It’s rather hard for young entrepreneurs to save so much, so a loan is usually at stake. If you can get it from a trusted person, at a low percentage, or if you find funds and grants, that’s great. Usually, however, the entrepreneur has to cope alone and then go to the bank for a company loan.
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According to data from the Central Statistical Office, almost every third new company terminates its operations before one year has passed. So young companies are doing everything in their power to stay on the merciless market among large enterprises. To this end, they most often need the amount of money that will allow them to invest well in business and develop.
Due to the statistics mentioned above, there is a high risk that the company will collapse quickly and will not be able to pay. Despite this, however, financial institutions are aware of the fact that they often remain the “last resort” for young companies, so they decide to help them with a great deal of caution. Loan amounts for companies with small experience are definitely lower than those that could be obtained by long-standing companies that remain on the market.
According to research (updated in 2014) carried out by Tax Care, 10 banks are emerging among various banks that offer loans to young companies, of which 7 are targeting their products to companies without internships. The amounts of such loans range between PLN 1000 and PLN 350,000, so the differences are considerable, however, most often banks propose amounts in the order of PLN 10-50 thousand. This is money that can help the company grow and is still not too risky for the bank.
Banks that offer high credit for a fledgling and uncertain company?
Of course, but they do everything to minimize these risks. It is not worth deluding themselves that they will give us a loan of 350,000 zlotys right away. Usually such a high loan must be well secured, e.g. by pledging the property. The interest rate is also high here and decreases as the loan period increases.
Banks often require from the entrepreneur own contribution and a good credit history and in uncertain cases it is best to decide on co-crediting or guarantee. Loan offers for companies with small experience are often individual, so they cannot be compared.
The longer the company operates on the market, the higher the loan amount it can count on
The number of offers and banks that would like to grant such a loan is also increasing. This is associated with reduced risk, because since the company has been on the market for some time, it has a chance for development and will probably be able to repay the commitment.
It is this certainty that is missing from completely new companies
That can go bankrupt at any time. Taking high loans in this case is not only the recklessness of the banks that have agreed to it, but also the entrepreneur who, due to problems with repayment, may fall into serious financial trouble.
In order not to risk so much, it is worth looking at business realistically and not assuming its prosperity in advance (or total failure). You need to take into account the possible risk and keep it in mind when making credit commitments, while working best to develop your business and invest in your ideas.