Month: March 2020

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.