Arrears with ZUS (Social Insurance Institution) or the Tax Office (Urząd Skarbowy - US) are a source of immense stress and uncertainty for every entrepreneur. When debts start to keep you awake at night, and the consequences become increasingly real (such as lack of access to bank financing), an urgent need for action arises. Fortunately, there are two main paths that can help you overcome this difficult situation: an installment plan with ZUS/US and a bridge loan offered by companies like PaveNow.
Which solution will be best for your company? Let's look at both options so you can make an informed decision and regain control over your finances.
ZUS/US Installment Plan – A Chance to Breathe?
Both the Social Insurance Institution and the Tax Office offer entrepreneurs who find themselves in temporary financial difficulties the opportunity to apply for relief in debt repayment. If you don't know how much you owe, first read the instructions on how to check your ZUS and US debts online.
How does the ZUS/US installment plan work?
You can apply for:
- Deferral of contribution payment deadlines - you gain additional time to gather funds.
- Spreading the debt into installments - the debt is divided into smaller, monthly payments, making it easier to repay.
- Remission of liabilities or waiver of late payment interest - in exceptional situations, ZUS may agree to remit part of the debt or waive the collection of late payment interest. It is worth knowing that if an installment plan application is accepted, interest on overdue debt may cease to be charged from the day after the application is submitted.
ZUS employs advisors for reliefs and remissions who can help you fill out documents and present possible debt repayment terms. You can contact them by phone, arrange a meeting at a ZUS branch, or schedule an e-visit.
Advantages of the ZUS/US installment plan
Despite certain challenges, the installment plan with ZUS and the Tax Office offers entrepreneurs a number of significant benefits. It can provide valuable support in difficult times, giving the company room to breathe and organize its finances.
Official support and a sense of security
A solution offered directly by state institutions, such as ZUS and the Tax Office, gives many entrepreneurs a sense of security and credibility. You can count on the support of ZUS advisors who will help you fill out the necessary documents and present possible debt repayment terms, which is valuable assistance in a stressful situation.
Potential savings on interest
If an installment plan application is accepted, interest on overdue debt may cease to be charged from the day after the application is submitted. In some exceptional situations, it is even possible to apply for remission of liabilities or waiver of late payment interest, which can significantly reduce the total cost of the debt.
Adjustment of the repayment plan to your capabilities
ZUS and the Tax Office can spread the debt into installments, which allows for adjusting payments to your current financial capabilities. This flexibility can help maintain the company's liquidity, even if you don't have the funds to repay the entire debt in one go.
Disadvantages of the ZUS/US installment plan
Although an installment plan may seem like an attractive option, it is worth being aware of its potential limitations and challenges. These can significantly affect the effectiveness of this solution in the context of an entrepreneur's urgent needs.
Lengthy and uncertain process
The processing of an installment plan application at ZUS can take up to two months. For a company that needs an immediate solution to avoid further consequences (such as account seizure or lack of access to bank credit), this waiting period is often unacceptable. Additionally, there is no guarantee that the application will be fully accepted – an installment plan may be granted for a trial period or cover only part of the arrears, which leaves uncertainty about the future financial situation.
Demanding documentation and bureaucracy
To submit an installment plan application, you must provide extensive financial documentation for the company from the last three years, as well as financial forecasts for the entire repayment period. The application must contain detailed data, including the reason for the inability to repay the debt in one lump sum. This bureaucracy can be burdensome and time-consuming for an entrepreneur in crisis.
Service costs and accumulating interest
Despite the possibility of installment payments, the cost of servicing an installment plan can be, for example, 9.5% per year (statutory interest). Although ZUS may waive the prolongation fee , the process itself still generates costs in the form of interest, which can accumulate if the application is not processed quickly or if the installment plan does not cover the entire debt.
Bridge Loan PaveNow - Speed and Flexibility in Action
A bridge loan (loan for ZUS and US) is a financial solution designed for entrepreneurs who need a quick and effective way to settle arrears with ZUS and the Tax Office, often to unlock access to further bank financing.
How does a PaveNow bridge loan work?
PaveNow, as a specialist in corporate finance, offers a loan for indebted companies, which allows for immediate settlement of liabilities. The process is designed to maximize the reduction of time from application to receiving funds, which is crucial in crisis situations (see also dedicated article on what a bridge loan is).
Lightning-fast decision and disbursement
You can get a loan decision within 24 hours of submitting a complete set of documents. This speed is invaluable when every hour counts to avoid further consequences of debt.
Minimum formalities
The process is maximally simplified to relieve the entrepreneur during a difficult time. Required documents primarily include a completed online application, last year's PIT settlement, a statement of the amount of arrears with ZUS/US, a company bank statement for the last 6 months, and current year's accounting settlements.
Who is the loan for
The loan is available to a wide range of entrepreneurs. It includes sole proprietorships (JDG) and civil partnerships, general partnerships, and limited liability companies with a minimum operating period of 12 months.
Debt range
You can apply for a loan up to PLN 100,000 net. However, we will grant a loan in the amount stated in the arrears declaration from the office – remember that funds are transferred directly to the individual tax account and cannot be used for other purposes.
Advantages of a PaveNow bridge loan
By choosing a PaveNow bridge loan, entrepreneurs gain a number of key benefits that go beyond merely settling debt. It is a strategic solution that helps regain stability and open up new opportunities for business development.
Immediate problem resolution
A bridge loan is an ideal option when you need to quickly settle arrears to avoid further penalties, accumulating interest, or the threat of bailiff enforcement. Quick repayment minimizes risk and relieves the stress associated with debts.
Unlocking access to bank financing
Arrears with ZUS and the Tax Office effectively block the path to obtaining bank loans for business development, as banks require non-arrears certificates. A PaveNow bridge loan allows you to quickly settle these liabilities, enabling you to obtain the necessary certificates and open the door to larger, long-term financing that will drive your business growth.
Improved financial liquidity and peace of mind
Settling arrears with a PaveNow loan immediately improves your company's financial liquidity. This allows for better management of current expenses and investment in the future, instead of constantly worrying about debts. You regain control of the situation and, most importantly, invaluable peace of mind that allows you to focus on what you do best in business.
Flexibility and individual approach
The terms of a PaveNow loan are tailored to your individual needs and the company's situation, and the entire process is maximally simplified. This means you receive a customized solution, without unnecessary bureaucracy and rigid frameworks.
Bridge Loan vs. ZUS/US Installment Plan - Which Solution to Choose? The Key to Making a Decision.
The choice between an installment plan and a bridge loan is a strategic decision that should be dictated by your company's individual situation, the urgency of the problem, and long-term business goals. Both solutions have their strengths and limitations, so it is important to carefully consider which one best meets your needs.
When to choose a ZUS/US installment plan?
An installment plan with state institutions can be an appropriate solution in several specific scenarios. It is an option that requires patience but can bring relief in debt repayment.
- You have time for formalities and waiting - if your company is not under pressure for immediate repayment and current financial liquidity allows for calm waiting, an installment plan can be considered. The decision-making process at ZUS or the Tax Office can take up to two months, which for many entrepreneurs in urgent need is too long. However, if you can afford it, you have time to gather extensive documentation and go through bureaucratic procedures.
- The priority is to minimize costs through interest remission - if your main goal is to minimize the total cost of the debt, and in particular to avoid accumulating interest, it is worth considering this option. In some cases, ZUS may agree to waive the collection of late payment interest, which can bring real savings.
- You prefer official channels and government support - for some entrepreneurs, the sense of security and credibility provided by direct cooperation with state institutions is crucial. The possibility of using ZUS advisory services and negotiating repayment terms within official procedures may be more comfortable for you.
When to choose a PaveNow bridge loan?
A PaveNow bridge loan is a solution designed for the dynamic needs of modern business, offering speed and flexibility that are often crucial in crisis situations.
- You need an immediate solution to the debt problem - if your company is facing bailiff enforcement, loss of opportunities to participate in important tenders, or you simply want to get rid of the immense stress associated with accumulating debts as quickly as possible, the speed of PaveNow's action is invaluable. A decision within 24 hours and disbursement of funds in less than a day is real help in a critical moment.
- You want to unlock access to further bank financing - arrears with ZUS and the Tax Office effectively block the path to obtaining bank loans for business development, as banks require non-arrears certificates. A PaveNow bridge loan allows you to quickly settle these liabilities, enabling you to obtain the necessary certificates and open the door to larger, long-term financing that will drive your business growth.
- You value simplicity and minimal formalities - in the face of debt-related stress, the last thing you need is complicated bureaucracy. PaveNow's simplified process allows for quick and hassle-free resolution, saving your valuable time and energy.
- You care about regaining financial liquidity and peace of mind - settling arrears with PaveNow immediately improves your company's financial liquidity. This allows for better management of current expenses and investment in the future, instead of constantly worrying about debts. You regain control of the situation and, most importantly, invaluable peace of mind that allows you to focus on what you do best in business.
Don't let arrears block your company's future. Regain financial liquidity and peace of mind. PaveNow is your partner who understands the urgency of the situation and offers concrete support so you can focus on what you do best in business.
