According to the study “Micro, small and medium-sized enterprises with financial services”, companies from the SME sector still use their own funds to run business the most – as much as 89 percent. the respondents answered that they prefer the method of financing the enterprise . However, this is not always possible, especially if the entrepreneur is planning larger investments. The results of the survey show that loans for such companies are most often used for such purposes. Currently 44% of the investment loan is used. medium and about 1/3 micro and small enterprises. In order to take advantage of this method of financing, however, a number of requirements imposed by banks must be met, some may significantly limit the possibility of taking a loan .
Loss at the end of last year may miss the chances of a loan
One of the documents required by the banks to calculate the entrepreneur’s creditworthiness is his PIT for the previous year. If there is a loss in the income of more than 5% on the income, you should count on the refusal to grant the loan. For banks, financing such an enterprise is risky.
– However, it should be remembered that such a loss is not always caused by the bad condition of the enterprise and the investments made by it. If the entrepreneur explains that the loss has caused purchases for the development of the company, he still has a chance of a positive consideration of the application. Each case is considered individually, but it is good to know what policies are generally adopted by specific banks or use the knowledge of a financial consultant, who will tell you in which bank we have a chance for a loan – says Paweł Mazur from ANG Biznes.
It’s better not to suspend your business
Momentary troubles of the company often induce entrepreneurs to suspend their activities. Thanks to this, they do not have to pay social insurance contributions and may wait out an unfavorable period. This is done mainly by companies that deal with seasonal activities, which, apart from a few months of the year, do not record higher revenues. Unfortunately, it turns out that the suspension of the company’s activity in less than 12 months before submitting the application may disqualify the entrepreneur in the credit process. Banks treat start-up as a new start date for its operation on the market. Therefore, an internship shorter than 12 months is considered by them not too short for the correct calculation of the company’s creditworthiness.
Arrears in ZUS and the US are not welcomed at the bank
Entrepreneurs must take into account the fact that during the credit verification their reliability in paying social security contributions to ZUS and the Tax Office will also be checked. If for some reason the loan seeker is in arrears with payments, then in order to receive the loan he must repay them as soon as possible or get along with the institutions so that they agree to spread the payment into installments. Otherwise, the bank may issue a negative decision, especially if the entrepreneur is seeking a higher loan amount .
Some industries are uphill
It may turn out that an entrepreneur seeking a loan will get refused at the very beginning of the process. Some industries are not supported by banks at all, eg gambling, weapons or financial, and some are very carefully verified by them.
– These include, among others, the construction and transport industries – adds Paweł Mazur. – Many banks approach farmers very critically, especially those who run special departments of agricultural production. It may turn out that what we will enter as the main activity during the company registration process will affect later efforts to finance the bank. Therefore, by choosing PKD codes, let’s check how banks approach the given industry in order not to cross their credit chances at the beginning.
Entrepreneurs on a global basis have less chance of a loan
One of the basic factors affecting the creditworthiness of an enterprise is its method of accounting with tax authorities . It turns out that the worst treated by banks is the lump sum method. This is because in the case of a lump sum tax is paid on income. The basis for calculating the creditworthiness of the banks is the company’s income. Banks therefore estimate the company’s income as 20 – 25 percent. income, which means that to get a loan, the entrepreneur must have a very high income. Otherwise, there is no chance of financing. Some banks, due to difficulties in calculating their income, immediately delete such a company in the process of applying for a loan.