Short-term liquidity for entrepreneurs – Bridging financial bottlenecks

Table of contents

Late payment & payment default by customers

An unforeseen payment bottleneck can always occur. For example, if a customer does not pay on time, you may find yourself in the predicament of not being able to make your payments as planned. If a customer defaults or is late in paying, you need to find short-term interim financing quickly. In addition to bridging loans from banks, Pfando's collateral loan with the option to continue is a good financing option that makes you solvent again as an entrepreneur without sacrificing flexibility. Find out what you can do in such a situation in our article on late payment or payment default!

Bridge late payments!

Mail from the tax office: tax arrears or tax prepayment

The most common cases that can cause companies to run into financial difficulties include back tax payments and tax prepayments. On the one hand, it becomes critical if the switch is made from back payments to advance payments in the third financial year and no reserves are available.Income tax,corporation tax and VAT can also be demanded in addition if more profit was recorded in the previous year than in the year before - in itself this is a good company development, but the higher tax amounts must also be taken into account in the process.

In our separate article, we show you how you can use Pfando's Cash & Drive concept to quickly close a financing gap in the event of tax arrears or advance tax payments.

Finance back taxes!

Quick and uncomplicated back payment of VAT

Back VAT payments can become a financial burden for small businesses in particular - for example, if they exceed the turnover threshold of EUR 55,000 due to good business performance. Up to this limit, an exemption from VAT liability applies in accordance with § 6 Para. 1 Z 27 UStG. However, if no provision is made for the event of a later tax liability, the sudden change to standard taxation can quickly become a challenge - even if the company is doing well economically.

Another frequent case concerns companies whose declared sales exceed the sales reported in advance. If this excess amount is not reported on time in a corrected advance VAT return (UVA), the tax office makes additional claims as part of the annual VAT return.

Find out in our further article how you can manage a VAT back payment even without reserves.

Finance back VAT payments!

Proof of liquidity & proof of equity for better chances of obtaining a loan

If you would like to apply for a loan from a bank or other financial service provider, your chances of success increase considerably if you have a high equity ratio. This is considered a sign of financial stability and is viewed positively by lenders.

In order to increase your equity ratio and at the same time provide solid proof of liquidity, it can be worthwhile using Pfando's Cash & Drive model . If you have one or more vehicles in your possession, you can easily turn them into immediately available liquidity - and still continue to use them.

You can, for example, contribute the amount you receive via Pfando to your business or equity reserves - and thus strengthen your credit rating with banks.

We present further options for improving your proof of equity through targeted liquidity management in a separate technical article.

Create proof of liquidity & proof of equity!

The pawn loan with the option to continue driving: the alternative to a bridging loan

To bridge a temporary financial bottleneck, loans for financing are a frequently chosen option. However, these are usually accompanied by a number of formalities, for example a KSV query or credit check, as well as the necessary submission of your proof of income or collateral. To save yourself the bureaucratic effort or if you have been refused a loan, Pfando's pawn loan with the option to continue is ideal. All you need is your own vehicle (or several) that is registered and insured. With us, you can receive cash immediately (after a successful check and conclusion of the pawn loan contract) and continue to use the vehicle!

In our article on the subject, we explain the advantages of a pawn loan with the option to continue driving compared to a conventional bridging loan!

The simple alternative to a bridging loan!

Creating liquidity - quickly and without bureaucratic effort

As an entrepreneur, you can create liquidity in various ways to make your own company solvent again and thus capable of acting. This is possible, for example, by increasing equity if shareholders are involved in your company. Tight receivables management is also an essential part of keeping an eye on incoming payments and ensuring that your invoices are paid on time. A loan is also an option, but you will have to reckon with a few hurdles that are often too high and unnecessary in the event of short-term insolvency.

An excellent alternative to this is Pfando's pawn loan with the option to continue driving, which allows you to receive cash quickly and continue using your vehicle. Read more about the alternative to bank loans that creates liquidity here!

Improve liquidity!

Financing with a pawn loan: everything you need to know

Pfando's pawn loan with the option to continue driving provides you with quick and uncomplicated liquidity. As an entrepreneur, you can bring your company car, truck, van, agricultural machine or other vehicle to Pfando, provided that you are the owner. After a successful inspection and conclusion of a contract for a pawn loan, you will receive the agreed amount directly.

The best thing is that you can continue to drive the vehicle straight away and don't have to hand it in and pay storage fees as you would at a normal pawnbroker's. Read our article to find out what advantages the Pfandopawn loan with onward transportation option offers you as an entrepreneur and what you need to bear in mind!

We will be happy to answer any questions you may have - just give us a call and make an appointment at your Pfando branch!

The sale and lease back principle!