Working Capital Loan Secured by an InvestEU Guarantee with an Associated Factoring Limit

The Working Capital Loan Secured by an InvestEU Guarantee with an Associated Factoring Limit is a comprehensive financial instrument tailored specifically for small and medium-sized enterprises (SMEs). This facility integrates long-term working capital financing with the monetisation of accounts receivable, thereby establishing stable conditions for the conduct of business operations.

The loan facility is backed by an InvestEU guarantee, which secures up to 80% of its total value. Consequently, the threshold for required physical collateral is substantially mitigated, and access to financing is facilitated. Concurrently, the factoring component enables the rapid conversion of outstanding receivables into liquid funds, thereby optimising current cash flows. The factoring services within this framework are provided by KUKE Finance.

Core Strategic Advantages

• The simultaneous deployment of a working capital loan and a factoring facility strengthens financial liquidity over both short-term and long-term horizons.
• Working capital financing extended for a term of up to five years ensures robust financial predictability and provides the operational latitude necessary for strategic expansion planning.
• The InvestEU guarantee covers up to 80% of the financing value, with the associated costs fully absorbed by the Industrial Development Agency (ARP).
• Invoices are converted into liquid funds with high velocity, allowing the enterprise to receive up to 90% of the face value of the invoice within a maximum threshold of two business days.
• The structure allows for the outsourcing of receivables management and, in the case of non-recourse (full) factoring, the complete transfer of debtor insolvency risk to the factor.

Eligibility Criteria

This facility is structured exclusively for enterprises within the SME sector operating across the territory of the Republic of Poland that satisfy the following cumulative criteria: a minimum operational history of 24 months on the market; annual revenues exceeding PLN 4 million; the maintenance of full statutory accounting records; and the demonstrated capacity for the punctual service of debt obligations.