Self-employed payed in cache

[miloslj]

Hy, I work as "self-employed contractor" for one small business store. As payment I receive cache.I deposit that cache in my personal account, and on the end of the year I report my income to CRA. But I came onto a problem with bank when I try to get line of credit. One of bad things was that that I do not have any business income. One more thing I have only one notice of assessment. Will everything be OK when I get second notice, or I have to open business account and give checks to myself?

Thanks
Milos

 

[NetMecca]

Getting a line of credit is considered based on several factors including your ability to repay the loan, your credit rating, your assets and liability ratios. Each bank have their own rules for approving those. I would suggest you talk to your bank and ask them to provide you with clear guidelines as to their requirements. That will help you answer this question better.

As for the business, might be a good idea to start by getting a business number in your local province (as sole proprietor). It will add some legitimacy to your business and how the banks view it. If you start operating like a business maybe they will treat you a little different.