Small and medium-sized enterprises account for over 99 percent. all enterprises in Poland. They are responsible for three-quarters of jobs and more than two-thirds of GDP. This data shows how important the availability of investment financing in this sector in 2017 is.
The Monetary Policy Council did not change interest rates at the last meeting. Major changes in this area are not expected by the experts later this year. This argues for keeping the costs of bank loans unchanged. However, there are other factors that may affect the availability or increase of loan costs for entrepreneurs . The most important is the general uncertainty as to the development of the economic situation, which is reflected in the ratings of rating institutions. The popularity of this form of financing is systematically falling. At present, today’s bank loans are twice as few companies than, for example, in 2006, despite the lowest interest rate in history.
It is also worth noting that getting money in this way is not easy for the SME company . The entrepreneur must meet the bank’s conditions to obtain a loan. One of them is practically unattainable for young companies, creditworthiness. Most novice entrepreneurs do not have any collateral and there is no long history at the bank. The disadvantage of the loan is also significant costs and the burden of the books of “credited” companies.
Most experts agree that factoring will gain in importance in 2017. It is a quick transfer of the invoice to the issuer for the services or products he has made by the third company – a factor that charges a commission for it. This makes sense in the case of invoices with long payment periods, when the entrepreneur is forced to wait for his money, e.g. 90 days. In order to maintain financial liquidity, he is forced to support himself with a loan or use factoring.
– The growing popularity of such a service on the one hand results from the gradual popularisation of the method and the entrepreneurs’ conviction to it, on the other hand it has improved the offer of factoring companies. The service is becoming more and more available not only for small but even micro-enterprises. It is also deprived of the barrier that some novice entrepreneurs feel uncertain about the success of their business – investing borrowed money. At the factoring, the entrepreneur de facto receives from the factor, his already earned money, so it is not “development on credit” – says Piotr Gąsiorowski – President of the Management Board of eFaktor SA
This method of financing is a response to payment congestion, constituting a significant barrier to running a business, which is claimed by almost 90% of companies that accept payments with a deferred date. Almost half of the surveyed entrepreneurs do not receive payment for sold products or services on time.
In 2017, the role of social fund-raising funds, such as Kickstarter, or Polish Wspieram.to or Polak can also grow. There are already several such initiatives in our country, but so far their participation in financing enterprises in the scale of the whole economy is trace and achievable only for startups with innovative products or services.
In 2017, there will be as many as 316 forms of subsidies for micro and small enterprises from funds coming from various programs. Investment in research and development, smart specialization or information and communication technologies has the greatest chances of financing . The disadvantage of such financing is often a complicated acquisition procedure and a limited scope, eg available for companies from a particular province.
Polish entrepreneurs consider the risk related to the availability of capital and loans as one of the most important for the future of their business, however, according to experts, 2017 will be quite calm in this respect.
– In my opinion, in 2017 there are no serious reasons to worry about the availability of capital for SMEs. Business will always need financing and if there are no catastrophic changes on the market, companies will find one way or another to raise capital. Only the center of gravity is changing – loans have been losing in importance in recent years, and due to its flexibility and widespread availability, factoring is becoming more and more important – says Piotr Gąsiorowski from eFaktor.