What Is An Income Confirmation Letter?
An income confirmation letter is written by an accountant confirming earnings/income of:
- a director of a company who is also the shareholder of the same company
- self employed, sole proprietors, partners in a partnership or
- member(s) of a close corporation.
The purpose of the letter is to provide an independent confirmation of the above-mentioned earnings. Normally the accountant will identify and add up all the drawings made by the owner(s)/member(s) from the company for the private use. The accountant will then determine, the monthly average of the drawings over the period. The periods maybe over 12 months, 6 months or 3 months. It all depends on the purpose the letter is needed for.
The income confirmation letter is also known as:
- Income verification letter
- Proof of income
- Income letter
- Earnings confirmation letter
- Drawings confirmation letter
What Is It Used For?
The letter maybe used as supporting evidence for:
- Signing leases: If one is trying to lease a home, apartment or car, the lease issuers may want proof of income to confirm if one can pay the monthly rentals.
- Obtaining a credit card: Sometimes, the one may need the letter to get a credit card that verifies that they can pay back debt if needed.
- Getting a loan approved: If the someone requests a loan from a bank, they may require an income confirmation letter to confirm that they’re able to pay it back with their earnings.
- Purchasing a home: Someone may apply for a mortgage, to purchase a home and pay the house off incrementally, which they may require an income letter to prove they can make these payments.
What Information Is Required To Prepare The Letter?
We require the following information:
- Bank statements for the business and personal (the months required depends on the period that need to be confirmed)
- Your name & surname
- Your ID or Passport number
- The name of your business and the nature of your business
- Address & company registration number
What To Do Next?
- You can complete our online form and we will call you.
- You can book an appointment to engage further.
