Financing companies in 2021 Anti-Inflationary Loan with EFG guarantee
The Industrial Development Agency as an institution financing the development of enterprises, once again goes beyond the scheme of corporate financing by introducing the Anti-inflation Loan with a guarantee from the European Guarantee Fund. Companies can borrow PLN 10 million for up to 10 years.
- In the IDA we know how important it is to support the development of enterprises, especially those from the SME sector. They are the driving force of the Polish economy. This sector is still the largest group among enterprises. This was not changed by the pandemic, although it had a negative impact on the activity of many of them. Our task is to help them. That is why we offer Anti-Crisis Shield products. They are available nationwide through our network of Business Service Centres. Now we are taking the next step. We are helping businesses not only to survive, but above all to thrive during rising inflation. Anti-inflation Loan with EFG guarantee is not only the financing period exceeding market standards, even up to 10 years in case of investment financing, but also the possibility of capital repayment grace period - stressed Paweł Kolczyński, Vice-President of ARP S.A., opening the press conference "Financing enterprises in 2021. Anti-Inflation Loan with EFG Guarantee."
The Anti-inflation Loan with EFG guarantee is addressed to entrepreneurs from the SME sector in two variants: an investment loan to be used to finalise the investment being carried out and a working capital loan to be used for the entrepreneur's current activities.
Currently, one of the criteria used in the standard loan process is the requirement of material coverage of the loan collateral with a mortgage or a registered pledge. In the case of the Anti-inflation Loan, the primary collateral is the EGF guarantee. The benefits that clients obtain, in addition to those arising from the coverage of the financial deficit, are:
- relaxation of the requirement to materially cover the loan amount with hard collateral,
- the fee for granting the EFG guarantee is borne by IDA JSC. (i.e. 0.2% of the guarantee value),
- financing period going beyond market standards (up to 10 years in the case of investment financing),
- possibility of capital repayment grace period,
- specialised type of financing (restructuring),
- high value of financing - up to PLN 10 million,
- for applications submitted by 31 March 2022. IDA JSC. waives commission for granting the financing.
Konrad Trzonkowski, managing director of ARP S.A. during the press conference "Financing enterprises in 2021. Anti-inflation Loan with EFG Guarantee" summarised the results of the corporate financing division in 2021: - The importance of our corporate finance support is evidenced by the number of entrepreneurs turning to the IDA for a loan or the use of Anti-Crisis Shield products. Comparing 2020 and 2021, we recorded a 21% increase in loan balances in this area, which ultimately translated into a 26% increase in portfolio revenues in a very difficult period of historically low WIBOR1M levels, while continuing to granulate the portfolio (we recorded a 39% increase in the value of the SME clients' portfolio) and maintaining its zero loss ratio (PLN 0 NPL in 2021). Statistics show that in 2021, on every second working day, we provided financing worth PLN 4.7 million, and as part of our shield activity, our advisors analysed nearly 600 applications worth PLN 1.3 billion.
The conference was also attended by Wojciech Miedziński, President of the Board of ARP Leasing, a company from the IDA Capital Group offering complementary leasing products. ARP Leasing plays an important role as a pioneer in the market implementation of innovative solutions in the field of investment financing in the form of leasing. In 2021, the company implemented two more solutions unique in the market, i.e. the #REMaszyneria instrument and the Loan for repayment of lease instalments. By opting for the #REMaszyneria solution, a company can refinance active leasing contracts for machinery and equipment concluded with commercial leasing companies and societies with a 12-month grace period in repayment. In turn, the Loan is intended for temporary (up to 12 months) repayment of leasing instalments to the parent leasing company and can be used by entrepreneurs in the coach passenger transport industry.
- The innovative #REMaszyneria instrument has been appreciated, not only by entrepreneurs, but also by Gazeta Finansowa, which awarded ARP Leasing with the title of Turbine of Polish Economy, and #REMaszyneria itself has been recognised as the best product for SMEs in the leasing category - Also the financial indicators confirm that 2021 was an exceptional year, as the company has almost doubled its sales, and over 100 percent growth can be observed in the number of leasing agreements concluded or the increase in the number of customers. This undoubtedly demonstrates the company's very high efficiency. ARP Leasing's balance sheet total increased by nearly 30%, which translated into a noticeable increase in revenue despite the fact that the WIBOR recorded an average annual decrease of nearly 1/3 (and also taking into account the 12-month grace period for the repayment of the Anti-Crisis Shield instruments) should be considered a very good result," emphasised President Wojciech Miedziński. In 2022, the Company intends to continue consistently combining its special mission with the commercial needs of the SME market.