The loan is one of the most popular, external methods of financing Polish enterprises. The Association of Polish Banks, based on the study “Micro, small and medium enterprises with financial services”, states that over half of medium-sized companies and two-fifths of micro and small enterprises currently use bank loans. After the end of 2017, it was estimated that the total amount of loans granted to entrepreneurs by Polish banks is over PLN 366 billion. However, is it easy to get a loan for a company? What requirements should be met? And what does applying for a loan look like?

Creditworthiness of Enterprises

The mistaken belief is that a bank’s positive credit decision is based only on the lack of quotations of major losses in the company. When considering loan applications from companies, banks check a number of other, decisive factors. PaweĊ‚ Mazur from ANG Biznes, explaining the conditions to be met, first lists the entrepreneur’s PIT for the previous year. The loss shown in it greater than 5% is disqualifying and the banks treat it as a risk. The companies that have suspended their business have a low chance of getting a loan. As the start date, the date of resumption of activity is taken into account, and an internship shorter than 12 months is considered too short for the correct calculation of creditworthiness.

The way of settling accounts with the tax authorities is also of great importance when applying for a loan for the company. The least desirable for banks is the lump sum method, because there are the greatest difficulties in calculating income. Credit applications from such companies can be rejected immediately. What is also important is the type of business – for example: banks are reluctant to provide loans to the construction and transport industries. Difficulties may also be caused by arrears in ZUS and the Tax Office. An entrepreneur applying for a loan should pay back the arrears as soon as possible or apply for payment in installments in appropriate institutions. However, if this does not happen, the bank may issue a negative credit decision, especially if a high loan amount is involved.

A Limited Liability company and the Creditworthiness of Shareholders

A Limited Liability company and the Creditworthiness of Sshareholders

The process of applying for a loan for a limited liability company looks a bit different. First of all, before submitting the application, it is necessary to obtain the consent of the Supervisory Board of the Company. However, this applies to amounts that exceed the amount of half of the share capital. At lower amounts, the decision of the chairman of the board is sufficient. A difficulty in the credit process may be granting loans to the company by shareholders and the emerging requirement of a promissory note guarantee. It should also be remembered that when examining the company’s creditworthiness, not only the company’s ability but also its shareholders are checked.

Another case is a limited partnership, in which another company is a shareholder. The problem here is the difficult possibility of reaching the actual beneficiary, especially when the company has many shareholders. A limited partnership company with a limited liability company differs from the fact that the limited partners share responsibility for financial liabilities with their own assets.

The formalities with which the loan for the company is associated and the loan for the company may seem very complicated. However, after proper preparation and drawing the necessary information and reliable presentation of creditworthiness, most companies have a chance to obtain external financing.