Request a small business loan in a few minutes online today
Small business loans online is a product that probably every company in Poland was interested in. Of course, not all businessmen decide to contract it, not all meet the conditions that accompany it and not everyone needs them. Undoubtedly, however, everyone who conducts business in our country knows that the financial liquidity of a company depends on many factors on which most of us have no influence. Common financial congestion in Polish business can significantly hinder the functioning of any enterprise. In a situation where we need quick additional financing, cash loan for companies comes to our aid. However, as you know, applying for a cash loan for a company is quite a time-consuming process, banks approach the issue of assessing our capacity restrictively, and money is borrowed relatively rarely and quite expensive. Is it better to apply for a cash loan for companies or cash loans for individuals? In this article, we will describe the most important differences between these two products and tell you which one to decide on. We invite you to learn more about https://oakparkfinancial.com and small business loans online!
Cash loan for a company – a way to finance its development
No one needs to prove that the development of a company and its employees requires a lot of work and money. Specialized training and qualifications, office equipment, modern equipment, a safe and functional car fleet and endless investment opportunities – these are just a few examples of ways to grow our company, fight for a leadership position and distance the competition. Many industries must also invest in expensive software, licenses and permits, without which they simply cannot function.
Regardless of the scale of our business – is it a sole proprietorship, for which development is crucial, e.g. purchase of new computer equipment, acquiring new qualifications or participation in a prestigious industry conference; whether it is a company employing several dozen or even several hundred employees, facing, let’s assume, the challenge of building a new hall that will allow for a real increase in revenues – it can be helpful just a cash loan for companies. Moreover, according to experts, financing of various needs and projects related to the development of our company should not be one hundred percent derived from our current revenues and/or savings. It is risky to completely “clean” our funds because in an urgent, unexpected situation it will be difficult for us to take a cash loan for the company. It is worth leaving extra resources from the economic activity for various unforeseen moments, and financing development partly from the funds held, partly through a cash loan for companies.
Cash loan for companies or cash loans for individuals?
It is worth explaining at the outset that when a business owner and a natural person come to a bank or loan company, they must prepare for two separate and different loan granting processes. When the proverbial Kowalski applies for a cash loan, he must present his individual income and document it accordingly. Therefore, it is primarily a source of income: whether it is a fixed-term or indefinite employment contract, a civil law contract (mandate contract or contract for specific work) or e.g. a contract. As you can guess, banks will look much more favorably at a contract of indefinite duration (preferably signed before at least one year) than at a civil law contract. You will also need account statements that your salary affects and, in most cases, a certificate from your employer confirming the average earnings over the last three, six or even twelve months. Such a document is filled in by the accountant or HR in the workplace, using the format provided by the bank itself. Exposing it, depending on the size of the company and the workload of the employee, can take from one to even several business days, which, of course, significantly extends the entire procedure.
Relax, we have good news, however: in some banks and loan companies, especially in the case of lower amounts and good credit history, it is possible to take out a cash loan only on a statement of income – that is, based on our declaration of how much we earn, without confirmation by employer. Of course, you will also need an ID document – ID card; sometimes a second document (i.e. driving license or passport) is also required. If the bank requires two ID cards from us and we only have an ID card, you will need to create a letter stating that this is the case. After providing these documents and completing the application – in which we will also need to provide the estimated monthly costs of living and other liabilities (other loans, credit cards, account limits, but also e.g. alimony and bailiffs) – basically the process of applying for a cash loan we already have natural persons behind us. We can expect a decision, which is usually made fairly quickly, even on the same day. Again, people with good credit history and applying for a new loan at the bank where they already have an account will have more money on their accounts. Then things can be dealt with minimum formalities and within a dozen or so or several dozen minutes. However, this is not an offer addressed to everyone, but to customers whom the bank sees as “the best”.
What is the procedure for applying for a cash loan for a company?
The case is not so simple when applying for a cash loan for companies. Why? First of all, we can be disqualified at the start, if our business is conducted for less than 12 months (in some banks it is 6 months), and also when we were not able to show sufficiently high income. It is, moreover, a key issue, because banks, having to provide additional financing to companies, check their situation very carefully. Of course, the documents to be provided include all invoices issued up to 12 months back, statements from company bank accounts, as well as certificates of non-payment in ZUS and the Tax Office. The bank may also demand additional security for such a loan, especially for larger amounts.
Cash loan – for a company or an individual?
As you can see, in order to get a cash loan for companies, we must be prepared for more formalities, the need to provide many documents, certificates, and confirmations. In the case of similar loans for individuals, the formalities are less complex and the decision is usually issued faster. So when should we consider taking a loan for individuals while running a business? Certainly in the case when our company operates less than a year – in particular, less than six months. Banks are reluctant to lend money to new enterprises on the market. A cash loan for individuals instead of a cash loan for companies should also be considered in the event that we are unable to demonstrate sufficient income because our business is just beginning. Time is another aspect – if we need money immediately, the best option will be a cash loan for individuals. However, if your company already has an established position on the market, has been operating for at least 12 months and/or can boast of sufficiently high revenues and you need a larger amount – it is worth applying for a cash loan for the company. Why? It will probably be cheaper than a similar offer for a natural person, which of course is associated with more formalities and a longer waiting period for a credit decision. When looking for additional financing for our business, it is worth considering both options.