Loans for New Activities – Business Loan

Young companies should have a chance to develop. Often, young entrepreneurs do not have the means to start their own dream business. For this purpose, it is worth taking out a loan. Unfortunately, no entrepreneur is able to estimate whether the business will start up as planned in the business plan.

Many banks offer loans for start-up companies. This is mainly because the bank considers the client to be profitable, even if the success of the company is not yet known. Unfortunately, new companies are at risk of bankruptcy. No bank in this case is able to estimate the creditworthiness of a potential client.

There is no account history in this case. Many banks require at least six months of operation of the company to provide any information about the creditworthiness of a potential borrower.

 

Start credit

credit loan

Every year many interesting offers for banks are created for young entrepreneurs who want to set up their own business, but do not have full means to do so. The offer is not wide. Banks decide to grant a loan due to the fact that the borrower is a profitable person.

A positive credit history of the client, as a natural person rather than an enterprise, makes the client much more pleasant to see. This fact may have a positive impact on the credit decision. In the case of young entrepreneurs, banks check the customer and his credit past as a natural person, unrelated to any enterprise.

If a person has a bad past and is behind with repayment of debt, then the credit decision will certainly be negative. However, if the debt has been repaid in a timely manner, then the person does not have to worry about anything, because the decision will probably be positive.

 

How to apply for a start-up loan for young entrepreneurs?

How to apply for a start-up loan for young entrepreneurs?

 

Just like in the case of other loans, it is necessary to submit relevant documents at the bank with attachments. Among them you can mention:

  • – A certificate that he is not in arrears with ZUS and US contributions,
  • – Business plan of the entire undertaking,
  • – Entry into the business register ,
  • – Documents confirming the loan collateral.

 

What are the types of business loans?

What are the types of business loans?

Banks in Poland offer entrepreneurs three types of loans:

  • – mortgage,
  • – rotary,
  • – investment.

If you download an investment loan, the whole procedure will be much more complicated than in the case of a working loan. In the case of a mortgage loan, there is no need for additional loan collateral, because the mortgage constitutes a sufficient security.

In the case of an investment loan, the entrepreneur is obliged to allocate funds for the renovation or modernization of its operations. It serves its development. The money should be allocated for the purchase of equipment, renovation or creation of a new sector.

The collateral may be a bill or a mortgage entry in the land and mortgage register. The simplest form of credit is to take a working or mortgage loan. In the case of the first type, the funds are allocated to the borrower’s current needs, while the mortgage can be taken only if the client has property and establishes it as a mortgage. The working capital loan is used to settle current liabilities or to buy a new item.

As you can see the loan is a great option for everyone. However, before we make a decision about debt, let’s think about whether we are able to pay off the loan. Banks can charge interest, which is very high.

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