To run a loan business in Poland, you must meet a number of criteria, submit an application to the Polish Financial Supervision Authority and obtain an entry in the register of loan institutions kept by the Polish Financial Supervision Authority. Due to the need to meet these requirements, we know that currently there are over 450 entities on the market that provide lending activities.
Of course, not all of these companies actively borrow money. We will certainly mention about 50 of those operating on a large scale. They are leaders who provide their services to thousands of borrowers in Poland every day, offering non-bank loans. Of course, their offer is varied – we can, however, specify certain product categories.
Entrepreneur or consumer?
Depending on whether you apply for a consumer or investment loan, the market will offer a different offer. In the area of non-bank financing, there are companies that specialize in financing entrepreneurs. As an entrepreneur, I will be able to count on either a investment loan, a revolving loan or a loan for real estate collateral.
A completely different offer will be for the consumer. The consumer can also count on a wider selection of non-bank loans, because there are definitely more companies on the market with financing for individual customers.
Entrepreneur and consumer – what are the differences?
A non-bank loan for a while or longer?
One of the first questions that consumers should ask themselves when looking for an offer is: How long do I want to pay back the debt? The answer to this question will determine whether we are looking for short or long-term financing. Briefly, it means up to 90 days for the non-banking market, but the vast majority of offers that we find in this category will allow for a 30-day debt.
Long-term financing, also known as multi-installment financing, will allow us to incur liabilities in a period of 3 to even 48 months. The short-term loan will be for people who are planning to achieve a small goal here and now and know that they will soon have the means to repay the liability.
An example would be e.g. car repair. It broke unexpectedly, today I need to fix it, but I know that in a few days I will receive another payment and I will be able to repay the debt from it. Multi-installment loans meet medium-term goals such as buying a car or renovating an apartment.
Advantages of a non-bank loan
In the loan application process, it is important to think about the purpose for which you need money. The goal will determine the structure in terms of period, repayment schedule, type of product.
Similar to the banking market, non-bank institutions offer various options for repayment of liabilities. The basic offer and the widest on the market applies to products with a capital and interest installment. This means that during the term of the contract the customer will pay back all the capital and of course pay interest.
This is the most convenient solution for people who want to be sure that their debt will decrease to zero over time. The market will also find a solution that is line. The client receives from the institution a kind of limit, i.e. information up to which maximum amount he can borrow. He pays interest only on the limit he currently uses. If he overpaid some capital, he can still use it up to the limit granted. The non-bank limit resembles a bank loan in a savings and checking account.