Banks want to finance companies, but entrepreneurs remain cautious. Where is the problem?

Polish banks declare their readiness to finance the economy, but companies remain cautious about credit. This does not necessarily mean that entrepreneurs do not need capital. Often, it means something else: they need financing that fits a specific business situation, not only a standard credit category.

As Business Insider described after a debate of bank CEOs during the European Financial Congress, one of the challenges for the banking sector remains unsatisfactory credit growth, low willingness among companies to invest and legal risks. At the same time, banks remain profitable and have capital that could support the economy.

At first glance, this looks like a contradiction. Financial institutions want to increase lending, while many companies are still holding back from taking on debt. In practice, however, the question is not only whether financing is available. It is also whether its form fits the purpose, timing and scale of the need.

Caution does not always mean a lack of plans

Entrepreneurs’ caution is clearly visible in NBP data. In the NBP Quick Monitoring Survey, the central bank indicated that a significant share of companies were not planning major investments. At the same time, Statistics Poland data shows that investment outlays of surveyed companies in Q1 2026 were higher than a year earlier.

This shows that companies are not giving up on growth completely. Rather, they are making decisions more cautiously, more selectively and with greater attention to risk. A business owner does not look only at whether financing is available. They also consider whether they will be able to service it comfortably, whether revenues are predictable enough and whether the liability will limit their flexibility in the following months.

That is why access to credit alone does not solve the whole problem. A company may have a financial need, but not necessarily want to take out a large investment loan if the issue is short-term, project-based or linked to a specific contract.

Not every financial need is an investment

In SMEs, financing is often associated with a large investment: buying a machine, expanding a facility, entering a new market or carrying out a major modernization. In such situations, a traditional investment loan may be a natural solution.

But many needs look different. A company may have a signed contract and need funds to deliver it. It may accept a larger order that requires purchasing materials in advance. It may face a seasonal increase in costs or need a buffer to safely bridge the period between expenses and incoming payments.

This is not always a need for multi-year financing. Sometimes the goal is to close a specific stage, secure liquidity during project delivery or cover costs that appear earlier than the customer’s payment.

In such situations, the question “does the company need credit?” is too general. It is better to ask: what exactly are the funds needed for, for how long and from what source does the company plan to repay the financing?

When can traditional credit be a poor fit?

A bank loan can be a good tool, but it is not always the most practical answer to a short-term need. If a company needs money for a specific project, to quickly close delivery costs or to secure liquidity before the customer’s payment arrives, price and access to capital are not the only factors that matter.

Decision time, process simplicity, required documentation, matching the amount to the actual need and linking financing to a specific business purpose can be just as important.

Financing that is too broad may increase liabilities more than the company needs. A process that takes too long may mean that funds arrive too late. On the other hand, lack of financing may mean losing an order, delaying delivery or having to postpone the company’s own payments.

That is why entrepreneurs increasingly think about financing not only through the lens of interest rates. What matters is whether a given solution addresses the real problem: the cost of delivering a contract, a short-term liquidity gap, a seasonal increase in expenses or the need to maintain liquidity during a larger project.

How to choose financing for a company’s situation?

The first step is to define the purpose. A company should know whether it is financing growth, an operating cost, a larger contract, public liabilities, equipment purchase or a short-term liquidity need. This helps avoid a situation in which the chosen tool is too large, too long or mismatched to the problem.

The second step is to define the time horizon. The needs of a company investing in growth over several years are different from those of a company that needs funds for several weeks or months because it is delivering a contract and waiting for payment from the customer.

The third step is to assess risk. It is worth calculating not only the cost of financing, but also the cost of not having cash. This may include a lost order, delayed delivery, lack of funds for materials, tension with suppliers or the need to postpone other payments.

Only after this analysis is it easier to choose a solution. Sometimes it will be an investment loan. Sometimes it will be a business growth loan, if the company needs funds for equipment, business development or ongoing needs related to scaling. Sometimes it will be contract financing, if the funds are needed to deliver a larger order. And sometimes the key step will be to organize financial data and plan cash flow better.

Financial visibility helps make calmer decisions

Access to capital is important, but it does not replace financial control. If a company does not see payment dates, costs, liabilities and planned inflows in one place, it is harder to assess whether it really needs financing, in what amount and for what period.

That is why the financing decision should start with data. An entrepreneur should know which payments are coming up in the next few weeks, what inflows are expected, which costs are fixed and which result from a specific project.

Tools such as PaveNow CFO Suite help organize invoices, costs, payments and cash flow. This makes it easier to see whether the company needs additional funds or whether better payment planning is enough. Financing can then be a considered decision, not a reaction under time pressure.

Financing should solve a specific problem

The discussion about business credit often comes down to whether banks want to finance the economy and whether entrepreneurs want to take on debt. In practice, the situation is more complex.

Companies need capital, but they want it to match their situation, risk level and the moment when money is actually needed. Not every cash issue requires an investment loan. Sometimes a company needs funds for growth, sometimes for delivering a contract, and sometimes it mainly needs better control over cash flow.

The most important thing is that financing supports the company’s operations instead of creating additional pressure. A well-chosen solution should respond to a specific need: enable order delivery, secure liquidity, help use a business opportunity or give the company time until the customer’s payment actually reaches the account.

Want to choose financing that matches your company’s real need?

PaveNow helps companies better control liquidity, monitor cash flow and use financing when cash is needed earlier than the customer’s payment. Check PaveNow CFO Suite if you want to see invoices, costs, payments and cash flow in one place. And if you need funds for growth, contract delivery or a short-term liquidity gap, see business financing and check which solution best fits your situation.