There are a lot of instances in life where you will need to provide proof of income to another entity.
You might be applying for a loan, trying to buy a home, or leasing a brand new automobile. These money lenders will need to see how much money you’re bringing in so that they can decide how big of a risk you are to take on.
In these instances, is a bank statement proof of income? You might work somewhere that doesn’t provide pay stubs, which can make providing proof of your work difficult. Read on, and we’ll walk you through what you need to know.
Is a Bank Statement Proof Of Income?
The short answer is both yes and no.
Bank statements are used all the time in transactions requiring some sort of proof of income. They do have, of course, all of your financial information. This will include evidence of the weekly or bi-weekly deposits you’re receiving from your employer.
In fact, we could go as far as to say that providing a bank statement might even be a necessary part of proving your income. There are many landlords, for example, that require one’s last two bank statements if someone is looking to rent an apartment.
However, a bank statement alone might not be enough to appease the moneylender or person in power you are speaking to. The fact of the matter is that bank statements are easy to forge. There is also no way for the person to ensure that the deposits on your bank statement are actually from an employer or not.
In most cases, a money lender will still want to see some other form of evidence of your income and employment. Your bank statement can serve as great supporting evidence, but there are some instances where it won’t be enough.
Other Documents You Might Need
If a bank statement isn’t enough, what else might you need to have on hand? The most common requested document would be a pay stub, or rather two of your most recent.
A pay stub shows your employer’s full name, your full name, and all the details of your payments. It will show what you’ve made for this pay period, but also what you’ve made the whole year to date. It might even have information on your annual salary if you are paid on a salary basis.
This is a lot more information for a money lender to work with. Having a pay stub in hand is likely to make them feel more secure. If your work doesn’t have pay stubs, you can suggest they start using a service like PayStubCreator.
Proof of income can be so important, and it’s essential your business has some way to help you in this regard.
Proving Your Income
Is a bank statement proof of income?
If you’ve wondered this in the past, you should now have your answer. Need more business advice, tips, or tricks? Check out our blog for more information.