The Best Business Loans in Poland

Compare the best options on the market and choose the one which best adapts to your day to day needs.

Further Below: Our Guide To Business Loans in Poland, Everything you need to know.

1. Alior Bank

• Excellent loan conditions for both new and old borrowers
• Loans of between 500 and 80,000 PLN
• Competitive interest rates of 5.12% p.a
• Favorable repayment periods of between 3 months and 120 months
• Fixed interest rates for long-term loans
• Has few additional costs
• Provides loans for a variety of purposes
• Available to applicants with enough income

2. BNP Paribas SA

• Affordable interest rates of 6.5% p.a
• Flexible loan limits of up to 70,000 PLN
• Excellent loan conditions
• Available for all purposes
• Provides financing under less strict requirements
• Excludes insurance charges
• Loan size grows with timely repayments
• Friendly repayments of up to 7 years

3. PKO BP

• Get a loan of up to 50,000 PLN
• Provides loans to creditworthy clients
• Attractive interest rates of 6.8% p.a
• Available for a variety of purposes
• Has fewer eligibility criteria than other top banks
• Friendly repayment terms of up to 7 years
• Has few commissions

Business Loans in Poland, All You Need To Know:

Be in the loop of everything about business loans in Poland, including factors that affect them and how to hire an offer that you’re most comfortable with. We explain to you the different platforms that provide business credits so you can find one that best suits you. 

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[UPDATE] What economic measures has the Government implemented for companies through covid-19?

Right at the onset of the Covid-19 pandemic, the Polish government stepped in with measures that would help cushion companies and businesses from the crisis. AS early as March 2020, the government announced its measures on tax and adopted some measures relating to the Anti-Crisis Shield. 

Below are the measures taken by the government to shield businesses and companies through the pandemic:

• The Minister of Finance deferred taxation on retail sales to December 2020. 
• The president signed a package of legislative laws regarding the Anti-Crisis Shield after it was approved by the Polish Sejm. The government introduced the Financial Shield (an Anti-Crisis program) which was signed by the president and approved by the European Commission. 
• The government implemented the Act of subsidization of loan interests granted to companies directly affected by the pandemic. 
• The government introduced a Recovery Plan to help businesses and the economy recover from the pandemic. It also initiated a program aimed at rescuing companies that were hard hit by the pandemic. The program would help companies and entrepreneurs to restructure their operations. 
• The president the Anti-Crisis shield for tourism, in particular, as it is a sector that was incapacitated by the pandemic.

• The government rose to the occasion and placed price margins (for basic commodities) within which companies were required to operate. 
• More than PLN 0.5 billion from the State Treasury was set aside to reduce interest rates for business loans in Poland. As the country made its first steps from the pandemic, many companies needed business credits to recover the financial liquidity that was lost during the pandemic. 
• A total of PLN 565 million was channeled to interest subsidies which were projected to generate a total of PLN 32 billion in credits. 

• Entrepreneurs whose operations were faltered by the pandemic would receive loans from banks on low interests. The Bank Gospodarstwa Krajowego (BGK) would subsidize the interests. 
• Such credits were only provided by banks that entered into an agreement with BGK. Besides entrepreneurs, companies undertaking primary agricultural production would benefit from the subsidies as well as businesses regardless of their scale of operation. 

Distinguishing types of company profiles

There are different categories of business loans in Poland, each designed for specific purposes. The type of financing your business qualifies for depends on a few such factors as its profile which determines its solvency. Each business differs from another in its characteristics. Below are the different forms of businesses available in Poland:

Companies

1. Entrepreneurs: this is a type of business that’s yet to exist. The entrepreneur takes time to evaluate an area and identify a gap in the market that he can fill. He then goes ahead to plan for the business, bearing in mind the risks and the profits.
2. Start-ups: this is one step ahead of entrepreneurs. The business already exists and is in its initial stages. The business is characterized by many losses, fewer sales, and unstable operations. Hence, they get loans that help them grow their way up to stability.
3. Consolidated companies: these are businesses with solvency and have gained some stability in their operations. Due to their long-standing nature of operations, these businesses have gained some ground and now earn more profits than losses. They qualify for somewhat big loans.
4. Large companies: these are businesses with a big market reach. They sell both nationally and internationally and have a turnover of millions of Euros. They are companies like BNP Paribas SA, PKO BP, etc.

Self-employed

• As legal entities: these are professionals who own a business and are looking for financing. The type of loan they qualify for depends on their level of income. They qualify for a loan adapted for a single person.

• As natural persons: these are people who are working but not as employees. Their income informs the amount of money they qualify for. In this case, they get personal loans that finance their projects.

Characteristics of business loans

A business loan is designed to bail us out of financial contingencies and help and improve the business. However, it takes a good understanding of the components of such a loan. To get financing, the type of loan, our company profile, and our negotiation power are among the major determinants that come into play.

What makes a good business loan?

• Cost. This is the first thing you want to look for whenever you’re seeking financing for your business. You want a cheap loan that allows you to improve your financial situation and makes the repayment process seamless. Loans in Poland are ECB harmonized, hence, loans are not overly expensive. 
• Amount. This is determined by the profile of the company and its solvency to repay it. Hence, you want to select an amount that suits your business’s growth prospects.
• Purpose. You might be looking for financial liquidity, expanding your business, working capital, making further investments, importing raw materials, or paying your suppliers.
• Linkage. Especially in banks, financing always comes with related products such as insurance, business accounts, or other products of mandatory recruitment.
• Term. This is determined by the nature of the loan you’re taking out. A big loan will have a longer repayment time than a small one.
• Grace period. This refers to a period (in the loan’s initial stages) where the borrower goes without repaying the loan without attracting any penalties. This period is most beneficial when we expect that the money from the financing will bring us benefits at a certain time.
• Guarantee. This comes in when the lender requires “payment insurance” with a guarantee or collateral, based on our company profile and the size of the loan we are taking out.
• Speed. This refers to the time the entity takes before releasing the funds to our accounts. While some take a few days, other entities may take weeks or months.
• Repayment. This refers to the method through which we are required to repay the loan. You might be required to make monthly installments or repay the whole amount at the end of the loan term.

Where to get business loans

As the financial systems in Poland evolve, technologies come up with products that are tailored to improve the borrowing experience. Below are the available lenders in Poland whom we can turn to in case of any kind of financial need:

1. Banks: They reserve a lion’s share in the lending market. They are known for offering big loans to companies with a high level of solvency. However, they have recently introduced financial options for SMEs.
2. Companies and private capital lenders: these are the second best lending platforms in Poland. They process their financing through online platforms, which makes them faster and more preferable to banks. Their products compete with those of banks, often surpassing them.
3. Alternative financing platforms for crowdlending: these are online platforms through which a borrower and a private investor get to meet. The investor gets to visit our company profile and decides on whether to invest in our business or not. The processing of these loans takes a short time and by the second day after application, you’ll know whether you qualify for the loan or not.

Your reason for going for one lender over another is influenced by many factors. You, therefore, want to make a serious financial audit before committing to an offer.

Business loan conditions

The following are the most common conditions that every business looking for financing in Poland has to meet. 

• National registration: giving loans is accompanied by many risks. A lender will avoid the risk of lending to a business without national registration since it may be hard to follow up on repayment. Moreover, regulations governing loans may not apply to such a business.
• Annual income: the lender will need to assess your financial records before giving out the funds. This is important as it shows your financial abilities and your company’s solvency. The lender may require financial records of previous years too.
• The seniority of the company: the stability of your company greatly determines the type or size of the loan you get. Hence, an entity will want to know for how long your company has been running. Ensure that your company is at least 12 months old.
• Not appearing on BIK: your company needs to have a positive credit history to qualify for any financing. Lenders will reject your application if you appear on BIK’s companies defaults list.

Please note that these conditions may be a little different for some entities. Some entities may provide financing to companies with a negative credit score, for instance.

Documents needed to get funding

To prove that you qualify for a certain credit, the company will require several supporting documents. Below are some of the most common documents:

• VAT return from the previous year and the current year.
• Income tax return.
• Bank statement (if in another bank).
• An updated balance sheet of the company’s turnover.
• Proof of payment of Corporate Tax.

Likewise, entities’ requirements tend to vary at this stage. Moreover, the entity may ask you to send the documents via email, through an online platform, or through a courier among others.

Other forms of financing for companies

1. Business credit lines

These are alternative sources of financing whose operations are different from loans. In this case, the lender gives us an amount of money that we can tap out as the need arises. Instead of returning the whole amount we took out, we only repay the amount we’ve withdrawn so far. 

This acts as a reserve fund when we need financing and do not have working capital.

2. Factoring

This is designed for SMEs or the self-employed who are looking to clear debts with their supplier(s). The entity sends the money to the supplier directly which we will repay later either in monthly installments or any other method.

3. P2B or crowdlending loans

This is an online platform through which investors get to see our company’s needs and decide on whether or not to invest in it. We might qualify for big loans depending on our project, company profile, and the platform we go to.

4. Confirming

As opposed to factoring, this applies to suppliers who wish to collect orders before delivering them to maintain their financial liquidity. The loan acts like an advance and is reimbursed after we collect the orders.

5. Loans with mortgage guarantee

These are credits that offer financing if only we can present property to act as a guarantee. The processing of these loans may take longer than the previous options because the entity will take time to determine the amount of money it grants us owing to the appraisal value of the property acting as a guarantee.

Products to invest in our company

1. Equity crowdfunding

These are online platforms taking the lending market by storm. They connect a business owner looking for financing with a private investor or professional. However, it’s important to note that the investor will get a share of the company and the profits in return.

2. Business Angels

These are companies that focus on financing big business projects. Unlike equity crowdfunding, the business angels managers decide on which business they will invest in. However, note that the investors will become part of our company.

3. 3F (Friends, Family, Fools)

Under this category, business owners get financing from friends, family, or fools. While the conditions of these loans are not regulated by the government, they are agreed upon by both parties and required to be adhered to.

Aid for the financing of companies

1. Capitalization of unemployment

This is only viable to business owners without employment. Such a borrower, seeking financing, will marshal up all the employment benefits they are entitled to.

2. Crowdfunding

Through these platforms, company or business owners can get financing from sponsors who wish to invest in their projects. These platforms allow the borrower to publish their projects where the sponsors will identify one that they are interested in. 

About this page, our methodology

What this page is for: we are here to help you get the best financial product that addresses your needs. Hence, we walk you through all it takes to get the current best offer, explain terms, how to compare offers, and how to assess your financial situation viz-a-viz these loans; the whole nine yards.

Source: The information regarding the best loans, their main characteristics, and their regulation have been drawn from the Polish Law on consumer credits, and the Loan Market Association.

Methodology: The data relating to the conditions of these products (amount, term, interest, etc.) have been obtained through online research and consultation of the official statistics of the aforementioned reference sources.

About FUNDGECKO: we are an online comparator website that offers assistance in personal finance and home economics. Besides comparing the different loan options, you get rich information on how to identify the best option that perfectly fits your situation.Note: the services we offer are totally free for the user, as FUNDGECKO obtains its income from advertising and its featured products.