What loan for the company’s development
What loan for the company’s development
For the company to be able to grow efficiently, it needs cash. Most entrepreneurs then decide to use external financing, namely various loans and loans for business.
Each entrepreneur running his own business has a number of different financial needs. They also result from development plans, for example expansion of owned infrastructure or purchase of new equipment. Such investments allow for broadening the scope of services or production, reaching new customers, as well as increasing the company’s competitiveness on the market.
Development pays off
Continuous staying in one position on the market, without development plans, admittedly allows the company to profit, nevertheless most often they remain at the same level or decrease as a result of competition. Therefore, any future-oriented entrepreneur should also assume an investment in the development of his business.
Depending on the company’s industry, investment in development can take place in various ways. Some companies decide to buy new equipment, while others put emphasis on acquiring new competences by employees. From the point of view of the future of the company, it is important to determine what benefits can be achieved through specific investments.
Examples of investment areas in company development:
– expansion of the business with a new industry and offering new products and services
– using newer, more efficient and effective technologies
– conducting research projects and implementing innovations
– opening a company branch in a new city, region or abroad
– purchase of new, more modern equipment – machines and computers
– employment of new employees, opening of a new company’s department
– improving the qualifications of the company’s employees by investing in their trainings
– support for ecology – acquiring energy from alternative sources, reducing the burden on the natural environment by changing technological processes
– using professional services of advisory institutions
These are just examples of areas in which an enterprise can conduct development activities, because they vary depending on the industry.
Thanks to well thought-out development, the company can gain even more without risk. However, it is crucial to obtain appropriate funds for necessary expenses related to development. Where can the company get the money? How to choose the best option and reduce the danger associated with long-term investments?
Methods of obtaining money for the development of the company
Business development can be supported in a number of different ways. Entrepreneurs currently have various solutions at their disposal which allow them to acquire all or part of the required funds. Where can I get beneficial financing for the company?
Currently, there are several ways to raise money for the development of the company. They differ from each other in terms of formalities related to obtaining funds, conditions that must be met and the amount of financial support.
The entrepreneur can obtain money by:
– subsidies from the European Union
– co-financing from the Labor Office
– local programs addressed to the company, for example co-financing from the local government
– venture capital and private equity funds
– business angels
– bank and non-bank loans and credits
In the case of various subsidies, co-financing and programs, it is usually necessary to meet a number of different requirements, which is why not every entrepreneur will be able to obtain the necessary funds in this way. Venture capital and private equity funds as well as business angels also require the presentation of an idea for development that will be profitable in support.
The most easily available for entrepreneurs planning the development of the company are bank loans and non-bank loans that can be obtained even from the first day of running a business. Where can you get a good loan or a loan for the company’s development? Is it better to choose a bank or a non-bank loan company? Which requirements should be met then? How to choose the most favorable parameters of the offer? What happens if we do not pay the obligation on time?
Better company development thanks to loans and credits
A loan and a loan for business is the most convenient way to obtain additional funds for running a business. It can be obtained by a small sole proprietorship as well as by a larger company.
The main advantage of loans and credits is the fact that the conditions to be met in order to receive financing are not as excessive as in the case of subsidies or various programs that require much more from the company.
That is why most entrepreneurs now decide to obtain funds from loans and credits – this also applies to large players in the market, who need money for a number of purposes related to business development.
Loans and corporate loans are now available on favorable terms, also without high fees, and thus allow entrepreneurs to raise money on favorable terms. What’s more, funds can often be obtained at an express speed – even in one day.
All these advantages make loans and loans currently so willingly chosen by entrepreneurs who care about even more effective development of their company.
What an entrepreneur can spend money from a loan or company loan:
– starting a business
– training yourself and your employees
– purchase of a new property
– payment of overdue expenses
– acquisition of equipment for the company
– stocking – purchase of the goods needed
– use of various services, for example outsourcing
Loan or loan – what better for the company’s development?
Entrepreneur for the development of his company can take out either a company loan or a company loan. What exactly do these offers differ from each other?
Although the terms “credit” and “loan” are often used interchangeably, there are significant differences between them, which concern not only terminology.
First of all, loans are offered only by banks – they have the option, which is why non-bank loan institutions in practice can not grant loans. The loan is described in the provisions of the Banking Law and in these regulations we find detailed information about its specificity. They indicate, among others, that the loan is intentional, that is, it is contracted for some purpose indicated by the borrower. Also the loan must be confirmed in writing.
In turn, loans are regulated by the provisions of the Civil Code. According to them, everyone has the right to loan, both companies and individuals. Therefore, for a loan, we can go to a bank, to a non-banking loan company, but we can also get it from a person close to us or unknown. The loan does not have to be intentional, so we can get it for every purpose. Also in small amounts it does not have to be confirmed by contract. The regulations also indicate that the loan can be granted for free.
Therefore, in order to develop the business, the entrepreneur may incur both a company loan and a company loan. What will be the better choice?
When to choose a company loan?
We will get a company loan only at a bank and it will be a loan that requires indication of the purpose, for example the purchase of specific machines. We can not make money in a different way then.
To obtain a company loan for development, it is also necessary to meet precise, often excessive requirements, which is why new companies often can not get such support due to low creditworthiness. A development loan may also require security, for example a mortgage. It allows for obtaining higher sums than loans, even up to millions of zlotys.
Corporate loan – advantages and disadvantages:
– only at the bank
– for high sums and a longer repayment period
– on the target indicated above
– thoroughly tested creditworthiness
– security may be required
– often waiting long for a decision
When to choose a company loan?
On the other hand, company loans are more easily available and give entrepreneurs greater opportunities to dispose of their money. As mentioned earlier, for a loan for the development of the company, we can go to both the bank and non-bank loan companies, for example you can get it at bank.
A company loan gives the borrower the freedom to distribute the funds obtained, for example, a part may be spent on the purchase of equipment, another on employee training or to cover additional expenses. Loans are also easier to obtain – they do not require submission of a number of documentation and you do not have to wait long to receive a decision on granting funds. This makes them a good emergency exit when the company needs money immediately. Importantly, you can get such a loan even from the first day of your business.
On the other hand, it is worth remembering that loans, especially those without excessive requirements, do not allow you to raise large sums. Most often, it is about PLN 10,000 or a bit more if the company has a good credit rating. The repayment time is also generally shorter than in the case of loans – usually a few years. No additional security is required.
Corporate loan – advantages and disadvantages:
– for any purpose
– easy to get
– instant decision
– without a thorough examination of creditworthiness
– without protection
– lower amounts and shorter repayment period
In the bank or not?
When looking for a good loan offer or business development loan, you should also think about where to apply. We have at our disposal a number of universal banks, ie those that serve individual and business clients, as well as non-banking loan companies – some of them, including Aasa, provide loan services for business.
Currently, both banks and non-bank loan companies are able to offer companies favorable conditions as well as high security of the entire transaction. However, it’s worth remembering details. What should you pay special attention to?
Funds for the development of the company from the bank
In the bank, we will get both a company loan and a company loan. The choice of offers is therefore very wide, but we must meet a number of requirements to use them.
Funds for the development of the company from the bank can be obtained by both the entrepreneur who has been operating for years and the one who is just starting it. However, we must remember that the bank will have more demanding requirements from loan companies, which is why you can often meet with a refusal there.
We can go to the bank personally for a loan or a loan, but many institutions also allow you to submit an online application and receive funds via the Internet – this option is mainly available to regular customers.
Funds for the development of the company from the loan company
The second option, which is the use of non-bank loan companies, allows you to raise funds for easier conditions. It is worth pointing out, however, that it is a better choice when we do not demand large sums of money and we care about comfort and speed.
When an entrepreneur wants to take out a loan for the development of a company via the Internet, then also non-banking loan companies will be the best solution. At bank, you can apply online without leaving your office or home, which is also a great time saver.
You also do not have to worry about security issues – non-bank loan companies are also supervised, and you can also check their credibility at the Economic Information Bureaus, at the KNF (Financial Supervision Authority) website, as well as through the internet search engine – we find different opinions of company clients and we can find out if selected ones are trustworthy.
What conditions must be met to obtain a loan or a loan for the company’s development?
An entrepreneur who is interested in a loan or a loan for the development of a company should meet certain requirements. As mentioned before, a lot depends on whether you want to apply for a company loan for development or a loan, because these are other products.
Let us therefore focus on the basic conditions to be met in order to obtain a loan or credit for business development, and also point out those which often appear as additional requirements.
The basic conditions for obtaining funds for the development of the company:
business activity registered in Poland – at bank there is the possibility of submitting an application shortly after registering the activity
permanent address of residence in Poland
no negative entries in Economic Information Bureaus such as InfoMonitor, ERIF, KRD
These are therefore the basic conditions when we want to obtain a company loan, also intended for business development. In addition, there may also be additional requirements, which most often involve loans and credits for higher amounts.
Additional conditions for obtaining a loan or company loan:
positive creditworthiness – calculated on the basis of the presented company documentation (accounting and banking documents, collateral) as well as the creditworthiness of the customer
appropriate period of running a business – for example, half a year or one year
preparation of a business plan – it allows to determine whether the planned client’s undertaking has a chance of success
There may also be additional requirements and conditions, for example in the case of banks, it may be necessary to open a bank account or use an insurance offer. However, such conditions are not necessary to be met at bank, which means that obtaining a loan for the company’s development is even simpler.
How to choose the best loan or loan for the company’s development?
Before making a decision, we should first determine what amount will be needed. This determines further activities related to finding the right banking or non-bank offer.
With the required amount, it is also necessary to calculate the optimal debt repayment period – the longer it will be, the lower the repayment amount, so the installment will not be a big burden for the company’s budget. On the other hand, it should be remembered that a longer repayment period is connected with the necessity of incurring higher loan or credit costs, in particular those resulting from interest.
The online loan and loan calculators available in the network can help you find the best cost offer. You can find them on websites comparing offers and directly on the websites of banks and loan companies.
Some entrepreneurs also use the services of credit advisers – then you can count on professional support in analyzing various offers available on the market.
A lot of helpful advice and opinions are also available on online forums, in social media – you can then find out whether a bank or non-bank loan company is trustworthy and whether it is worth using their services.
What is the process of applying for funds for the development of the company?
The very procedure of obtaining a loan or a company loan for business development depends primarily on the selected offer and on the terms of a bank or loan company.
The simplest procedure for obtaining a loan concerns non-bank offers. In the case of bank, the process of applying for a loan is easy and quick because no registration, accounting or banking documents are required. You also do not need to present collateral or guarantees.
The steps of applying for the bank loan:
– select the appropriate amount and loan repayment period on the website
– fill in the loan form on the website
– change the selected verification procedure as a new customer
– the decision on granting the loan is transferred as soon as possible, within an hour by phone or by e-mail
– after confirming the willingness to obtain a loan and signing the contract, the money is transferred to the client
Thus, the procedure for obtaining an on-line loan is maximally simplified and allows the customer to quickly access the necessary funds. After paying the loan, the client also receives a schedule according to which he is to pay the installments.
What are the consequences of not paying the loan or company loan?
If the entrepreneur decides to take a loan or a company loan for the development of his business or for other purposes, he should also systematically pay the liability. In the event of delays in repayment or failure to repay, it may expose itself to unpleasant consequences.
Lack of repayment of a loan or loan for a company results primarily in the calculation of additional fees – interest for late payment and often high fines and reminders that remind you of the need to repay the debt. If the client still does not want to settle the obligation, then the case may be transferred to debt collection. The debt collector will then continue to persuade him to repay – he can do it by mail, by phone, e-mail or in person.
Lack of repayment of the obligation also results in entering into the lists of debtors of the Economic Information Bureaus and the Credit Information Bureau. Negative information about non-repayment of a loan or loan results in problems with incurring further obligations and even less trust of contractors and clients, which may affect the company’s financial situation.
The final consequence of the failure to repay the loan or loan to the company is the bailiff’s execution, which is carried out after the creditor has won during the trial. The bailiff has the right to seize funds from the company’s account, to seize and auction its movable and immovable property.
Even a new company can get a loan to develop its business. It is possible both in banks and in non-bank loan companies like bank, where additional funds can be obtained after submitting the online application.
Thanks to gaining additional money for development, the entrepreneur can purchase the equipment he needs, can hire and train new employees, expand the scope of his activity. In this way, it can gain a greater competitive advantage in its industry to earn even more – without waiting for the savings needed to grow.
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