Unusual Employment and Income Situations

PARRAMATTA, Australia - March 11, 2016 - PRLog -- An increasing number of people living and working in Australia are choosing more flexible working opportunities with their employers, as this enables them to successfully combine both their lifestyle arrangements and their family commitments.

However, many Australians have found that when it comes time to visit their local bank branches while looking for a home loan, car and truck loan or even equipment finance thattheir local bank is still apprehensive towards them says Frank Zelasko, Compliance & Risk Audit Specialist, Singh Finance. Because, by working irregular hours:

·         They don't seem to fit into the strict lending guidelines set out by banks; and

·         They are not seen by banks as holding down a stable job with a regular income.

When you read this article you will understand, how seeking the assistance of a professionally qualified and licensed finance broker can help these people with unusual employment and income situations. Finance brokers deal with many lenders / credit providers on a regular daily basis and they are familiar with the lending guidelines and credit policy requirements of a number of lenders / credit providers.

Here are some of the more common unusual employment types:

·         PAYG (pay-a- you- go) contractors

·         Casual workers

·         Part-Time workers

·         Self-Employed individuals

·         Sub-Contractors

·         People with other forms of income

Type 1 - PAYG Contractors

PAYG contractors are normally employed via an Agency or directly via their employer. This form of employment is now common in a variety of fields such as:

• Medical;
• Engineering;
• IT (Information Technology);
• Mining;
• Project Management;
• Construction; and
• Government.

So, if you are a PAYG contractor and you are looking for finance, here is a list of things that lenders / credit providers will require you to provide and which can make the finance process easier for you:

• You will be required to provide a copy of your most recent "Employment Contract", with income details listed;

Note: If you are not on the direct payroll of an employer or Employment Agency, you may be treated as being self-employed.

Type 2 - Casual Workers

This type of employment applies to people working on a casual basis in the following industries:

·         Restaurants;

·         Retail;

·         Teaching and Tutoring;

·         Nursing;

·         Childcare;

·         Trades;

·         Drivers; and

·         Cleaning.

If you are a casual employee, you will need to provide evidence that you have been employed at the same place for at least 6 months.

Lenders / credit providers will calculate your average earnings over a set period, and count this as your income.  However, if you want to work out your own average earnings, then you can use an Income Annualisation calculator to calculate your own average earnings.

Type 3 - Part-Time Employees

If you are employed on a part-time basis, you will find that lenders / credit providers will generally require you to:

• Provide evidence that you have been employed at your current place of employment for at least 6 months: and

• Provide copies of the following documents:

 ü  Current computerised payslip covering a minimum of two (2) pay  cycles to confirm details of your base income; and

ü  PAYG Summaries; or

ü  A signed letter of employment from your employer listing details of your current base remuneration.

Type 4 - Self-Employed Individuals

If you are self-employed and you run your own business or you may even be conducting freelance work as a journalist, photographer or tour guide, etc. You will find that most lenders / credit providers will require you to provide evidence that you have a regular income to sustain a loan.  This includes providing evidence that:

 ·       You are a business owner or partner;

·         You have been trading in your current business for at least 24 months;

·         Your business provides a steady income; and

·         You will be required to provide copies of:

ü  your most recent Personal and Business Income Tax Returns, plus

ü  One set of the business financial statements, reflecting two (2) years trading activity; and

Note: If you conduct freelance work with an employer, you may find that lenders / credit providers may require you to provide a copy of the written agreement between you and the employer that outlines your pay and conditions.

Type 5 - Sub-Contractors

Sub-contractors have specialized skills and they are generally employed by a primary contractor to provide specialized services in a variety of fields such as:

Building and Construction;

• Mining;
• Civil Engineering; and
• IT (Information Technology).

Note: Many sub-contractors have little to no overheads and no staff and most are typically self-employed. In a sense they are similar to PAYG contractors.

Type 6 - Other Forms of Income

If you receive any other form of income and you are unsure if they are acceptable to lenders / credit providers. You should seek help from a qualified and licensed finance broker or a mortgage broker and you should even seek financial and legal advice from your accountant and solicitor. These other forms of income can include:

• Centrelink payments;
• Commissions and Bonuses income;
• Trust Distributions income;
• Car Allowances;
• Annuity Income from Superannuation;
• Directors fees;
• Second Job income;
• Investment income (i.e. Dividends received from publicly listed companies); or
• Court Ordered Maintenance payments.

Seek Expert and Professional Advice

http://www.singhfinance.com.au is a reputed Australian finance brokerage firm that employs a team of expert and professionally qualified finance brokers. Who are willing to help and guide you through the loan process requirements, and if you require finance they will also obtain a pre-approved home loan or a car and truck loan for you. They will even help you find suitable insurance for your home or motor vehicle.  Call on 0424 190 908 today or visit their website and simply click on the "ENQUIRE ONLINE" form.