Every year, many companies in Poland declare bankruptcy, often due to debts. It may seem that it is simply impossible to get out of some debts, and running a business costs a lot, stirring a lot.
In order for the company to generate revenues, we must first pay employees, renting premises and other similar fees. We fall into a vicious circle – we can’t earn because we can’t pay expenses and we can’t pay because we don’t earn. So how do you de-debt your company? Is it possible?
Company debt relief through a bank loan
Banks are no more lenient towards companies than against individuals. We cannot expect that we will be granted a loan for companies without certificates – without doubt that our application will be considered at all, you will need to provide a number of documents. It will be necessary to prove the financial situation of the company and whether it is in arrears with payments to the Tax Office and the Social Insurance Institution.
This is important because banks are not willing to grant loans to unprofitable companies. The company’s debt does not necessarily have to be a big obstacle to getting a loan, but only if we achieve high revenues despite it and we have not been late with repayment of previous and current liabilities. An alternative is to apply for restructuring of liabilities, i.e. for example extending the loan period. It is worth trying to negotiate with the bank instead of hiding and counting that the matter will resolve itself.
Debt loans for companies
Loans for companies without certificates can be put between cartoons, but the matter is with loans. Just as payday loans do not require certificates of income from private individuals, non-bank institutions are sometimes willing to grant corporate loans based solely on the company’s income statement.
They can be both ordinary business loans and special consolidation loans, which are to be used specifically to pay off previous liabilities and transform them into one, easier to pay off. By paying off one loan instead of several, we can count on a smaller monthly installment, and often also a more favorable interest rate.
It is difficult to answer the question of how to extend the company
The only downside is the fact that the repayment period of the liability will probably be longer, and thus its total cost will also increase in relation to the sum of the previous ones. This solution, however, can give the company budget a bit of much-needed breath.
It will be difficult for a company in debt to get a loan from a bank, although this is not impossible. Interesting and more accessible alternatives are credit restructuring and taking out loans from a non-bank institution.