Information about counter-cyclical financing

Owing to the global financial crisis, in March 2009 Finnvera was given permission to grant financing specifically for counter-cyclical purposes. This permission is valid until the end of 2011. The total sum of counter-cyclical financing that can be granted during the three-year period is 900 million euros.

Counter-cyclical financing to overcome difficulties

Counter-cyclical financing can be granted to an enterprise that has encountered financial difficulties because of the recession. A financing decision is preceded by a corporate analysis assessing the enterprise’s potential to survive the present difficulties. The main rule is that the combined financial performance for the two or three years preceding the financial crisis must be positive. For this reason, Finnvera needs the enterprise’s complete financial statements for making a decision on financing. The enterprise must also have a clear plan on how it intends to overcome the difficulties stemming from the recession. The more complete the enterprise’s application is, the more quickly it can be handled.

Finnvera’s counter-cyclical financing is intended for improving the enterprise’s financial situation during the recession. One prerequisite for the financing is, therefore, that the other principal financiers also reschedule their receivables for one year. This may mean, for example, a year of grace or additional financing from a bank. Negotiations with other financiers are needed before a financing decision is made.

The application submitted to Finnvera is not for any specific counter-cyclical financing as such; filling in a standard application form for financing is enough.

Information needed for application

Applying for Finnvera’s loans and guarantees always requires that the application contains all the essential information. A carefully completed application and detailed answers to the questions presented make it faster to process the application.

All questions on the application form must be answered.

Contents of the application

• Basic data on the enterprise, the entrepreneur and the owner of the enterprise
• Description of the business or a separate business plan
  (the enterprise’s main products and services and an estimate of their market situation and sales prospects, customers, and principal competitors)
• Description of the project to be financed
• Plan for the total funding of the project
• The enterprise’s profit plan for three years
• If the enterprise is already in existence, complete financial statements, including the appendices, for the past three years
• The Articles of Association or the Partnership Agreement (if available when the application is submitted)

Online application for Finnvera’s financing
Counter-cyclical loans
Counter-cyclical guarantees