Investment loan – what is it and how to get it?

The conditions for granting loans in Poland are regulated primarily by the Act of 29 August 1997 – Banking Law (i.e. Journal of Laws of 2002, No. 72, item 665, as amended).

In accordance with art. 74 the borrower must provide the potential lender with the information and documents necessary for a reliable assessment of his financial position. In the case of an investment loan for companies, not only creditworthiness, but also a business plan describing the subject of the investment is important.

What is involved and how to apply for it?

Unlike consumer cash, car or even mortgage loans, investment loan is an instrument designed exclusively for companies. All enterprises – companies with legal entity status (e.g. companies) as well as entrepreneurs operating in sole proprietorships can apply for additional funds.

As the name implies, the investment loan is directly related to the need for additional investment in the company. It is not granted for repayment or consolidation of other enterprise liabilities. It also cannot be allocated to non-company activities.

The procedure for granting an investment loan

The procedure for granting an investment loan

Is primarily to examine the legitimacy of its purpose. The entrepreneur is required to provide the bank with detailed information on the planned investment, on which it needs to borrow capital. The most common documents that banks want to become familiar with when granting an investment loan are:

  • business plan – defines the nature and type of investment; is to convince the bank that it is profitable, thanks to which there will be no problems with paying off the debt,
  • registration documents – confirmation of business activity or, e.g. participation in the company’s management board,
  • financial documents – PIT, CIT declaration, income statement or other confirmation of financial situation.

When verifying the company’s creditworthiness, the bank may also request documents showing the company’s financial condition in the past. Financial forecasting is best outsourced to experts to increase your chances of getting a loan and paying it back later. Often a key document among all the above is a business plan. If it is factual and attractive, the bank can provide favorable credit terms on its basis.

What to look for when choosing an investment loan for a company?

What to look for when choosing an investment loan for a company?

Entrepreneurs usually use the loan to purchase fixed assets. This applies to both new companies and long-term enterprises, which need to grow further. An investment loan can be obtained for means of transport, production machines and all kinds of tools used to intensify the company’s income.

Investment loans usually require a down payment. Sometimes the minimum own contribution may be e.g. 30% of the investment value, sometimes only 10% – a lot depends on the type and nature of the planned project. When choosing the optimal offer, it is worth paying attention to such issues as:

  • investment loan interest rate (bank’s margin, WIBOR rate),
  • amount of commission and any other fees,
  • detailed loan repayment conditions (including the existence of grace periods and early repayment options),
  • maximum funding,
  • application processing time (it may be crucial for some investments).

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