The financial industry is quite discriminating with regards to finance that's granted to the people. Generally, a number of qualifying criteria needs to be met before finance is granted. Financial institutions generally provide finance for individuals who are utilized full-time, who get a monthly salary.
This isn't always the situation, but most lenders require this of borrowers.
Common reasons for exclusion include the notion that commission personnel are not reliable, due to the unstable nature of their income.
While it can't be doubted that commission earner's professions can lead you to a particular level of uncertainty, the changing landscape when it comes to small company has made this much more of an obstacle than anything else.
When trying to get finance, it isn't uncommon for commission workers to be scrutinised more thoroughly. They also generally have to supply more proof of remarkable ability to pay financing back, because they pose different forms of risk.
How to improve your chances of getting a loan as a commission worker:
Keep in mind that having a credit rating is important. You need to be in a position to prove to potential lenders that you're capable of paying a debt off diligently and timeously.
You should also ensure that individual and business tax payments are up to date.
You must have a transactional account reflecting your earnings and expenses. This will make it easier for your affordability assessment.
To enhance your likelihood of obtaining a loan like a commission worker, you should provide proof of future contracts that look set to create income. This might assistance to decrease your degree of risk within the eyes of the lender.
In relation to home loans, remember that a larger deposit can make amends for additional perceived risks.
Documents usually required:
- Valid ID
- Latest 3 months' bank statements
- Latest 3 months' payslips
