FAQ – B2B

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FAQ

What is a credit in the current account?

The overdraft facility will allow you to settle your current expenses while maintaining a safe level of financial liquidity. You do not have to remember about loan repayment dates – each bill will reduce the balance of debt in an automatic manner. You can re-use these funds for making payments, because an account loan is a renewable loan.

Such a loan is attractive especially when your company is actively operating and systematically receives receipts to the account (payments from contractors, tax refunds or other).

What is a working capital loan?

The revolving loan is a non-revolving loan whose repayment schedule is determined individually. Depending on your preferences, the loan capital can be repaid in installments (monthly or quarterly) or once at the end of the loan period.
Companies allocate funds from this loan most often for the purchase of raw materials, materials needed for production, goods, as well as for financing current payments to suppliers and other entities for which the company has obligations.
This loan (short- and medium-term) is intended for enterprises active in the market and looking for a way to reduce the risk of congestion in their settlements.

What is revolving loan?

A revolving loan is a revolving loan intended to finance the current needs of your company. This is a good solution for companies that can not expect regular revenues from contractors and would like to postpone their own commitments in time.
Interest on the loan used is repaid on a monthly basis on the last business day of the month, and principal repayment can be made at any time convenient for your company when the loan agreement is in effect, making a one-off payment by bank transfer or using standing orders.

What is an investment loan?

An investment loan is a non-revolving loan. It can be used for the implementation of projects of modernization, development, replacement or for the purchase of fixed assets. The loan may also be granted for such activities as refinancing of incurred expenditures or repayment of an investment loan in another bank.
If you have an idea for further development of the company, you have already incurred some financial outlays and are looking for additional resources that will complement your investment outlays, you can count on financing up to 80% of the investment value. The final amount depends primarily on the company’s creditworthiness and the assessment of the financed undertaking.

What is a loan for technological innovation?

A loan for technological innovation is an instrument of financial support from EU funds aimed at increasing the innovation and competitiveness of micro, small and medium enterprises.
It is intended for the implementation of technological investment, the subject of which is the implementation of new technology. The new technology may be the result of own research and development (R & D) or R & D works purchased by entrepreneurs under the project. The technology should enable the production of new or significantly improved goods, processes and services in relation to those manufactured in Poland so far.

What is a mortgage loan, also known as a mortgage loan for any purpose?

Kredyt pod hipotekę / mortgage loan is a non-revolving loan intended to finance the needs related to the ongoing operations of the company. The basis for its protection is the property owned by the company. If it is important for you to manage finances in a long-term perspective, and your company has been operating on the market for a minimum of 2 years – this solution is for you.
Funds from this loan are most often used to purchase raw materials, materials needed for production, goods, as well as to finance current payments to suppliers and other entities for which the company has obligations.

What is a multi-product line?

Multi-product line provides flexible financing for your company’s day-to-day operations. Under one agreement and one global renewable limit, you have the option of using many products.
If you are using different forms of financing as well as securing and settling commercial transactions, it is worth using this solution. Under one agreement, you gain access to additional funds for current turnover in the company and to instruments confirming the credibility of your company and ensuring security of cooperation with contractors (guarantees and letters of credit).
The construction of the line and the amount of financing are adapted to the current needs and capabilities of the client.

What is a loan with a de minimis guarantee (BGK program)?

The PLD program is particularly beneficial for companies looking for additional capital for financing business activities that do not have sufficient assets to secure the loan.
The amount of the guarantee depends on the amount of de minimis aid received by the customer, the limit of which for one entrepreneur is PLN 200,000. EUR for 3 years (EUR 100,000 for an entity operating in the road transport sector).

What is a cash loan for the Company?

A loan for the ongoing improvement of your company’s liquidity.
Regardless of whether you are planning to make small expenses or if you are thinking about a larger investment that allows you to develop your business, the solution may be a cash loan. You will be able to spend the funds obtained in this way depending on your needs. Monthly repayment of capital and interest will give you a sense of control over finances and the possibility of long-term expenditure planning.

What is a credit card?

A convenient payment medium widely accepted in retail and service outlets in Poland and around the world.
With the help of the card, you can also make transactions at ATMs and online payments, using funds granted by the Bank.
It is also a universal currency – by going on a foreign trip, you do not have to worry about exchanging money.

What is a consolidation loan?

A consolidation loan allows you to convert all of your credit obligations into one loan. In the case of a consolidation loan, the repayment date may be up to 30 years, but thanks to this the monthly installment is lower than the sum of all our existing liabilities.

What is loan refinancing?

Change of commitment to another new loan with significantly better conditions. By design, they are solutions for people who for various reasons are not satisfied with their previous commitment.

What is a Letter of Credit?

A letter of credit is a written commitment of the importer’s bank to pay the specified beneficiary (exporter) a specified amount of money on the agreed date. The condition for payment is the delivery by the exporter of relevant transport documents stating the fulfillment of the trade contract. The deadline for submitting documents is also the validity date of the letter of credit. The letter of credit is open after accepting from the client an order to issue a letter of credit and to establish a liquid security.

What types of letters of credit do we offer?

  • your own (import) – you as an importer are ordering us to open a letter of credit, and we – in accordance with your instructions – undertake to pay a certain amount to the beneficiary (foreign exporter) when it meets the conditions of the letter of credit. The terms of payment of the benefit, including a list of required documents, are included in the contract.
    • foreign (export) – by cooperating with a foreign exporter’s bank, we make a letter of credit notification, familiarizing you with its terms. At the request of a foreign bank, we can confirm the letter of credit, that is, we agree to full financial commitment. We also investigate the required documents provided by you and inform you of any shortcomings or irregularities.

What is a bank guarantee?

A bank guarantee is an independent commitment of the bank to pay to the beneficiary of the guarantee (the authorized entity) the amount indicated in the guarantee (guarantee sum) if the principal of the guarantee for which the guarantee was issued fails to fulfill his obligation.
Payment to the beneficiary of the guarantee takes place directly by the guarantee bank (the payer’s bank) or through another bank after the beneficiary has fulfilled the guarantee of certain payment terms that can be established on the basis of document guarantees specified in the contract, eg invoices or transport documents.
It is an effective instrument that increases the security of transactions and reduces the risk of default by a contractor. When the guarantee enters into force, it becomes an instrument that operates independently of the validity of the basic legal relationship (eg a commercial contract) between the principal and the beneficiary.

What is documentary collection?

Documentary collection is a conditional form of payment used in foreign and domestic trade. This is a written request from the bank of the payer (exporter, seller) addressed to the payer’s bank (importer, buyer) to issue the payer specific documents entitling him to dispose of the goods, in return for meeting the conditions set out in the collection instructions:
• payment of the amount indicated in the order or security of payment (accept the bill of exchange or obtain acceptance of the bill of exchange and payment for a promissory note) or
• issuing documents on other conditions.

What is Leasing?

Leasing is a form of investment financing in which the subject of the lease is purchased by the financing party (leasing company) and then put into use by the user (ie the entrepreneur). In exchange for the possibility of using the subject of leasing, the entrepreneur pays the financing party the monthly fees (leasing installments) set out in the contract.

What is an operating lease?

Operating leases – the subject of the lease agreement is included in the list of fixed assets of the financing party, which makes depreciation write-offs; leasing installments are tax-deductible costs for an enterprise, which also has the right to purchase the item after the end of the lease.

What is financial leasing?

Financial leasing – the subject of the leasing contract is included in the list of fixed assets of the enterprise, which makes depreciation write-offs. The cost of earning is the financial part of the leasing installments for the enterprise, and the transfer of ownership of the leased asset to the enterprise takes place after the end of the leasing contract.

What is real estate leasing?

Leasing is an alternative to the loan in the form of financing the purchase or construction of real estate, allowing the use of real estate without significantly reducing own funds. In the case of investments under construction, this stage is financed with a loan which, after obtaining the use permit, is transformed into a lease.
Leases usually finance real estate owned by the customer (leaseback) or belonging to third parties. In any case, after the completion of the leasing contract, the real estate becomes the property of the entrepreneur.

What is a leasing loan?

A leasing loan is an attractive form of financing the purchase of a fixed asset that becomes the property of the borrower. The product may be used, among others, by companies that are not VAT payers, and would like to combine financing under leasing and EU subsidies.

What is incomplete factoring?

Non-inclusive factoring is a package of services consisting in comprehensive management of the Customer’s receivables and financing of its current operations through the conversion of receivables frozen in invoices into cash. This product significantly improves the management of the debt portfolio, and the financing is tailored to the current needs of the client, who has the ability to decide on the final shape of the service. In the event of a partial factoring transaction, the Customer may submit selected domestic contractors. Settlements are carried out in Polish zlotys.

What is local government factoring?

Self-government factoring is a financial service in which the Bank provides suppliers of local government units (LGUs) with a certain source of financing trade credit without having to examine their economic and financial situation. As part of the factoring agreement signed with the client, the Bank purchases and finances 100% of the nominal value of the receivables due to the Customer from LGs and takes over the risk of delaying the repayment of the receivables by LGs.
Within the product, there is also the possibility of repayment by local government units in the period longer than the payment deadline, i.e. in accordance with the repayment plan accepted by the Bank.

What is full factoring with insurance?

As part of full factoring with insurance, apart from fast financing, settlement and collection of receivables, due to the fact that the Bank / Factoring company has taken the risk of not repaying by the contractor, the client obtains protection against the lack of payment for the goods or services sold.
The cooperation of the Bank / Factoring Company with the insurance company gives the Customer the opportunity to report domestic counterparties to transactions, and the assessment of the contractor and the limit granted does not require presentation of its financial statements. There is also no prior cooperation between the client and the contractor, which means that the client can submit both the contractors with whom he has already cooperated, as well as those with whom he has just started cooperation or plans to start cooperation.

What is the collection of payments?

Collection of payments is a package of services consisting in comprehensive management of the Customer’s receivables. The customer may submit selected counterparties to the transaction, and the settlements are carried out both in Polish zlotys as well as in foreign currencies. The Collection of Payments is offered under one factoring agreement, including Non-Compulsory Factoring or Full Factoring with Insurance.

What is an investment loan for housing communities and cooperatives?

The loan is intended for any investment purpose or refinancing loans from other banks.
Creditworthiness calculated based on the amount of the renovation fund.

What is a car loan?

Financing of passenger cars and small vans with a maximum total weight not exceeding 3.5 tonnes.

What is an investment loan for the purchase of real estate?

Corporate loan for the purchase and renovation of real estate, including the construction of real estate with a developer – the primary market, construction and extension of the economic system, modernization, adaptation of real estate related to business operations and refinancing of loans for the above purposes.

What is an EU loan?

The possibility of receiving a non-returnable EU subsidy. Possibility to partially repay the loan.

What is the financing of investment projects?

Project Finance consists in financing an economic venture in which the investor’s own share is relatively small, and the loan is secured by the assets of the venture.
Investment projects that can be financed by Project Finance:
• energy projects,
• real estate projects (office buildings, warehouses),
• development projects (housing investments),
• telecommunications projects,
• petrochemical projects,
• infrastructure projects,
• The investor can apply for financing for a new investment project in a new company in the initial phase of the project or failure of the project,
• in some cases, the bank is willing to provide financing for a given project as opposed to financing the company, where the credit risk exceeds its capabilities,
• the risk associated with the project can be divided among many financing institutions,
• smaller sponsor’s own contribution than required for standard investment financing.

What is the Bond Issue?

Commercial bonds are securities issued by business entities in PLN or other currency in order to obtain funds directly from the money and capital market.
• an alternative to a loan,
• the ability to adjust the emission structure to the Issuer’s financial needs,
• emission rolling mechanism.

What is the credit of AGRO Ekspres?

A bank overdraft secured with a mortgage for those who run a farm.
High loan amount – up to 70% of the value of agricultural real estate, up to PLN 2,000,000.

What is the Agro Formula credit?

Loan for owners or co-owners of agricultural real estate; perpetual users and tenants of agricultural real estate.

What is Agro Progres Loan?

Flexible investment loan for persons engaged in manufacturing activity in agriculture, among others : purchase of land, purchase of machines and means of transport, purchase of equipment for agricultural production, purchase of a basic herd; purchase, construction or modernization of farm buildings.

What is bridging financing?

One of the ways that a company can secure financial liquidity when spending large sums of money on investments that can contribute to the development of its operations, increase its market and transactional value.

What is non-bank financing?

Alternative financing for non-bank companies.

What is the Business Plan?

The study / document of the company containing the assessment of the profitability of the business venture [1]. Prepared for internal and external needs of the company – including in order to obtain sources of investment financing. It contains a description of the goals that the company intends to implement in the future, taking into account the existing market, financial, marketing, technological, organizational and human resources conditions. Its elements include financial analysis, market analysis, SWOT analysis.
A business plan is often compiled as an attachment to the loan application. The borrower must demonstrate that the new venture will be profitable. In order to effectively manage business plans, they should prepare both newly emerging enterprises as well as enterprises already operating at crucial moments related to the change of the operating profile, entering new markets, mergers or acquisitions.

What is cash / financial flow?

Cash / cash flows are receipts and expenses that directly affected the cash and cash equivalents in the entity during the period covered by the statement. In the cash flow statement, cash flows are divided into operating, investment and financial operations. Information on cash flow is extremely important as it helps in assessing the entity’s ability to generate cash, allows the recipient to create models for the source and size of obtained cash, as well as assess the directions and volume of their use during operations, and compare the current value of future cash flow.

What is restructuring?

Rapid changes in assets, liabilities or organization of the company. The aim of the restructuring is to create premises for the growth of the company’s value. Restructuring is equivalent to transformation.

What is bankruptcy?

The procedure initiated in the event of the debtor’s insolvency, consisting mainly in the joint enforcement of claims by all its creditors.

What is the estimated survey?

He is the opinion of an expert property appraiser about the value of the property and is an official document. It can be made only in writing.
The report contains information necessary for the appraisal of property by a property appraiser, including an indication of the legal basis and conditions of performed activities, substantive solutions, presentation of calculations, final result.
For the Bank it is a document confirming the value of collateral as the basis for granting financing.

What is the LTV indicator?

LTV (from loan to value) is an indicator that determines the amount of the loan in relation to the value of the collateral (ie, the value of the property). Banks use this indicator to determine, for example, the maximum amount of a mortgage loan (eg financing up to 100% LTV). The LTV ratio may change over time, due to the change in the value of the property and the decrease in the loan amount.

What is the LTC indicator?

It is the ratio of loans to costs (LTC) is a metric used in commercial real estate construction in order to compare the financing of a project (offered by a loan) with the cost of building a project. The LTC ratio allows the commercial real estate sector lenders to determine the risk associated with offering a construction loan. As in the case of the LTC ratio, the LTV (loan-to-value) ratio compares the construction loan amount with the market value of the project.

What is the balance sheet?

The balance sheet is a part of the financial statement presenting the statement of assets and liabilities of the unit for a specific moment (eg end of the company’s accounting period).

What is the profit and loss account?

RZiS, also known as the profit and loss account – one of the basic and obligatory elements of the entity’s financial statements. It informs about the effectiveness of particular activities and what is the overall financial result of the company.
The profit and loss account summarizes the company’s revenues and costs and shows its ability to generate profits and self-finance. The list includes various categories that increase or decrease the financial result.

What is profit?

Profit is a positive financial result, surplus of sales over general expenses, constituting a real earnings of the enterprise, which is obtained by deducting costs from revenues. It is the subject of material interest, as well as the source of income of the owners, the company’s staff and self-financing of development.

What is the loss?

Loss is a negative financial result of an enterprise or a specific investment or loan. net loss – in accounting, this is a negative financial result of the company after taking into account the mandatory decrease of profit or increase of loss.

What is a bank statement?

A bank statement is a document prepared by a bank for a bank account holder, in which the turnover for a given period on a given account is aggregated.

What is the KPiR?

KPIR is a commonly used abbreviation: the Book of Income and Expenses. It is a record that serves the entrepreneur to enter revenues and expenses (ie costs). On its basis, taxable income is determined. It is run by people who settle on a general and linear basis.

What is REGON?

(National Economy Register), National Register of Entities of National Economy – a register kept by the President of the Central Statistical Office.

What is NIP?

Tax identification number (NIP) – a ten-digit code used to identify taxpayers in Poland. Is given by the head of the tax office.

What is KRS?

The National Court Register is a nationwide list of entities such as companies, enterprises, associations, etc. and debtors. It is run by the Ministry of Justice and selected district courts.

What is BIK?

Credit Information Bureau S.A. (BIK) – a company founded by the Polish Bank Association and private banks, whose task is to collect, integrate and share data on the credit history of bank clients, credit unions and, recently, also non-bank loan companies.

What is BIG?

Economic Information Bureau – black list of debtors. Delays in loan repayment or late payment of other types of indebtedness may cause that we will be entered in the register of debtors of one of the economic information offices (BIG).

What is KRD?

Krajowy Rejestr Długów Biuro Informacji Gospodarczej SA is one of the basic tools to check the current situation of the client. It operates on the basis of the Act on sharing business information and exchanging economic data.

What is a loan agreement?

Bank loan agreement – means the bank provides the borrower with a certain amount of money for a specified period of time and it also states that the borrower is obliged to return the loan amount together with interest. The loan must be used as intended.

What is the annex to the contract?

The annex to the contract is signed if the provisions of the main contract change. By adding an order, we can add provisions and remove them.
Annex can change the content of the contract in any way corresponding to the parties, eg increase the value of the contract, include an additional scope of work, or for example extend the duration of the lease, but also correct the errors that were included in the contract.

What is a commercial contract?

Trading contracts are an essential tool for most companies.
Well-written contracts: create a clear picture of the parties’ relationships and the scope of their mutual benefits, explain the meaning of the terms used, contribute to the increase of comfort in cooperation with a given contractor; they give the tool protection of the rights and interests of the party, which translates into an increase in the sense of security and the level of trust in the contractors.