To stay on the market, many companies must invest in both employees and machines. Often, it is access to specialized equipment and technologies that determines whether a company will win further orders. Their purchase can be financed from a technology loan. We explain what a technology loan is and how to apply for this product effectively.
What is a technology loan?
Production companies invest in modern technologies, because their competitiveness depends on them. However, unlike other companies operating on the market, their representatives do not direct their steps to commercial banks to find the best offer. A technology loan is a solution dedicated to micro, small and medium enterprises.
A technology loan is a special subsidy that allows an enterprise to cover the costs of implementing a new technology. Taking advantage of this offer is very beneficial for entrepreneurs because the funds operate in a similar way to an investment loan. The enterprise repays only part of the borrowed amount – the rest (up to 75 percent) of the funds comes from the Technology Loan Fund – these are state funds.
Is it worth applying for a technology loan?
Why is it worth applying for a loan for technological innovations? Companies from the micro-, small and medium-sized enterprises sector often experience difficulties in competing with larger players on the market who use their stable position and resources in the fight for customers. To counteract this phenomenon and support the development of an innovative economy, the Intelligent Development Operational Program has been implemented.
The financial support offered under this program in the form of a technological loan translates into measurable benefits for owners of small and medium-sized businesses. In addition to the obvious financial aspects, implementing and using innovative technologies in the daily work of an enterprise means gaining a competitive advantage. According to PARP data presented in the report “Monitoring the innovativeness of Polish enterprises. Results of the second edition of the survey 2019 ”among the surveyed entrepreneurs:
- 41 percent acknowledged that the innovations implemented in their companies largely translated into an increase in competitive advantage and market share,
- 32 percent admitted that the innovations implemented in their companies translated to achieving these results to a great extent.
A technology loan is therefore worth considering as a form of financing that will allow you to introduce innovative technologies to your business.
How to get a technology loan?
In order for a technology loan to be launched for a specific company, it must submit an application with the required attachments to one of the banks that has signed a contract with Cream Bank. Because part of the funds allocated, the company will have to return, most of the required documents relate to its current financial situation – it is necessary to determine whether the company will be able to repay the technology loan.
An entrepreneur applying for a technology loan will wait a maximum of 60 days – during this time he must conclude a technology loan agreement or receive a technology loan promise. If his application is approved, only the payment of the technological bonus will remain. It is paid either entirely once or in installments.
One of the requirements that must be met by an entrepreneur applying for a credit for technological innovations is having own contribution in the amount of min. 25% eligible investment costs. A very important point of the contract is also that the company must start selling the goods it has produced using the implemented technology.
Technological loan – what you need to remember
From the formal side, applying for a technology loan is not much different from applying for a standard loan in one of the commercial banks. The entrepreneur must have creditworthiness and a good credit history, he must also submit a set of documents, which will then be subjected to thorough analysis.
A loan for technological innovations is a product dedicated to a specific group of entrepreneurs. However, whether or not it will pay off depends on several factors: the technology currently used in the company, management plans and the products offered. From an economic point of view, the necessity to repay only part of the granted loan is extremely beneficial – a company without the involvement of its own resources can implement a technology that will be able to do even better on the market.