Cooperation in domestic financing
Finnvera is a complementary financing provider
Finnvera provides its financing primarily in the form of guarantees, which is why enterprises should first consult their usual financing partners about their financing needs. Finnvera also grants guarantees that can be used as financing collateral. The granting of a guarantee requires that the financing partner has been approved by Finnvera.
Guarantee partners in domestic financing
Finnvera can also share the risk with other financing partners by granting a direct loan as part of its total financing. The granting of a direct loan together with other financing partners does not require a separate cooperation agreement between the financing partners and Finnvera.
Approving a new financing partner as a guarantee beneficiary
The start of the guarantee cooperation is preceded by a process where the beneficiary partner is assessed, approved, and onboarded. Sufficient time should be reserved for this process, i.e. around 6–12 months. The commencement of the guarantee cooperation requires the deployment of electronic services and the signing of the relevant cooperation agreements.
The assessment process focuses on various factors, such as the financing partner’s processes, risk management, systems, readiness to conduct matters with Finnvera through electronic channels, and cooperative effectiveness.
Finnvera also assesses cooperative effectiveness, especially from the viewpoint of financed enterprises
Finnvera’s operations are backed up by the State of Finland, which allows Finnvera to take higher risks than private financing providers and, within the framework of state aid regulation, offer lower pricing. As Finnvera is subject to state aid regulation, it is required to pass on any support received from the state to the enterprises it finances. When Finnvera grants a guarantee for financing issued by a commercial financing partner, the benefit of the guarantee must be passed on to the end customer. As a rule, state aid regulation also prohibits the provision of support to banks (= operating aid in violation of regulation).
Initiation of guarantee cooperation
The agreements required for cooperation have been signed
The requisite cooperation and service agreements related to Finnvera’s guarantees have been signed.
Finnvera gives the beneficiary access to online services
Finnvera gives the beneficiary access to its online services and Rahoittajat Extra service, checks that the connections work, and provides training for online service system administrators.
Training is provided on Finnvera’s operations
Training is provided for the new beneficiary’s contact persons and officials who handle financing to introduce them to Finnvera’s operation, role, guarantee products and guarantee process as well as submission of applications, other use of the online service and use of the Rahoittajat Extra service.
Finnvera guarantees are launched
The first product introduced with a new beneficiary is Finnvera promissory note guarantees. Based on experiences associated with them the cooperation can, if necessary, also be extended to Finnvera's other guarantee products and standardised Start Guarantees and SME Guarantees, for which specific agreements are required. The guarantee cooperation may also be suspended.
Finnvera monitors the cooperation
Finnvera meets regularly with the contact persons of banks and other beneficiary partners to discuss topics that include realised cooperation, the shares of different bank groups and other financing providers in the guarantees, and plans for future cooperation.
