.