The mandate contract is characterized by lower income stability and lower pay than the employment contract. For this reason, banks are reluctant to cooperate in granting loans to clients with this type of agreement. Loan companies, on the other hand, provide financial support to such people much more often.
Contract of mandate – short description
Recently, the number of employees performing tasks under the mandate contract has increased significantly. This type of work is based on a civil law contract, and therefore operates under the principles of the Civil Code (in Article 734-751), not the Labor Code. It is based on the client’s obligation to perform an established legal act (work) ordered by the entity (employer). This type of contract is characterized by relatively large freedom in organizing working time by employees. It is usually most beneficial for the employer. Mainly because the mandate contract has no specific arrangements for monthly salary and holidays.
Banks are reluctant to cooperate with the client on this type of contract. However, other loan institutions (such as Smart Loans) come to the rescue with whom it is much easier to agree on providing financial support. An example of a mandate contract is outsourcing work, ie tasks that an external company is involved in performing. The undoubted advantage of the mandate contract is the freedom to sign and terminate cooperation, which is not determined by the notice period, unless the contract stipulates otherwise. When the student is a student, he does not pay ZUS contributions.
Possibility of obtaining a loan with the mandate contract
People with a mandate contract often wonder if they are entitled to a loan. . The problem is most often income continuity, which is not so reliable and stable. However, this form of contract can be beneficial to both the employee and the employer. Often, the contractor may receive a higher salary than under a contract of employment, and the contractor does not have to pay many contributions. The banks mentioned above have a list of guidelines that must be met to obtain a loan, among others, a certificate of confirmation of cooperation with the payer over the next year is often required.
A document indicating the level of earnings over the last twelve months is also required. On the other hand, other loan institutions recognize the client’s responsibility. If he thinks he can pay off a quick short-term loan, the amount is most often given to him. It happens because many freelancers have a problem with getting a loan, and meanwhile their income often exceeds the salary on the employment contract.