Financing products
Veryfin
Offer review and factoring comparison
Veryfin reviewed PaveNow's business loans, factoring, and CFO Suite. It also compared PaveNow's factoring terms with other offers available on the market.
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Non-bank business financing includes solutions that allow a company to raise capital outside a traditional bank credit facility. This may take the form of a business loan, invoice or contract financing, leasing, or a loan secured by real estate. Each solution works differently and addresses a different type of need.
The term "non-bank financing" therefore primarily describes where the capital comes from. It does not yet explain what the funding decision will be based on, when the company will repay the funds, or what collateral may be required.
Before choosing an offer, the company should first identify exactly where the funding gap arises. A business that has signed a contract and needs to purchase materials before work begins requires a different solution from one that has completed a service, issued an invoice and is waiting for payment. Financing a larger investment is different again, particularly when the company owns property but does not want to tie up all its available cash.
What is non-bank business financing?
In practical terms, it is capital made available to a company by an entity other than a bank, or obtained through a solution that is not a traditional bank credit facility. The term is broad. It includes both debt financing that must be repaid and other ways of accessing capital, such as leasing or the assignment of receivables through factoring.
In the context of SME liquidity needs, it most often refers to solutions that give the company access to funds now and are later settled according to the agreement, repayment schedule, or payment received from a customer.
It is also important to distinguish between a credit agreement and a loan agreement under Polish law. Under Article 69 of the Polish Banking Law, a credit agreement is an arrangement under which a bank makes funds available to the borrower for a specified period and purpose. A loan agreement is governed by Article 720 of the Polish Civil Code and may also be provided by a non-bank entity.
For this reason, the phrase "non-bank business credit" is commonly used but legally imprecise in Poland. It is more accurate to refer to a non-bank loan or to a specific form of financing outside the banking system. Not every alternative to a business credit facility is a loan in the traditional sense. Depending on the need, it may take the form of factoring, leasing, contract-based financing, or the settlement of tax and social security liabilities, with the funds transferred directly to the relevant authority.
Do non-bank financing and a non-bank loan mean the same thing?
No. A non-bank business loan is one type of non-bank financing, but it does not cover the entire category. Non-bank business financing may be based on different agreements, assets, and sources of repayment or settlement.
With a loan, the company receives a specified amount and repays it under the terms set out in the agreement. Other types of financing may have a different structure. In factoring, the starting point is a receivable arising from an issued invoice. Leasing finances a specific asset. With contract financing, the assessment may be based on a signed agreement, the delivery schedule, and expected project inflows.
The intended use of the funds does not determine the legal form of the agreement. "Contract financing" describes a business need, not one mandatory legal structure. Depending on the stage of delivery, it may take the form of a loan to cover project costs, financing secured by an assignment of future receivables, or factoring once an invoice has been issued.
What types of non-bank business financing are available?
The most useful classification does not begin with product names. It begins with the reason why the company needs cash at that particular moment.
The table does not replace a detailed assessment of an offer. It does, however, show why choosing the first available loan may be a mistake. A company waiting for payment of one large invoice may not need a traditional monthly instalment schedule. A business financing a six-month contract should not accept a schedule that starts putting pressure on liquidity before the project generates its first inflow.
How does non-bank financing differ from bank credit?
The most visible difference concerns the type of provider, but for a business, the way the transaction is assessed may matter more.
A bank usually assesses a company according to procedures designed for a particular credit product. Factors may include trading history, financial performance, existing liabilities, creditworthiness, and required collateral. If the company's needs fit the product and there is enough time to complete the process, bank credit may be a suitable and relatively inexpensive source of capital.
A non-bank provider should also assess risk and repayment capacity. The difference may lie in the greater weight given to current cash flows, a specific contract, an invoice, or an asset offered as collateral. The process can be shorter when the decision concerns a narrower, clearly defined business scenario.
This does not mean that every non-bank business loan is fast, flexible, and easy to obtain. The terms depend on the provider, the company's situation, and the structure of the financing. A lack of questions about financial performance, purpose, and repayment is not an advantage. It may be a sign that the risk has been transferred into high fees or unfavourable collateral requirements.
When does non-bank business financing make sense?
Financing outside the banking system is most useful when it solves a specific timing problem and the company can identify a realistic source of repayment.
The company has a contract but must first pay the delivery costs
A signed agreement does not always mean cash in the bank. In construction, manufacturing, transport, technical services, or event production, the company may first need to buy materials, reserve equipment, pay employees, and settle invoices from subcontractors. Payment arrives only after a stage has been completed, the work has been accepted, or an invoice has been issued.
In this situation, the company should calculate the full funding gap from the first expense to the actual payment from the customer. If the project has a healthy margin, the customer is reliable, and repayment can be linked to settlement of the contract, contract financing may allow the company to accept the work without taking cash away from day-to-day operations.
If you are still assessing a larger project, it is worth checking whether your company can actually afford to deliver the contract, rather than looking only at whether it will generate revenue.
Cash is tied up in issued invoices
When a company has completed the work and holds an undisputed receivable, the problem is not a lack of sales. It is the payment term. Invoice financing can shorten the wait for cash and release funds for new orders, payroll, or suppliers.
In this scenario, an instalment loan may not be the first solution to consider. Factoring links the financing to a specific receivable, and settlement is based on payment from the customer. The company should still check the assignment rules, the advance rate, liability if the customer does not pay, and every component of the total cost.
The company is growing faster than its cash balance
Sales growth can increase the need for working capital. More orders mean earlier purchases, higher inventory, additional working hours, transport, and marketing costs. Revenue grows, but the cash returns only after the full operating cycle has been completed.
A business growth loan may make sense if the additional capital increases measurable sales or protects liquidity during the growth period. It is not enough to assume that "higher turnover will cover the instalments". The company needs to understand its monthly cash flows, margin, and the point at which the investment will start generating cash.
A specific deadline matters
A company may have access to bank credit but be unable to complete the process before the deadline for paying a supplier, providing a bid bond, starting a contract, or preparing for a sales season. In that situation, faster business financing can have real economic value.
The cost of acting quickly must still be calculated. The comparison should cover not only the price of the financing, but also the consequences of losing an order, a supplier discount, or an entire sales season. A fast decision creates value only when the result is worth more than the cost of capital.
Property can secure a larger transaction
A company may own valuable assets but have too little free cash for a larger investment, inventory purchase, or growth plan. In this situation, a loan secured by real estate may provide access to a higher amount than unsecured financing.
Property does not replace repayment capacity. The provider will assess its value, legal status, existing encumbrances, the ability to establish security, and the company's financial position. We explain the asset assessment in more detail in our article on what types of property can be used as collateral for a business loan.
When will non-bank financing fail to solve the problem?
External capital will not repair a business model in which the company consistently spends more than its core operations generate. It may postpone the cash shortage, but the company will then need to cover both its existing obligations and the additional cost of financing.
Particular caution is needed when:
- the company cannot identify a specific source of repayment
- every forecast assumes ideal sales and on-time customer payments
- the financing is intended to cover a permanent operating loss rather than a temporary gap
- a new loan is used only to repay an earlier one, with no plan to change the situation
- the total cost absorbs the margin from the financed order
- the repayment schedule begins before the investment can generate inflows
- the company does not understand what happens if the collateral is enforced or repayment is delayed
A rejected application can also provide important information. If the repayment source cannot be supported by the numbers, adding another liability will usually make the problem worse rather than solve it.
How much does a non-bank business loan cost?
There is no single rate that applies across the market. The cost depends on factors such as the amount, term, company risk, product type, collateral, and repayment structure. The interest rate alone is not enough to compare offers.
Before signing an agreement, the company should establish:
- how much cash will actually reach its account
- how much it will repay in total under the base scenario
- which commissions and fees are deducted when the financing is paid out
- when each instalment or settlement falls due
- how the cost changes if payment is delayed by 14 or 30 days
- what happens in the event of early repayment
- which costs relate to collateral, valuation, notarial services, or establishing a mortgage
The difference between the nominal financing amount and the cash available to the company matters. If the agreement is for PLN 200,000 but a PLN 10,000 commission is deducted before payout, the company receives PLN 190,000. This is the amount that should be compared with the full value of all future payments.
Can more expensive financing be the better decision?
It can, but only in a specific and carefully calculated scenario. A lower-cost offer will not help if the funds arrive after the deadline for starting a profitable contract. At the same time, a fast loan makes no economic sense if its cost absorbs the margin or the instalments fall due before the expected inflows.
The comparison should therefore include two figures:
- The full cost of financing in PLN.
- The value the company will gain or protect by using it.
If financing allows the business to deliver an order with a margin of PLN 80,000, this does not mean that every cost below that amount is safe. The calculation must also account for the risk of rising costs, possible payment delays, and the cash buffer required to maintain day-to-day operations.
How should a company compare non-bank financing offers?
The assumptions must first be standardised. The same amount over three months and twelve months is not the same product, just as monthly instalments are not comparable with settlement linked to a single invoice. A comparison only makes sense when each offer addresses the same need and a similar cash flow schedule.
The company can then assess five areas.
1. Amount and payout structure
Check the nominal amount, all deductions, and the amount that will actually reach the company's account. For invoice financing, also confirm the advance rate and when the remaining balance will be settled.
2. A schedule aligned with inflows
Repayment dates should reflect the company's operating cycle. If customers pay after 60 days, a high first instalment after 30 days may create a new funding gap. The schedule should also account for a late customer payment, delayed acceptance of the work, or a weaker sales month.
3. Total cost and a more difficult scenario
Ask for the total amount payable and a full breakdown of fees. Then calculate both the base case and a delayed-payment scenario. In B2B financing, the rules on early repayment, schedule changes, and fees are primarily determined by the specific agreement. They should not be assumed on the basis of an advertisement alone.
4. Collateral and security
A promissory note, guarantee, assignment of receivables, pledge, mortgage, and declaration of voluntary submission to enforcement under Article 777 of the Polish Code of Civil Procedure do not work in the same way. The company needs to know what event allows the provider to enforce the security, the maximum amount for which the business or guarantor is liable, and what procedure applies after a delay.
5. Provider credibility
Check the company's details in KRS or CEIDG, its trading history, the people authorised to represent it, and whether the terms discussed are reflected in the documents. You can also check the KNF Public Warnings List.
If a provider refers to a particular regulatory status, verify it in the relevant KNF register or KNF entity search. The presence or absence of a company in one register is not a universal test because the appropriate method of verification depends on the type of service. Similarly, the absence of a company from the Public Warnings List is not, by itself, proof that the provider is supervised or that an offer is safe.
Pressure to sign immediately, refusal to provide a draft agreement, an incomplete cost table, or collateral that is disproportionate to the amount are all reasons to pause the process and clarify the terms. For a larger amount or an extensive collateral package, it is worth asking a lawyer to review the documents before the agreement is signed.
What documents are required for non-bank financing?
The required documents depend on the product and amount. Online business financing can simplify the application and data exchange, but it does not mean financing without verification.
The provider may request company registration details, bank statements, financial or tax documents, information about existing liabilities, and evidence of the financing purpose. For a contract or invoice, it will need documentation relating to the receivable and the terms of cooperation with the customer. When real estate is used as collateral, documents concerning ownership, the land and mortgage register, valuation, and existing encumbrances will also be required.
The document list is not, by itself, evidence of excessive bureaucracy. It allows the provider to assess whether the amount, term, and repayment structure are realistic. A fast process should result from efficient data analysis, not from ignoring risk.
What does the non-bank financing process look like?
The process usually begins with a short description of the company, the required amount, the purpose of the financing, and the expected deadline. This makes it possible to determine whether the need concerns costs incurred before contract delivery, an issued invoice, general growth capital, or a larger transaction requiring collateral.
The next stage is document submission and assessment. The provider reviews the company's position, cash flows, liabilities, and repayment source. Depending on the product, it may also assess the customer, agreement, receivable, or property.
Credit bureau enquiries and assessment methods may differ depending on the legal form of the business and the transaction structure. We explain this in more detail in our article on whether a business financing application affects BIK.
After a positive assessment, the company should receive the terms, cost, and repayment schedule. The funds are paid out only after these details have been reviewed and the required documents signed. "Fast business financing" should therefore mean an efficient process, not a decision made without data or an agreement signed without enough time to read it.
What does non-bank financing look like at PaveNow?
At PaveNow, selecting a solution begins with the company's purpose and cash flows. If it needs capital for growth, inventory, an investment, or a larger order, we assess the possibility of a business loan. If repayment is linked to a specific invoice or B2B contract, the right direction may be financing based on the agreement, expected contract inflows, or an existing receivable. For larger capital needs, we can also assess real estate as collateral for a loan.
Not every company will qualify for financing, and not every available amount will be safe for the business. The assessment covers the company's position, purpose, documents, existing liabilities, and realistic source of repayment.
Non-bank business financing - summary
Non-bank financing is not a single product or a simple replacement for bank credit. It includes different solutions that can finance growth, contract delivery, an issued invoice, the purchase of an asset, or a larger transaction secured by real estate.
A good decision starts with identifying the point at which the funding gap arises. The company must then match it with the repayment source, term, schedule, and collateral. Only then should it compare the price of specific offers.
If the company understands the full cost, can test a delayed-payment scenario, and can still maintain day-to-day operations, financing may help it take advantage of the right opportunity. If repayment depends on another loan or an undefined improvement in sales, the problem runs deeper than a lack of capital.
