Loans for temporary workers:
What is it? Before indicating the forms of credit for temporary agency workers, it is imperative to briefly describe what we are talking about, that is what temporary agency is. The word has clear Latin roots, i.e. interim, which means provisional. In the lexicon, temporary agency work is called “labor leasing”, hence rented work. This is a trilateral employment contract involving 3 subjects: the worker, the employer and a third party who acts as a mediator, that is, a temporary agency, which brings together job supply and demand.
The scheme is as follows: I find a job for a worker at an employer and in exchange for this service (mediation) I receive a percentage from both the worker and the employer. This is temporary work! Let’s see now the type of financing for temporary workers.
Loans for temporary workers: what are they? All the various types of financing for temporary workers can be divided into 2 groups: 1) the ebitemp loan ; 2) personal loans for temporary workers, which are offered by the credit market (banks and finance companies). We will deal with them separately, indicating the pros, cons and limitations of both.
Ebitemp financing: This is the national bilateral agency for temporary work, which provides a series of benefits for all people who have a fixed-term job, therefore not only for loans for temporary workers. The forms of financing provided to temporary workers have the following characteristics: they are at zero rate as well as free of various expenses for the instruction of the practice. these are the pros. But the ebitemp loan has drawbacks or limits: no more than 5000 USD can be requested which, on the other hand, disburse only under certain conditions (having paid off a previous loan with an ebitemp of at least 1000 USD). In addition, the repayment period cannot exceed 42 months (3 and a half years), starting from the expiry of the temporary contract. This is the summary of the ebitemp financing. Let’s move on.
Loans for temporary workers beyond the ebitemp limit:
As we explained above, the ebitemp loan has a quantitative limit of 5 thousand USD, unsurpassed. For sure, many temporary workers will do well, so that we indicate to them the related ebitemp loan form directly downloadable on ebitemp loans application form.
Question: what to do if you need financing beyond the aforementioned 5000 thousand USD threshold? We have already anticipated the answer: we must turn to traditional banks or finance companies. But even the latter have their limits: the general one of the repayment period which concerns not only temporary work but all precariousness!
They do not finance beyond the expiry of the contract
In practice, they do not finance beyond the expiry of the contract for fear that after expiry of this, it will not be renewed and therefore the installments will not continue to be paid. Consequences: the interim loan will have a repayment period directly related to that of your contract. If, for example, the contract is annual, the loan will be repaid in one year, if it is biennial, in two years, etc. etc. How to remedy such a situation?
Loan for temporary workers: how to remedy short repayment times? That is, how to extend the repayment time and get over 5 thousand USD? So, let’s indicate some systems, from the simplest to the less orthodox ones. A first hypothesis is that of being guaranteed by a third guarantor. The always denote, although for the most is obvious.
In the second place, and when it is missing the guarantor, where possible, the request by the temporary worker can be enhanced by registering mortgage on immovable own or others which guarantees the whole operation. The presence of mortgages also allows some financial companies to proceed through the foreign exchange credit. We close the discussion with a series of institutions that deal with this financing even if you are temporary workers: loans with bills and those who pay them in 2020