Polish companies, like companies around the world, regularly apply for additional injections of money, whether to survive temporary liquidity problems or to develop and implement new business ideas. Today we check where loans for companies can be found quickly, simply and fairly.
In Poland, almost half of the companies struggle, at least periodically, with the problem of lack of financial liquidity. This means that although according to accounting records, the entrepreneur goes a plus, he has no funds to finance his current operations.
This is an extremely dangerous situation, which in extreme cases can even lead to bankruptcy. Why do entrepreneurs have liquidity problems and why do they need loans for companies?
The main reason for the lack of financial liquidity of enterprises
One of the main reasons for the lack of financial liquidity is unreliable customers or contractors who do not make payments for ordered products or services on time and are late with paying their liabilities sometimes even by many months. What’s worse, this problem according to specialists have so-called cascading character.
This means that one company that does not pay on time the other can start the entire chain of liquidity problems. Because if company A does not pay company B for delivery for several months, company B may not have the means to settle its obligations to subcontractors, which in turn may cause insolvency problems with many other companies, etc. So where can entrepreneurs look for loans who have a serious problem with a lack of financial liquidity? The main solutions to this situation are 3:
- A loan or bank loan
- Financial help from family or friends
- A loan for a company from a non-bank institution
Is every solution convenient in every situation?
Theoretically, each solution has its own advantages, but it all depends on the situation. If you need money for development and the company has no problems with financial liquidity, it is possible that the best solution will be a loan for the development of the company from the bank. But is it always the best solution. Read below to find out which of the solutions best suits each situation!
Banks will be happy to “help” those who do not need help
The entrepreneur will probably direct the first steps to the bank. Unfortunately, he will often be cleared there. Yes, banks willingly grant loans to companies, but only to those that have a good financial standing. As a strong and ruthless market player, whose only mission is profit, the bank tries to minimize the risk of loan default. As a result, many companies that deserve a helping hand will be rejected by the soulless credit rating system.
The process of applying for a loan at the bank takes much more time and requires providing much more information to verify creditworthiness compared to the same process at a non-bank company. The process of verifying our application in the bank also takes much longer.
What can contribute to the prolongation of the process of receiving money, and very often we care about time, especially in a situation when the quality and quantity of goods or services that we can provide to our clients depends on the time of receiving a loan for a company. Understanding the needs of our customers, we withdraw money even within 15 minutes.
With the family still goes best in the pictures
Entrepreneurs also sometimes seek help in the family. However, we know how it is. Once we get business loans in the size of even 1 or 2 thousand dollars, and it will be remembered for years. We will also have to take numerous advice from those who provide us with financial resources, how we should run our business so as not to fall into liquidity problems. There is no use for the explanation that the whole situation is not our fault, but the dishonesty or similar problems of contractors. We will need to patiently listen to the instructions.
Also, taking a loan from friends, we may find ourselves in a not very comfortable situation. We will try to borrow money for the shortest term and we will feel uncomfortable if we are not able to return the money each time we meet with friends. In the event of an unforeseen situation, we can even ruin our relationships with our loved ones, which we would not like very much.
A loan for small business from a family, although interest-free, will probably also cause that for years we will be forced to obey all the requests of the person who has given us a helping hand. Often, in the long run, it will not be temporarily profitable for us. It is also worth having the back of your head that it is not worth jeopardizing family relationships, due to the total amount of a few thousand dollars. So where can you go for help, if not for the bank or family?
Fair loan to the rescue
A good solution for enterprises, just like for individuals who are temporarily in financial difficulties, are companies offering non-bank quick loans for companies on transparent principles and with minimal formalities. At Good Credit, an entrepreneur can count on the immediate mobilization of funds from USD 3050 to even USD 10,000.
The repayment of higher amounts of such a loan for a start company can be spread over 2 years. An entrepreneur who wants to use this form of assistance can check the costs of such a loan, i.e. how much he will have to pay back, via an interactive form. It’s a simple and fair solution.
Fair loan not only to the rescue
Interestingly, not only entrepreneurs who have problems with financial liquidity go for loans with Good Credit. Quick loans granted without unnecessary formalities, on transparent terms, are also a good way to finance the development of a company or a new business project.
It would seem that enterprises that are thinking about development have more room for maneuver – their financial condition is good enough that they can make bold plans. However, banks collide with a wall of complex formalities and time-consuming procedures. EU funds are associated with the signing of stringent contracts that significantly limit the catalog of products and services that can be financed from subsidies.