Can a new company get a bank loan?

The quadrature of the circle was that banks required income demonstration, surety or collateral to mitigate their risk departments. Only where did the starting company take income from last year or large assets? How is it in 2013? Can a new company get a bank loan?

Banks for small and medium enterprises

Banks for small and medium enterprises

Important changes on the banking market took place when banks specializing in servicing small businesses came into play. It is primarily about ST Bank and MedyBank, but competition from these entities has also changed the approach of universal banks (e.g. MyBank) to micro entrepreneurs.

The second factor of change is the greater activity of public institutions in supporting small business. It is about sureties and guarantees that local government, government and EU institutions offer to banks as collateral for risky loans for new companies.

Where to get a loan for a newly founded company?

Where to get a loan for a newly founded company?

Banks for entrepreneurs are the leaders on the market. ST Bank offers two solutions for new enterprises – Kredyt na Start and Kredyt Start-Up Profesja. These are proposals for entrepreneurs starting their business or running it for up to 12 months.

Depending on the details of the collateral, we can borrow from 30 to 150 thousand zlotys for up to 60 months. It is noteworthy that until recently it was a problem to arrange a loan for a new company for one year.

MedyBank also offers two credit solutions for new companies. These are Start Loan (currently in the Year without ZUS promotion) and Non-Returnable Loan. In the first offer, the bank may borrow up to PLN 350,000, but the maximum loan amount without tangible collateral may not exceed PLN 25,000. In the case of the second offer, the maximum loan amount can be up to PLN 25,000. You do not need a company internship or business plan to receive credit.

MedyBank’s offers, however, are characterized by a high degree of complexity and usually using them involves the need to link to the bank also a company account and other services (e.g. accounting in Tax Care, systematic saving plans, etc.).

What do other banks think about it?

What do other banks think about it?

Other banks practically do not offer ready-made credit solutions for new companies. There are, however, promotional offers – recently MyBank was offering a loan to novice entrepreneurs who will set up a company account in this online bank.
The rest of the banks make the receipt of a loan conditional on the seniority of the business or company and the turnover history on the company account, which is the basis for assessing the creditworthiness of the entrepreneur.

This means that we can only count on a larger injection of cash from the bank after at least several months of operating the company (e.g. MyBank). Some banks are much more conservative in this respect and require the entrepreneur to have been in business for at least a year (or even longer) before deciding to grant him a loan.

The details of the offers, however, can vary significantly, as well as the procedures for assessing the creditworthiness of those responsible for a new company. That is why it is worth contacting bank employees and not being discouraged by the lack of information about loans for new companies on websites. Many banks are willing to take more risks than they did a few years ago when it comes to new business ventures.

Loans for new companies – summary

Loans for new companies - summary

It is easier to get a loan to start and run a new company than a few years ago. Two banks have appeared on the market that are more willing to take risks related to financing of novice entrepreneurs – ST Bank and MedyBank. They offer loans to start a business without guarantees, collateral or mandatory internship.

Other banks are still much more restrained in financing new companies, but it’s worth talking to their representatives about the details of our situation. Even if they do not have credit products for startup companies in the standard offer, their offer is more flexible and open to negotiations than a few years ago.