POLAND Law and Practice Contributed by: Wojciech Ługowski, Lawarton Lugowski Kapica Spolka Komandytowa
Commercial Lending (B2B) In contrast, commercial lending operates under a more flexible regulatory framework. Unlike consumer loans, B2B lending allows larger companies and lend - ers to negotiate terms more freely, as commercial enti - ties are generally expected to have more significant financial expertise and bargaining power. Despite this flexibility, lenders must still comply with applicable financial laws, particularly regarding contractual fair - ness, transparency and enforcement of obligations. Unlike consumer loans, commercial loans have fewer restrictions on collateral requirements, allowing lend - ers to secure financing through a broader range of assets. 4.2 Underwriting Processes The underwriting process varies based on loan type (consumer, SME or commercial) and follows regula - tory requirements. KYC Protocols The underwriting process typically begins with iden - tity verification and fraud prevention. Online lenders employ electronic identity verification systems, multi - factor authentication and KYC protocols to confirm a borrower’s identity. AML/CFT AML and CFT laws require robust monitoring and reporting mechanisms to detect suspicious financial activities. Creditworthiness Assessment Poland has a centralised credit system, including BIK (Credit Bureau) and BIGs (Economic Information Bureaus). BIK compiles credit data from financial insti - tutions, while BIGs track negative credit histories from utilities and telecom providers. Lenders rely on both sources to assess risk. Consumer Lending As outlined in 4.1 Differences in the Business or Reg - ulation of Fiat Currency Loans Provided to Different Entities , consumer lending is subject to stricter under - writing requirements. Lenders must provide detailed pre-contractual disclosures, ensure loan affordabil - ity assessments and comply with interest rate caps and fee limitations. These measures are designed to
protect individual borrowers from excessive debt bur - dens. Commercial Lending (B2B) For business loans, the underwriting process is more flexible and allows for negotiation of terms between the lender and borrower. While large enterprises may be assessed based on financial statements, cash flow projections and collateral, SMEs are often subject to hybrid models that blend consumer and business lending criteria. 4.3 Sources of Funds for Fiat Currency Loans Online lenders finance their loan portfolios through several key sources, including P2P lending, lender- raised capital, deposit-taking and securitisation. Each funding method has distinct legal and regulatory con - siderations shaping these entities’ operations. P2P Lending P2P lending platforms facilitate direct lending between individual investors and borrowers and are regulated under the European Crowdfunding Service Provid - ers Regulation (the “ECSP Regulation”). These plat - forms must comply with investor protection rules, risk transparency requirements and AML/CFT regulations. However, P2P lenders cannot accept deposits or offer deposit insurance, making it clear that risk disclosure is essential to maintaining investor confidence. Lender-Raised Capital Many online lenders finance their operations through venture capital, private equity or institutional fund - ing. Securities laws regulate this model, requiring full compliance with Polish and EU financial regulations, including disclosure obligations and transparency standards. If funds are raised through bond issuance or share offerings, additional capital market regula - tions apply, requiring oversight by financial regulators. Deposit-Taking Only licensed financial institutions, such as banks and certain regulated credit institutions, can legally accept deposits from the public. Deposit-taking lend - ers are subject to strict regulatory oversight, includ - ing compliance with capital adequacy requirements, consumer protection laws and deposit guarantee
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