How private debt financing works in Poland
Who it is for, what can be financed, how the mortgage works, what it costs and how long it takes - and what to expect if you do not speak Polish.
Short answer
A company operating in Poland describes its need, the amount and the property it can offer as security. We check whether the project fits, collect the documents and present it to non-bank lenders. The lender analyses it and proposes terms - usually within 2 days of receiving complete documents. After the agreement and the notarial deed establishing the mortgage are signed, the funds are paid out, usually about 7 days from complete documents. These are typical times, not a guarantee.
Who it is for
Businesses operating in Poland - limited liability and joint-stock companies, partnerships and sole traders, including companies with foreign owners or management. It makes most sense when the company has a property that can secure the loan and a real source of repayment, but a bank is too slow, has refused or does not finance this purpose. We do not arrange consumer loans.
What can be financed
Growth and investment
Premises, equipment, expansion or a large contract that needs capital before the revenue comes in.
Working capital
A seasonal peak, stock, or a gap between costs and payments from customers.
Refinancing
Consolidating several debts into one, including overdue tax and social security liabilities.
Land and real estate
Buying land, premises or a building, including when the bank needs more time than the seller gives.
Development projects
Land, construction, completion of a project or bridge financing between stages.
Acquisitions and bridging
Buying a company or a shareholder out, or bridging until a bank loan or the sale of an asset.
The minimum amount is PLN 50,000; the upper limit depends on the project and the value of the property.
Security
How much can be financed depends on the LTV (loan-to-value), which each lender sets individually for the type and location of the property.
Main security: a mortgage
A mortgage (hipoteka) on real estate in Poland: commercial premises, a warehouse or production hall, land, a hotel, an apartment or a house - owned by the company, its owner or shareholder, or a third party. It can also be registered behind an existing bank mortgage if the combined LTV allows it.
Possible additional security
A promissory note (weksel), a personal guarantee (poręczenie) or a pledge on shares in the company.
What we do not arrange
Financing based on a transfer of ownership of the property or on a sale with a buy-back right. The property stays yours.
Six steps from inquiry to payout
Every project is assessed individually, but the process usually looks like this.
Inquiry
You describe the purpose, the approximate amount and the property you can offer as security.
Initial check
We check whether the project fits the lenders' profile and whether a detailed analysis makes sense.
Documents
Company documents, financial data, the land and mortgage register number and information about the property.
Analysis
The purpose, the source of repayment, the value of the security and the risks of the transaction.
Terms
The lender decides - usually within 2 days of complete documents - and proposes the amount, cost, security and schedule. We help you assess and negotiate them.
Payout
You sign the agreement and the notarial deed establishing the mortgage; the funds are paid out, usually about 7 days from complete documents.
Costs
Private debt costs more than a bank loan and is priced individually: interest, the lender's arrangement fee and external costs such as the property valuation, the notary and court fees for the mortgage entry. Before you sign anything, you see the total cost in one figure.
from 18%
indicative total cost per year - interest and the lender's fee together, set individually for each project
Interest is capped by law. Under Article 359 § 2¹ of the Polish Civil Code, interest may not exceed twice the statutory rate, i.e. 2 × (NBP reference rate + 3.5 percentage points) - 14.50% per year today. This cap applies to interest only; the lender's fee comes on top and is part of the total cost. We only arrange agreements in which the interest stays within this limit.
No fees before signing. We do not charge any fees before the financing agreement is signed. Our fee is payable only after signing and is included in the total cost you see before you sign; who pays it, when and how much is agreed in writing before we start working together.
Indicative figure, not an offer. The final terms depend on the analysis of the company, the purpose, the source of repayment and the security.
Example: a loan of PLN 5 million for 12 months
- You receive
- PLN 4,672,897
- Cost per year (interest + fee)
- 24%
- Average monthly payment (interest + fee)
- PLN 69,470
- Upfront fee (7%), added to the loan
- PLN 327,103
- Total cost over 12 months
- PLN 1,160,748
- Total to repay (capital at the end + monthly payments)
- PLN 5,833,645
Illustrative calculation, the same as our calculator on the Polish homepage: interest of 12% per year on the loan amount (PLN 50,000 a month) and a lender's fee of 12% per year, of which 7% covers the first 6 months and is added to the loan, and the remaining 5% is paid in 6 monthly instalments (PLN 38,941). The capital is repaid at the end of the term. External costs such as the valuation, the notary and court fees are not included. Your terms are set individually.
Polish law, documents and language
We discuss your project in English. The legal documents follow Polish law and are drawn up in Polish.
The agreement
Governed by Polish law and usually drawn up in Polish. You receive the draft in advance and can have it translated and reviewed by your lawyer.
The notarial deed
Establishes the mortgage, which is then entered in the land and mortgage register. If a signatory does not speak Polish, a sworn translator is usually present - arranged with the notary in advance.
Identity checks
Lenders verify the company's representatives and beneficial owners under anti-money laundering rules. Foreign shareholders should expect to provide identity documents.
Key Polish terms
| Polish term | In English | What it means here |
|---|---|---|
| hipoteka | mortgage | the main security, registered against the property |
| księga wieczysta (KW) | land and mortgage register | public register showing the owner and existing mortgages; its number is needed at the start |
| akt notarialny | notarial deed | the document by which the mortgage is established |
| operat szacunkowy | valuation report | property valuation prepared by a licensed valuer |
| weksel | promissory note | possible additional security |
| poręczenie | personal guarantee | possible additional security, e.g. from the owner |
| zastaw na udziałach lub akcjach | pledge on shares | possible additional security over the company's shares |
| odsetki maksymalne | maximum contractual interest | the legal cap on interest (Article 359 § 2¹ of the Civil Code) |
Questions and answers
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Do I need to speak Polish?
No. We discuss the project with you in English. The agreement and the notarial deed are in Polish; you receive the draft in advance, and a sworn translator is usually present when the deed is signed.
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Can a company with foreign owners get financing?
Yes, if it operates in Poland and offers a property in Poland as security. Lenders will verify the shareholders and beneficial owners, so expect to provide their identity documents.
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Is a property abroad accepted as security?
No. The lenders we work with take a mortgage on real estate located in Poland.
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Do you lend your own money?
No. We are an intermediary. The financing agreement is signed directly with the lender, which makes the final decision after its own analysis.
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What does it cost to send an inquiry?
Nothing. We do not charge any fees before the financing agreement is signed, and the terms of our remuneration are agreed in writing before we start.
Is your company looking for financing in Poland?
Describe the amount, purpose and property - we reply in English on the next business day. No fees before the financing agreement is signed.