Loan for creating a job for the unemployed


A loan for creating a job for the unemployed is completely different from the one offered by the private company for the unemployed. We translate the rules for providing the former.

The loan for creating a job for an unemployed person currently amounts to a maximum of about USD 24,000 gross. It is six times the average salary. This is a low-interest rate (currently 0.44 percent per annum) that will have to be paid back within the agreed time, usually within 3 years, although it can be repaid faster.

Taken from life


For example, an entrepreneur wants to take out a loan of USD 12,000 for the aforementioned 3 years. The monthly installment was set at approximately USD 335 (it ranges from USD 337 to 333, depending on the monthly interest installment).

On preferential terms, the entrepreneur will have to donate a total of 12081 dollars, i.e. only 81 dollars more. When he declares that he will pay back the loan in a year and a half, he will take 12,000 and give back 12041. In the event he takes 24,000 for 3 years, he will have to repay USD 24,162.80.

Startup support


All this under the “First Business – Support at startup II” loan program. The money received must be used to create a job for the unemployed, including the unemployed directed by the labor office.

Entrepreneurs who cooperate with an intermediary can count on a loan. This means: they want to create a workplace and employ a person registered in the PUP. The regulations allow borrowing also to other interested parties. People who want to create a crèche or a children’s club can apply for such support.

This follows from the provisions on childcare for children up to 3 years old. Whoever runs a farm (meeting the provisions of the Agricultural Tax Act) also has a chance.

It’s the same as someone who specializes in a given agricultural industry, and therefore runs a so-called special department of agricultural production (this is stated in the provisions of the Personal Income Tax Act and the Corporate Income Tax Act). There is a condition, however: for the last six months such a person has had to employ at least one full-time employee.

Conditions for the applicant


If you are willing to borrow from an intermediary, you must meet other points of the contract. He must not be in arrears with the repayment of the loan installments he had previously taken to open and run the business.

He must regularly pay social security contributions, health insurance, Labor Fund, Guaranteed Employee Benefits Fund. Next criterion: the applicant cannot have a criminal record. That is: in the past two years he could not be convicted of offenses against economic transactions.

You can submit as many applications as you want to employ people. When submitting the application, please provide completed loan application form and cost estimate, i.e. a plan of expenses incurred to create a specific job. The form of collateral for the repayment of the amount claimed is also important. The borrower’s own promissory note or surety of a natural person is preferred.

Credits and loans for starting a business


One of the most common questions future entrepreneurs ask themselves is where to get the money to start activities, equipment purchase, office refurbishment and finally: for goods. We advise where to get funds for all this. See for an example

When the perfect plan for conquering the market has come to mind, it comes to collide with brutal reality. If a person planning activities in a business is not eligible for help from the employment office to set up a company, all that remains is to choose a commercial route – a loan fund or a bank. Obtaining funds for starting a business this way is neither easy nor cheap.

The first visit to the bank can be disappointing

The first visit to the bank can be disappointing

A brilliant business idea can be met with a rather cool reception from a credit analyst, for whom facts and figures matter. And these say that one out of 10 startups after one year of activity on the market.

In addition, the situation on the Polish market is unstable, more and more companies are collapsing and fewer and fewer are being created.

This further cools banks’ enthusiasm for lending to novice businessmen. How to convince the bank that this one of ten hopeful entrepreneurs is us?

Good credit history is essential

Good credit history is essential

Good credit history will certainly be useful. The bank will also consider our previous income. Ideally, the company’s founder should work somewhere full time and receive regular and high earnings for a long time.

After that, the bank will have to assess the creditworthiness of the applicant, because the documents proving turnover and profitability the novice company simply does not have. However, there are few such people.

Despite this, there are plenty of offers for beginning entrepreneurs. Good Finance offer startup offers. However, it must be assumed in advance that without collateral and good credit history it will be difficult to get more than tens of thousands of dollars to start and on fairly difficult conditions when it comes to interest on the loan.

This may reach almost 20 percent per annum in some banks

This may reach almost 20 percent per annum in some banks

Businessmen who have good security in the form of a mortgage have the best. Then the bank can offer up to several million dollars mortgage loans.  

It is also much easier to obtain an investment loan than a revolving one. The latter is granted for a short time, usually for a year. Investment can be spread over a dozen years. Usually, however, the bank will be the owner of the purchased machines or programs until the loan is paid back.

Not only banks lend us money Fortunately, but a bank loan also is not the only way to finance a company at the beginning of its activity. It is worth looking for preferential loans, government programs, and EU assistance programs under which you can receive support.

Here, much depends on the business plan, as well as the place where the business was registered – some voivodships do not participate in them.

What can you borrow money for?

Loans are granted to start a business or create a job for the unemployed by persons who have received a loan to start a business. You can receive a maximum of USD 60,000 for 7 years, and the loan can be secured by the lender’s own promissory note and handed by two natural persons.

Loan with a supplement – a chance also for banks


It turns out that “Family on its own” is a benefit not only for borrowers, but also a chance for additional income for the bank.

The popularity of the preferential housing loan is growing from month to month. Forecasts of Good Finance and the Ministry of Infrastructure say that the potential for granting almost 18 thousand in 2009 loans.

Value of subsidies


The value of subsidies alone will amount to USD 80 million. Another good news is the higher price limits per square meter of real estate, which may be subject to a surcharge.

Currently, Warsaw has the highest limit – USD 7,257.6. The following institutions have joined the group of financial institutions participating in the program: Honest Bank and Thrift Bank. Unfortunately, that’s the end of good news.

The mechanism of additional payments is as follows. The lender undertakes cooperation under the program with Good Finance – the administrator of the subsidy pool. After signing the contract, he begins to offer a new product on the market – a loan from the “Good Finance” program.

Its price parameters are set completely arbitrarily. It does not affect only the amount of subsidies. These are determined in accordance with the Act.

The loan will remain cheaper for the first eight years 


Due to the fact that they can constitute up to 50 percent. installment calculated on the basis of a standard offer, the bank has an incentive to increase its margin offered in the program. Such a loan will remain cheaper for the first eight years than the offer from outside the program.

Just three months ago, the loan margins with an additional payment were at the same or lower level than standard loans, reaching an average of 1.5 points. percent. Then obtaining a preferential loan was very profitable. Today, however, loan offers with an additional margin of less than 2 percent. are rare.

They can be found, for example, at cooperative banks or at Thrift Bank, where the loan margin is only 1.45 points. percent. On the other hand, lower margins are still available in standard offers.

Worth spending time looking for real estate


Therefore, the question becomes reasonable whether it is worth spending time looking for real estate that will meet the criteria imposed by the Credit Act with an additional payment (the area of ​​a flat or house cannot exceed 75 and 140 sq m, respectively, and the price of 1 sq m also cannot exceed indicators imposed by law). As long as there are offers on the market with a relatively low margin, the answer is: not necessarily.

The analysis of the offers leads to the conclusion that e.g. in the case of Honest Bank or Honest Bank, after the preferential repayment period, the borrower will pay a higher installment than in the parallel repayment of the loan received on commercial terms.

Of course, we can assume that after eight years we will refinance the loan for a cheaper one. In this way, we will bake two birds with one stone. However, there is no guarantee that this option will be available then. Is it worth taking a loan with an additional fee?

Demand for housing loans is increasing


Despite the tightening of criteria, in the first quarter of 2016, there was a significant increase in demand for housing loans – according to the analysis of the Capital lender. Does this mean that the growing requirements will not stop the long-lasting bull market in the real estate market?

NBP research conducted in cooperation with 25 banks shows that in the period from January to March 2016, the criteria for granting housing loans were tightened. The increase in margins mainly concerned higher risk liabilities. Many banks also declared changes in the rules regarding additional collateral and raised the level of own contribution.

The tightening of margins was not a surprise for the industry. – Greater requirements of financial institutions introduced at the beginning of the year are completely understandable due to the entry into force of Recommendation S in the field of obligatory own contribution of 15% and the recommendation of the Polish Financial Supervision Authority regarding the assessment of creditworthiness – assesses Good Finance, Sales and Marketing Director at the Geo Development Group.

Good Finance fueled demand


NBP analysis proves that the strict criteria did not surprise customers either. On the contrary, in the first quarter of the year, there was even an increase in demand for housing loans. In the banks’ opinion, this is primarily the effect of concerns related to the exhaustion of the funds from the “Apartment for the Young” program.

The economic situation of households or consumer spending, which usually determines the popularity of banking products, turned out to be almost insignificant in this period. – Let us remind you that in mid-March Fine Bank announced the suspension of accepting applications under Good Finance for 2016 – says Good Finance. – The reason for the decision was a total reservation of USD 715 million allocated for subsidies – he adds.

Where does the growing demand come from? USD did not completely close the road to Good Finance, enabling the submission of documents for 2017 and 2018. As a result, 5,000 new applications were submitted on the day of publication of the USD communiqué.

Thanks to this, the entire 2016 turned out to be record-breaking: over 27,000 applications, i.e. three times more than in the first year of the program. According to data from the end of April 2017 had more than 3,000 documents, using the limit in 12.02 percent, and in 2018 36 applications were submitted, reserving the limit is 0.12 percent.

The housing market boom continues


The growing popularity of housing loans proves the constant interest of buyers and the smooth sale of the market offer. According to the analysis of the National Real Estate Market, the first quarter was characterized by a surprising sales dynamics of new premises.

This market situation is a simple way to maintain a bull market in the property market. From January to March, 17.7 percent were commissioned. more apartments than in the corresponding period of 2015 (data from the Central Statistical Office). Individual investors and developers had a significant share in the success.

The latter recorded the largest increase – they put into operation by 53.7 percent. more places than a year ago. – Greater activity of developers is associated with benefits for people looking for their own “M”. The offers are more diverse and better suited to the expectations of customers – emphasizes the Sales and Marketing Director of the Geo Group.

Buyers from Lower Silesia could count on a large variety. In the period analyzed by the Central Statistical Office, the largest, over 68% increase in the number of dwellings completed was recorded in the Lower Silesian Voivodship.

Optimistic forecast for the future

Optimistic forecast for the future

Higher requirements and, at the same time, growing demand for loans and flats is the balance sheet for the first quarter of 2016. How can the market change in the second half of the year?

Although banks declare to maintain their policy in this segment, everything seems to indicate that the second quarter will be equally intense. The reason can be even the season of the year – spring and summer are always associated with increased movement in real estate.

Do you have children? You may not get a loan!


As you can see, a larger number of children directly translates into a decrease in creditworthiness. The least noticeable change related to the size of the family took place in the case of USD loans. In this case, a family of five may have a debt of one-seventh lower than a childless marriage.

For loans in dollars and Swiss franc, this capacity decreased by around 40%. The reason for this is that, when calculating the amount for which the loan can be granted, the bank deducts from the income fixed costs that are associated with the daily functioning of the household.

The method of their estimation may differ depending on the institution

The number of people in the household allows, therefore, to estimate what the average financial surplus can be that could be used to pay off mortgage installments.

When applying for a mortgage, however, you must remember that in addition to the number of people in the household, the bank also pays attention to other factors.

Important information for financial institutions is the number of people working in a given household. In the event that only one of the spouses has a job, even despite sufficient income, the bank will be more cautious than if the income comes from two sources.

This is due to a simple calculation


If the only source of income is lost, the family may have problems paying their debts regularly. The type of work performed by borrowers and the place of employment is also important. Budget employees cannot boast of high incomes, but in their case, the probability of sudden job loss is relatively low.

In the bank’s opinion, such a person may prove to be more reliable than a client with a higher, but irregular income. From the point of view of the maximum loan amount, the form of employment is also important.

Financial institutions have the most favorable attitude towards an indefinite employment contract, which is why it will be easiest for people employed in this way to take out a mortgage.

Before granting a loan

Before granting a loan

banks also try to analyze customer spending. To this end, a common requirement is to provide a bank statement for a specific period. On this basis, the financial institution assesses the ratio of monthly expenses to inflows and estimates the probability of payment gridlocks when paying off loan installments.

The level of assumed future costs of maintaining the purchased flat also affects creditworthiness. Just having a credit card works the same way, not to mention being late. The bank also checks whether the borrower acts as a guarantor for other people’s credit obligations.

In turn, the history of cooperation with the bank may have a positive effect on the creditworthiness of a potential borrower. Having a ROR account for many years, regular repayments of previously drawn loans will undoubtedly facilitate the credit decision of a financial institution.

New housing prices and loan spreads are rising


Generally, people with above-average incomes can count on a lower margin. Borrowers who have the resources for own contribution also have a chance for more favorable conditions. The higher the cost of credit, the lower it will be.

New apartments are competitively priced in comparison

New apartments are competitively priced in comparison

with premises from the secondary market. In addition, many promotions can be found in the developers’ offers. Bonuses are offered not only in the form of discounts, but also various types of promotional packages, including, for example, a free garage, kitchen furniture, or annual rent. Increasingly, the apartment can be bought with a finish.

Purchasing a finished flat is a great help for customers. That is why in our promotional program Family on the finished Alpha estate in Warsaw’s we offer a finish in the price of the flat. For example, a three-room, 55-meter turnkey flat is available for purchase at USD 6,820 / sq m. In our next investments, we will focus primarily on the quality of apartments and prepare finished premises, because such is the demand of our clients. Of course, buyers will have the opportunity to choose an apartment with or without finishing.

This district has recently received the palm of Wola’s priority. Białołęka is also in the top three capital districts with the largest development offer. However, only in Mokotów does the number of apartments on the primary market offer exceed 2 thousand. The number of flats is decreasing. As Emmerson reports, three months ago, over two thousand flats were available for purchase in at least three Warsaw districts.

Loans become more expensive

Loans become more expensive

At the moment, many people are buying flats who invest their savings in real estate. In addition, the purchase is also decided by people who want to escape the need to pay 5 percent of their own deposit for the new loan from the new year. 100% of many banks are lending the value of the flat. However, as analysts point out, banks are gradually increasing the margins and fees associated with granting mortgage loans.

To get attractive credit terms, reduce your margin and commission, use the promotional offer. This is due to the need to use additional financial products. By default, you need to set up an account that will be affected by your monthly salary and obtain a card. It is often required to take out life and unemployment insurance as well as investment products.

How to get a mortgage quickly?


Finding your dream home is not easy. The search often lasts a long time, in the end, we choose a place that we will call home for many years. Once we find the perfect apartment, it turns out that we are not the only ones interested in buying.

We sign a preliminary contract as soon as possible and then the race against time begins. Experts from the Association of Financial Consulting Companies tell you how to efficiently get through the credit procedure and get financial support for implementing your own M. plans.

A mortgage is usually taken for a high amount and for a long period

A mortgage is usually taken for a high amount and for a long period

Therefore, even in a hurry, it is worth spending time comparing the offers of individual institutions thoroughly. The wrong decision can translate into increased costs that we will incur for many years.

Of course, you have to consider the price of the loan, but not only. The offers also differ, e.g. by the required own contribution, the method of calculating the available loan amount or any additional products.

There are a lot of parameters, which means that it is impossible to indicate one offer that would be the best for everyone – notes Good Finance.

Well, the fact that a given institution offers cheap credit if we cannot get it because we do not have the bank required 20%. own contribution. Another offer may be slightly more expensive, but the bank will accept a contribution of only 10 percent.

Offer uneven offer


The solution that will allow us to compare available offers and at the same time will significantly reduce the time that we will have to devote to this is the use of a financial advisor. He can conduct a preliminary analysis of our financial situation and select appropriate offers.

Thanks to this, we will avoid time-consuming and tedious bank visits. It is worth asking him to list all costs – both for the loan and any additional products so that it will be easier for us to make a decision. What’s more, the adviser will also help you at the later stage of obtaining financing, i.e. when applying for a loan.

How to get through the loan procedure?

How to get through the loan procedure?

Even if we have adequate creditworthiness and high savings, it may turn out that the process of obtaining a loan is prolonged. Whether we wait only a few weeks or a few months depends largely on ourselves. Usually, the decision is made after about a month.

During this time, the bank examines the information and documents contained in the loan application. Checks the sources and level of our income, current commitments and costs that we regularly incur. The property we purchase is also assessed, including its legal status and value.

During verification, it may turn out that some documents require supplementation or additional signature. Any such situation suspends the procedure and extends the waiting time for a decision. 

Therefore, if we care about time, we should prepare the loan application as accurately as possible. Specialist support in such a situation can be very helpful and will avoid any downtime. In extreme cases, errors or shortcomings can even result in a negative decision and the need to submit an application to another bank.

Bridging loan – is it worth it? Description of three offers!


A bridge loan is a form of aid that is granted during the implementation of an investment project.

The definition Bridging Loan

Bridging Loan

Banking institutions grant it to investors who have previously submitted an application for an EU subsidy. Its task is to provide them with liquidity until they receive a refund.

The bridging loan may be paid out by banks once or in tranches. This type of financial liability has many advantages:

  • allows you to start investing before receiving a refund,
  • is the source of project financing before obtaining funds from the subsidy,
  • interest rates and collateral are set by banks individually.

Just like a classic cash loan, it repays both capital and interest. In turn, the borrower taking the bridging loan covers only the cost of interest. The capital part is regulated by the EU subsidy.

A bridging loan in connection with an investment loan

Some bank branches together with a bridge loan also offer clients an investment loan. However, this is not a beneficial option for them. Most often, this type of financial liability has a high-interest rate due to the high degree of risk. It is awarded for the implementation of expensive investments.

Who can apply for a bridging loan?

After submitting the application for EU subsidies, the next stage is applying for a subsidy loan. Investors who can apply for a bridging loan are:

  • entrepreneur,
  • farmers
  • local government units,
  • public institutions.

Who has no chance of getting a bridge loan?

Entrepreneurs who are unable to present a reliable business plan cannot count on receiving a bridging loan. The application will not be accepted if they have low credit standing.

Financing for starting a business and a bridge loan

cash money credit loans

Investors who have decided to start a business usually do not have the entire amount needed at the start, even though they have previously used a business loan. The decision was made by a ranking of business loans. To obtain an EU subsidy, an application for funding for starting a business must be submitted. The EU subsidy is usually awarded in the form of refunds.

Pursuant to the provisions of §8 para. 1 of the Regulation of the Minister of Regional Development of August 13, 2008, on granting financial assistance by the Polish Agency for Enterprise Development to support the creation and development of the electronic economy under the Operational Program Innovative Economy, the amount of the EU subsidy may be up to 85 percent. expenditure on the implementation of the investment.

At the same time, §8 para. 2 of this Regulation assumes that the co-financing cannot be lower than USD 20,000, but not higher than USD 1 million. This means that a minimum of 15 percent. investment value must come from own contribution.

How do you get a bridging loan?

The bridge loan is granted by bank branches. An investor who chooses it should prepare for the necessary formalities. The application for a bridging loan must be accompanied by:

  • business plan of the planned activity,
  • attachments in the form of an estimated balance sheet, profit and loss account,
  • documentation showing good customer relations with banks.

You can apply for a bridging loan before or after applying for an EU grant. The borrower should remember an important fact. The bank will not grant a bridging loan to the investor without documenting the grant application.

Bridging loan amount

A bridge loan allows you to finance up to 100 percent. investment costs with funds that come from an EU subsidy. Some bank branches offer borrowers the option of postponing the bridging loan repayment date if the refund is delayed.

After considering the application for a bridging loan, the borrower does not receive any cash. It only has the option of making non-cash payments during the subsequent stages of the investment. Instead, he can enter the loan in the business expenses that he has in cash.

Bridging loan – glossary of terms

Bridging loan - glossary of terms

Credit promise – a preliminary guarantee that the bank will grant a loan to a customer who has creditworthiness.

Tranche – part of the loan that is paid out by the bank.

Registered pledge on the subject of subsidies – is a limited property right that is chargeable to movable property. The purpose of this action is to secure your claims.