Financial terms. Explained simply.

A financial service in which a business sells invoices with deferred payment terms to a factor and receives cash immediately, instead of waiting 30, 60 or 90 days for the customer to pay.

The party providing factoring services: a bank, a specialized company, or an intermediary. It buys receivables from the client and finances them upfront, in exchange for a fee.

The customer (debtor) knows about the assignment of receivables and pays directly into the factor's account. Cheaper and simpler than undisclosed factoring. The standard choice for businesses with no assignment restrictions in their contracts.

The customer doesn't know about the assignment and pays you as usual. Used when contracts prohibit assignment or when discretion matters to you. More expensive than disclosed factoring.

Initiated by the buyer, not the seller. It lets you pay suppliers immediately (earning early-payment discounts), while you benefit from a longer repayment term to the factor.

With recourse: if the customer doesn't pay, the factor demands repayment from you. Without recourse: the factor takes on the risk. The non-recourse variant is more expensive, but protects you if the customer goes bankrupt.

The institution that collects the credit history of bank customers in Poland. BIK isn't checked for factoring. For loans secured by real estate, a poor BIK record doesn't automatically disqualify you. We assess the whole picture.

The National Support Centre for Agriculture, an agency with a right of first refusal over agricultural land transactions. When financing a farmland purchase against a mortgage, we review the situation in light of KOWR's rights.

The simplest form of running a business in Poland. The owner is liable with their entire personal assets. We work with sole proprietorships (JDG) in both factoring and loans secured by real estate.

A company set up solely to carry out a specific project (e.g. building a housing estate). Banks are often reluctant to finance an SPV with no track record. PozaBankiem has experience financing them.

A standardized file format for reporting financial data to the Polish tax authorities. In factoring, JPK files for the last 6 months are a key document showing a business's real turnover.

Short-term financing that covers you until permanent financing comes through: a bank loan, an EU grant, or sale proceeds. Popular among developers and farmers applying for PROW/KPO grants.

A form of leasing in which the lessor remains the owner of the asset for the entire term of the agreement. Instalments are fully tax-deductible for the lessee. At the end of the agreement, the asset can be bought out at a pre-agreed residual value.

Leasing where the asset is recorded on the lessee's fixed-asset register from the start: the lessee depreciates it and settles VAT at the outset of the agreement. Used when ownership of the asset and full depreciation on the business's own books matter.

The price at which the lessee can buy the leased asset at the end of the agreement. The lower the residual value, the higher the monthly instalments, and vice versa. Set in the agreement before signing.

The systematic accounting of a fixed asset's cost over time through write-downs that reduce its book value. In an operating lease, the lessor depreciates the asset; in a finance lease, the lessee does.

Tax paid by individuals, including entrepreneurs running a sole proprietorship (JDG), on income earned. Available tax methods: the tax scale (12%/32%), flat tax (19%), or a lump-sum tax on recorded revenue.

Tax paid by limited liability companies, joint-stock companies and other legal entities on their income. The standard rate is 19%; a reduced 9% rate applies to small taxpayers.

Tax charged at every stage of the trade in goods and services. A business collects VAT from its customers (output VAT) and deducts the VAT it paid to its suppliers (input VAT); it remits the difference to the tax office.

Tax charged on certain legal transactions, including loan agreements and real estate sales. On a loan from a private party (not registered for VAT), PCC is 0.5% of the loan amount, paid by the borrower.

The actual movement of cash in a business: inflows minus outflows over a given period. A business can show an accounting profit while still having serious trouble covering its current obligations.

A business's ability to meet its current obligations on time. Measured by ratios: the current ratio, the quick ratio and the cash ratio.

A situation where a business can't pay its own obligations on time because its customers haven't paid their invoices on time. Often a domino effect: one unpaid debt causes further delays down the supply chain. Factoring is one way to prevent payment gridlock.

Private debt financing provided by non-bank entities: funds, family offices, private investors. The borrower repays the principal with interest, similar to a bank loan, but terms are set individually and formal requirements are lower than at a bank.

An assessment of a party's ability to repay a financial obligation when applying for credit or a loan. Banks assess it rigorously based on income, BIK history and financial track record. For private loans, the value of the collateral matters most.

A points-based assessment of a customer's credit reliability, calculated by the Credit Information Bureau on a 0–100 point scale. The higher the score, the better the repayment history. In factoring and private loans secured by real estate, the BIK score isn't the deciding factor.

Combining several obligations (loans, leases) into one, often with a lower instalment and a longer repayment period. In a consolidation loan secured by real estate, the property becomes the collateral, which can secure better terms. PozaBankiem provides this type of loan only to businesses, to consolidate obligations tied to their operations.

Replacing an existing financial obligation with a new one, usually on better terms: a lower interest rate, a longer repayment period or a lower instalment. Common when the borrower's situation improves or cheaper offers appear on the market.

Warsaw Interbank Offered Rate, the reference interest rate on the Polish interbank market. It forms the base for setting the variable interest rate on many loans: interest rate = WIBOR + the lender's margin.

The official property valuation document prepared by a licensed property appraiser. Required when establishing a mortgage: it sets the market value of the property serving as loan collateral. Valid for 12 months from the date it's prepared.

A licensed specialist authorized to prepare appraisal reports. Licenses are granted by the Minister of Development and recorded in the Central Register of Property Appraisers.

An EU grant program for farmers and rural residents, funded by the EU. The grant is paid out after the investment is completed, hence the popularity of bridge loans that finance the project until reimbursement.

An EU fund supporting the Polish economy after the COVID-19 pandemic. Grants are paid out with a delay after expenses are incurred, creating a financing gap that requires bridge financing.

The process of recovering payment from a debtor who doesn't repay an obligation on time. It can be pursued amicably (payment demands) or through the courts (payment order, bailiff enforcement).

A formal or informal process aimed at settling a debtor's obligations on new terms, e.g. spreading repayment into instalments, writing off part of the interest, or changing the deadline. An alternative to bankruptcy.