Before You Start Before You Start
Starting a Business Starting a Business
Tax obligations Tax obligations
Social security Social security
Running a business Running a business
Closing a business Closing a business

Financing business activity

Running your business activity at any stage of its development will require capital. Starting your business activity you can benefit from your own resources or other sources of financing for start-up firms (information can be found here). With the growth of company your need for capital will also increase. You will need it both to cover existing liabilities, for example to the supplier of  goods, as well as long-term liabilities for purchases of cars, new buildings or other investment in the development of your activities.

Financing tools

At your disposal depending on, i.a. the size of the company, its condition, level of turnover, there are a number of tools to support funding economic activity (more on this subject in the article on the liquidity management and the article on the loans for companies. Bank loans or increasingly popular among entrepreneurs -  leasing  will allow you to expand your company without large financial resources. Not every company can rely on a favourable credit from a bank - here a good solution, particularly for smaller operators, may be loan funds. If your company is planning to operate in the field of modern technologies and you are looking for new sources of funding for its further development, the source of capital may be venture capital which aim is investing in new and promising, although sometimes risky projects.

Take care of liquidity

While acting on the market you will incur financial liabilities, i.a., to your own customers and financial institutions. Whereas, other operators have obligations towards your business. Ensuring financial liquidity - the ability to meet your obligations relating to the payment of remuneration or consideration for goods and services is essential for the efficient and proper functioning of the company. Bad financial management in extreme cases exposes the firm to the risk of bankruptcy and in the best-case scenario may affect your credibility towards employees, trading partners or financial institutions with which you cooperate. In addition to ensuring liquidity, complying with the deadlines for payment and enforcement of them from your clients you can benefit from other support mechanisms for managing the liquidity of your business. Buyer's credit from a supplier allows you e.g. to defer the payment for goods. Working capital loan or overdraft on a bank account facilitate financing of the on-going activities of the company. In turn, instruments such as factoring and forfaiting will allow to recover receivables from the contractors for products and services. Publication  Liquidity management will help you to familiarise with the methods and instruments for providing liquidity for your business.

You should be aware that time limits for settling late payments and interest are governed by the provisions of the Act of 8 March 2013 on payment periods in commercial transactions. According to it, the period for payment stipulated in the contract shall not exceed 60 days, calculated from the date of delivery to the debtor of the invoice or bill confirming supply of the goods or provision of the service, unless the parties agree otherwise and provided that this arrangement is not incompatible with the socio-economic purpose of the contract or the principles of community life and is objectively justified in view of the nature of the goods or services

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