They are very fond of the KATA form of taxation, but it is not as easy to borrow with it as with an employee. Banks have very different views on how much they rely on the creditworthiness of sole proprietors.
It is considered to be less secure revenue
For borrowing, small businesses paying a monthly fee of $ 50,000 will need to be presented with a certificate from the NAV rather than an income certificate from their employer. The problem is that this certificate only accounts for up to 60 percent of the invoiced revenue. It is worth exploring the possibilities.
This income, on which NAV issues paper, is decisive in determining the amount the credit institution considers to be a loan amount. The bank’s decision is based on maximizing the repayment installment based on our monthly legal and ongoing earnings. And the repayment amount will be even stricter for home loans than last year .
So, if someone shows a net income of 400,000 forints as an employee, he or she can claim much more than someone who bills for $ 400,000 as an entrepreneur – no matter how much revenue he or she shows up.
One bank that way, the other bank so
There are three ways in which financial institutions handle this NAV-verifiable income, which is 60 percent (or almost half) of the account value.
- The (annual) amount in the NAV income statement is divided by 12 and is treated as net income.
- The amount in the NAV certificate is still deducted from the tax return KATA tax (HUF 25, 50 or 75 thousand per month) and then divided by 12.
- After deducting the KATA tax, the amount is reduced according to a formula determined by the bank.
Of course, the best thing to do for a loan applicant is how much you can get if you go to a company that doesn’t charge tax or additional formulas. Therefore, it is advisable to carefully examine the offers of financial institutions and, if necessary, not apply for a loan from our account-keeping bank.