Help from the tax office
The first quarter is often a financial challenge for the self-employed and freelancers in Austria - especially due to ongoing tax prepayments. Anyone who has neglected to apply to the tax office in December for a reduction in income or corporation tax prepayments can quickly find themselves in liquidity bottlenecks in the spring.
This is because the state demands an advance payment- similar to energy suppliers - before the actual tax burden is even known. Income tax, corporation tax or even the chamber levy are demanded in the form of advance payments. The final tax assessment is then only made in the course of the tax assessment - sometimes up to two years later.
What's more, the tax office usually bases its calculation of advance payments on the most recently declared company profit. However, this does not always correspond to the current business situation. Particularly in seasonal industries such as construction or gastronomy, there is often a slump in orders at the beginning of the year - this is when advance payments have a particularly strong impact.
Creating liquidity for tax prepayments
In extreme cases, tax payments for two and a half years are due at once, for example a large tax back payment for 2015, a retrospective advance payment for 2016 and a current advance payment for 2017. In practice, good years are often better remembered - the advance payments based on these profits are then due in economically weaker phases of all times. And then you have to scrape together the last of your liquid assets to pay the tax office.
In case of doubt, the bank will then no longer give anything. And certainly not in the short term. In times when orders are weak, there is the option of converting vehicles that are part of the company's assets into liquidity.
Pfando's cash & Drive GmbH offers you car pawn loans with which companies can achieve more liquidity at short notice and thus bridge their financing bottlenecks. Unlike traditional pawnbroking, where the vehicle is parked somewhere or mothballed, companies have the advantage here that they can continue to use the vehicles.
Creating liquidity despite restrictive lending
Despite historically low interest rates, banks are often reluctant to respond to financing requests from the self-employed and small businesses. A banking expert explains the reasons behind this:
The banking crisis of recent years has cast a long shadow. The banks have had to tighten the reins, partly due to the legal framework. As a result, lending to smaller SMEs in particular has become more restrictive ...
On the other hand, the strict equity and lending rules under Basel III, as implemented in the Austrian Banking Act (BWG), require banks to demand considerable collateral from their customers. This means that banks must pay more attention to the creditworthiness of their customers. This is done, among other things, by means of a sophisticated scoring system into which a vast amount of data flows. This includes all points that can be used to assess a customer's creditworthiness, such as average payment terms, the company's sales performance, employee numbers and many other parameters - including regional risk profiles, as assessed by credit agencies.
Access to credit
Even if the major trade associations repeatedly emphasize that there is no credit crunch, the reality is different, especially for small businesses and the self-employed. Despite a good order situation, the downward financing spiral can lead to existential crises and is causing problems for many of them.
The lack of liquidity means that orders cannot be executed because, for example, the necessary materials cannot be procured. As these companies have hardly any real estate assets that can be used as collateral, good advice is required.
Alternative financing
Taking a car to a pawnshop to create short-term liquidity is seen by many as a last resort - not least because it is generally no longer possible to use the loaned vehicle in conventional pawnshops. This can deprive a company of its mobile working basis. Pfando's cash & drive GmbH is different. The company, with its 5 locations in Austria, makes it possible for the entrepreneur to keep his vehicle and thus maintain operations.
A professional motor vehicle expert then assesses the value of the vehicle and the amount determined is paid out within a very short time if the corresponding vehicle inspection was successful.
Receive cash within 60 minutes and continue driving your car
- Immediate cash (today)
- TÜV certified
- Highest payout amounts
- The credit alternative –
even with a negative credit bureau entry - 60+ locations in Europe
- Trained customer advisors
- On site and always available for you by phone
- Verified contracts
With a deposit credit from Pfando, you can get cash within 60 minutes!
Pfando offers you a much more advantageous, above all unbureaucratic and fast alternative to a bank loan without proof of income or the usual pawn loan: If you own a vehicle, you can easily obtain a pawn loan as cash for your car, truck, van or tractor thanks to Pfando and continue to use the vehicle directly - even without a current income. What's more, there is no KSV, no traditional credit check and no time-consuming loan application!
With our Cash & Drive principle, only the value of your vehicle is decisive - you do not have to provide any collateral such as proof of income or other income. Even your creditworthiness or your KSV score are not relevant for us.
If you have a vehicle that is your property and is also insured and registered, simply make an appointment at one of our 5 branches throughout Austria. Come in and receive cash immediately (upon successful inspection and conclusion of the loan agreement) - with the option to continue driving!
The Pfando principle explained in brief
BECOME LIQUID WITH PFANDO!
Private customers
We at Pfando offer private individuals with an acute need for money an individual and flexible solution. We know that the reasons for a liquidity bottleneck can be varied. For example, have you lost a legal dispute or have other private debts? Is there an accident-related payment default in the case of self-employment or is a tax refund due?
Do you have a payment default in your company and want to secure continued payment of wages?
Business customers
Even a short-term inability to pay can mean the end for a company under certain circumstances: Many tradespeople find themselves in payment difficulties due to an unexpectedly high tax prepayment, for example, especially when switching to prepayment after several financial years. If it is not possible to continue paying wages for several months, you may lose employees and recovery from the liquidity problem becomes increasingly unlikely. In such cases, we at Pfando's cash & drive GmbH help tradespeople to quickly restore liquidity and secure continued payment of wages.
What our customers say
Everything was very relaxed. The advisor was very friendly, competent and courteous. After we had clarified all the formalities, the check arrived within the next 30 minutes. [...]
After the application was processed very quickly, I had the money in my account less than 3 minutes later. And I was rid of my worries. [...] The best thing is that I can continue to drive my car.
I have been a Pfando customer for a long time and have used their services several times at certain intervals. The good thing about Pfando is the fast and uncomplicated processing to get money quickly at short notice.
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