For agency workers, borrowing is linked to a number of hurdles. Especially banks will find it very difficult to lend a loan for temporary workers because there are too few collateral. Although temporary workers have an income, this is not to be regarded as regular and often even at a low level.
When do temporary workers receive a loan from the bank?
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For banks, it is particularly difficult for temporary workers to get a loan. Because they always demand a safe and regular income to be able to grant a loan. However, this can not be demonstrated as a temporary worker or only to a limited extent. It is true that at the time of filing the application there may be an income which would allow a loan to be readily applied for to temporary workers under other circumstances, but the permanent employer or long-term employment relationship is missing. As a result, banks do not know whether the applicant will continue to be able to provide the debt service, ie the monthly payment of interest and repayment.
If one receives a rejection from the bank, the applicant should in any case even ask himself the question whether a loan for agency workers makes sense in his situation at all. After all, it is temporary workers who must be the first to leave a company when, for example, there are drops in sales or cyclical sales fluctuations. Your own workforce can not be brought in as security. If, in the long term, taking on a permanent position is possible, it is better to wait for it. With a permanent position, the bank can achieve significantly better conditions.
In urgent cases, however, it is possible to get a sponsor or co-applicant on board. However, both must in turn have the collateral required by the bank. This means that both guarantor and co-applicants need to be able to handle the credit obligations on their own if the actual claimant can not afford them on their own. For the co-applicant, an immediate, direct liability applies. So he has to stand by the contract for a smooth repayment. The guarantor, on the other hand, will not be prosecuted until the claimant can no longer pay.
In some cases, however, it is also possible for a loan for temporary workers to be granted by means of a credit line. This is especially the case if the applicant is a longtime customer of the bank and despite the temporary work can always show reasonably stable cash flows. However, this loan is very expensive compared to traditional installment loans and should only be used when there are urgent financial bottlenecks. The amount of the maximum sum with which the account can be managed in the nominal amount is based on the monthly income of the borrower and is two to three times, but can also be set lower for temporary workers.
Even with traders it is possible to get a loan for temporary workers. In fact, these companies often provide their customers with financing that is often very favorable (such as 0% financing). Proof of income is normally not required here, which is why temporary workers should easily get a loan here. It should be noted, however, that the goods themselves serve as security. Due to the retention of title, the merchant remains the owner of the goods until it has been fully paid.