Earnings abroad and a loan in a Polish company – is it possible?
With the opening of borders related to Poland’s accession to the European Union and subsequent accession to the Schengen Agreement, based on the free flow of goods, persons and services, more and more Poles have found employment abroad. It is not always a permanent emigration, but often also periodic paid work trips. Especially the second option is for many countrymen the only source of income. Regardless of the amount of earnings they receive, they may sometimes need a payday loan or installment loan, and may not always receive it in the country where they work. Therefore, can they use the services of a company operating in Poland?
Earnings abroad and credit or loan
People who earn income abroad have little chance that any financial institution will lend them money. In this case, both banks and loan companies speak in unison. There are several understandable reasons for refusing funding, but they all come down to one conclusion: the lack of credibility of such a borrower or borrower. The most common are:
- Inability to verify the borrower in the BIK database and Economic Information Bureaus. Of course, all loan institutions will check the applicant in the above registers and databases of debtors, but the only thing they may encounter there is the credit history from the years preceding emigration. Obligations or installment purchases were built on the basis of a foreign system, and therefore unreliable in the eyes of Polish lenders.
- No permanent address in Poland, and hence no registration. This is one of the basic conditions for obtaining a loan or a loan. This requirement results from the fact that financial liabilities should be incurred and repaid at the place of tax residence, i.e. in fact where the address of residence is located or in the place where the Tax Office competent for the taxpayer is located.
- Bank account in a foreign bank. It is natural that most economic emigrants receive remuneration on the bank account having a branch in the country where they work. This also applies to those who engage in foreign temporary work. While for the bank this does not have to be an obstacle and if those applying for a loan have their registered address in Poland and present official confirmation of employment and the amount of income received, in loan companies this is an insurmountable obstacle. Not only will this mean that you cannot confirm your creditworthiness, but also that you will not verify your identity. The latter procedure applies only to Polish banks (i.e. having their registered office in Poland, not necessarily having Polish capital).
- A considerable risk of loan or credit defaults. Not having a Polish address and a Polish bank account is also a risk that the lender will not pay back the loan, and in the event of his stay abroad, both debt collection and court debt enforcement may be difficult. Private equity loan companies are especially reluctant to take this risk.
The Polish Financial Supervision Authority, by means of recommendation S, opens a gate for people working abroad and allows them to take out a loan in Poland, but in the currency in which they earn. Poles who are still connected with their home country and e.g. are planning to build a house here, can take a foreign currency loan. However, the availability of such loans may be a limitation, as they are not granted in all currencies. First of all, the euro, US dollar and Swiss franc will be awarded.
Not all loan companies will refuse a loan
Although most companies actually make the granting of a loan conditional on living and earning in Poland, there are also those who can grant the application of those who earn abroad. However, for this situation to occur, the following conditions must be met:
- Polish citizenship
- registered address in Poland
- positive credit history in Polish credit and business registers
- remuneration for work flowing into the Polish account
This solution will therefore be available mainly to those who practice foreign periodic emigration, but are legally and institutionally connected with the Polish administration and are not listed in the registration bases of foreign units.
BetCredit – loan offer for working abroad
The above attitude is demonstrated by the Latvian company BetCredit, also operating in Poland. Having a Polish bank account and transferring earnings is not necessary for BetCredit to be able to confirm the identity and creditworthiness of such a borrower – it does not matter if the foreign entity can be the employer. If the applicant fulfills these conditions, he can apply for a loan and, given the usually higher creditworthiness resulting from working abroad, count on a positive decision.
BetCredit’s offer focuses on payday loans with a repayment period not exceeding 30 days. The first time you can borrow 3,000 USD, and each subsequent – 5,000. It is also worth noting that BetCredit allows the possibility of extending the repayment period of the loan up to two times, which is now rare. In addition, it is an attractive price offer and comparable in quality to other leading brands. It is worth taking advantage of this offer, not only if you receive income abroad.