Fintech: Rescue for a company without creditworthiness
In recent years, the fintech market in Poland has been developing dynamically, offering microenterprises alternative sources of financing. Fintechs have become an important element in this ecosystem, especially for the smallest companies, which often have limited access to traditional sources of cash.
It can be said that they have successfully filled the financing gap for businesses that banks are unwilling or unable to support.
For companies with lower creditworthiness and a short financial history, as well as for industries considered risky by banks, such as construction or transport – this is usually the only chance to obtain the necessary cash.
According to the latest market data, in July this year banks granted 5.8 percent fewer loans to micro-entrepreneurs, and their value was 4.2 percent lower compared to the same month last year. More and more micro and small companies, for which banks have tightened their criteria for granting loans, are having trouble obtaining financing. Therefore, they are looking for support in fintechs.
Factoring without factoring: what is it?
– There are many situations in which an entrepreneur must immediately find money to cover sudden business expenses: car repairs, repairs to machinery and equipment, and even current fees. He cannot take out a loan because the bank refuses it – explains Emanuel Nowak, an expert at the factoring company NFG.
As the expert further explains, such an entrepreneur in the described situations cannot use factoring either, because he has not yet issued an invoice to the contractor. Therefore eGotówka is a way to meet needs that arise ad hoc.
–This is a type of advance factoring. It differs from classic factoring in that it does not require the submission of invoices. This solution is therefore eagerly used by companies that do not have sales documents – explains Emanuel Nowak.
According to BizLend estimates, about 30% of small businesses will use non-bank financing in the future, and several hundred thousand entities already need funds immediately.
Fintech: Why It’s Faster Than a Bank
According to the report “Mapa Polskiego Fintechu 2024” by Cashless.pl, 60% of Polish fintechs already use various solutions containing artificial intelligence, and almost 90% plan to do so.
Companies are increasingly using AI in areas such as risk assessment, fraud detection and customer service. One third of the fintech industry in Poland are entities with an advanced level of development, a corporate structure and an established market position.
Their pace of change is impressive, which allows them to better meet customer expectations. More than half, or 54 percent, of fintechs in Poland were established in 2011-2020.
Entrepreneurs want access to simple and fast cash, often without having to present invoices or additional documents. However, this does not mean that the transaction will be devoid of any security.
– Fintech, in addition to advanced technological aspects, must also guarantee the security of financing via the Internet. This requires: appropriate risk management and customer verification. However, everything is done automatically and in no way affects the speed of the decision to grant financing. This is where we differ from banks – emphasizes the NFG expert.
