How to get a Loan as a Commission Worker

Overview

The financial industry is quite discriminating when it comes to finance that is granted to individuals. In most cases, a number of qualifying criteria needs to be met before finance is granted. Financial institutions generally provide finance for individuals who are employed full-time, who receive a monthly salary.

This isn’t always the case, but most lenders require this of borrowers.

Common reasons for exclusion include the notion that commission workers are not reliable, due to the unstable nature of their income.

While it can’t be doubted that commission earner’s professions often include a certain level of uncertainty, the changing landscape in terms of small business has made this more of a hindrance than anything else.

When applying for finance, it’s not uncommon for commission workers to be scrutinised more thoroughly. They also generally have to provide more evidence of their ability to pay a loan back, as 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 history is important. You need to be able to prove to potential lenders that you are capable of paying a debt off diligently and timeously.

You also need to ensure that individual and business tax payments are up to date.

You should have a transactional account reflecting your income and expenses. This makes it easier for your affordability assessment.

To improve your chances of getting a loan as a commission worker, you should provide proof of future contracts that look set to generate income. This may help to lower your level of risk in the eyes of the lending institution.

In terms of home loans, keep in mind that a larger deposit can compensate for additional perceived risks.

Documents usually required:

• Valid ID
• Latest 3 months’ bank statements
• Latest 3 months’ payslips