It often happens that at a certain stage of business additional financing is needed to maintain liquidity or make new investments. Taking out a loan is a normal thing nowadays. In the case of a loan for a business, and more precisely a limited company (sp. z o.o.), it is worth knowing a little more about the conditions on the market and the features of this type of solution. Deciding to take out a loan is always a serious step, so it is good to think it through carefully and use the help of professionals, e.g. an accounting office, where specialists will propose the best solutions for the situation of the specific company.
Features of a loan for a limited company (sp. z o.o.)
Loans can be taken out not only by individuals but also by companies. For limited companies, there are special loans dedicated to this type of business. Money obtained this way can then be used for any purpose related to the company's operations, e.g. financing current liabilities or planned investments. As with other businesses, a limited company must be profitable in order to obtain a loan. Entrepreneurs running a limited company can use various forms of credit:
- a cash loan,
- a working capital loan,
- a revolving credit facility on the business account,
- an investment loan.
When taking out a loan for the company, it is necessary to declare the purpose for which you want to obtain the funds. A detailed list of purposes accepted by banks can be found in the description of the specific banking product or is provided by the bank's representative. In principle, a loan for a limited company is meant to ensure its liquidity or finance company purchases. It is worth entrusting the accounting of a limited company (sp. z o.o.) to an accounting office, where specialists will be responsible not only for day-to-day operations but will also be able to suggest the right solutions if a loan needs to be taken out. Specialists from the accounting office will then prepare all the documents necessary to apply for external financing.
What conditions must be met to obtain a loan?
Not all loan applications from limited companies are considered in the same way. The decision may also depend on the form of tax settlement and the type of business. To apply for a business loan, a company must meet many conditions, including:
- achieve high turnover,
- not having high losses in its business activity (if losses exceed 5% of revenue, the company will probably not receive a loan),
- not being in arrears with ZUS contributions or taxes at the tax office,
- having a good credit history (no debts in the BIK credit bureau or economic information bureaus),
- providing sufficient, solid security for repayment of the loan,
- having an appropriate length of business activity (at least 12 months).
As you can see, a company is subject to a number of requirements designed to verify it positively when applying for a loan.
Who must consent to a loan in the case of a limited company (sp. z o.o.)?
Who consents to a company taking out a loan depends on the amount. If it does not exceed half of the share capital, the consent of the President of the Management Board alone is enough to apply for it. Otherwise, the official consent of the company's Supervisory Board is required.
All shareholders apply for a loan for the company, although the entity responsible for subsequent obligations is the company itself. When applying for this type of financing, the consent of all its members, the management board and the supervisory board, if one has been appointed, is required. As with individuals, a company must be in good condition to apply for a loan. A good credit history and creditworthiness are essential. The credit history of the company's shareholders is also important. If individual shareholders have too many liabilities, the bank may be very reluctant to lend to the company.
