Credit despite short – time work.
Since the outbreak of the current financial crisis in 2008, the federal government has repeatedly been forced to allow short-time work to prevent layoffs. Other European countries, such as Switzerland, also rely on this measure. In principle, this measure is advantageous for everyone involved, but it is difficult to get a loan despite short-time work because banks often lack the right amount of trust.
What is short-time work?
If there are situations in which difficult layoffs appear to be inevitable, then the Federal Government can allow short-time work and thus release certain funds from unemployment insurance. In return, the employees may reduce the working hours of the employees and reduce their salaries. They receive compensation for the released unemployment insurance money, which is also known as short-time allowance for this reason.
The problem with a loan despite short-time work
However, there are two problems that make a loan so difficult despite short-time work. On the one hand, the short-time work allowance expires after a certain time (usually one year) and the creditworthiness of the employee is therefore permanently impaired. On the other hand, short-time workers are potential candidates for job-related layoffs because the company obviously lacks the money to continue paying them their full wages. The banks therefore lack confidence that the economic situation of short-time workers will stabilize again and that they will have the necessary means to repay the loan.
The solution of the problem
However, you can still get a loan in spite of short-time work in different ways: The official announcement is ideal that short-time work ends at a certain date and normal operation is resumed. Alternatively, there is the option of working with a guarantee: A person from the immediate vicinity who is in a secure employment relationship can vouch for the loan through an official declaration and thus solve the trust problem of the bank, which is usually ready to grant a loan is.