Finnvera’s guarantees help enterprises in their minor financing needs
Our micro-financing products, the Start Guarantee and the SME Guarantee, help SMEs receive bank financing for minor investment, working capital and product development needs. In these situations, the enterprise should always first turn to their bank or another provider of financing. The bank applies for a Start Guarantee or an SME Guarantee from Finnvera on behalf of the client enterprise. If financing needs are larger or if these guarantee products are otherwise unsuitable for financing the project, the enterprise may apply for a Finnvera Guarantee or a Finnvera Loan directly from Finnvera. As of 2 January 2020, Finnvera’s minimum loan amount will be EUR 50,000.
The primary product for the financing of a start-up is the Start Guarantee. For a growth-oriented enterprise that has been operating for more than three years, the most convenient micro-financing option is the SME Guarantee. The bank or another provider of financing that grants the loan applies for these guarantees from Finnvera on your behalf. If the Start Guarantee or the SME Guarantee is not suitable for financing your project, you can apply for a Finnvera Guarantee or a Finnvera Loan directly from Finnvera. The minimum guarantee amount is EUR 10,000.
For the client, applying for guarantees is easy and quick. In case of a Start Guarantee or an SME Guarantee, the bank applies for the guarantee on your behalf and Finnvera’s guarantee decision may be received even in one day.
An enterprise or an entrepreneur should apply for financing primarily through a bank or another provider of financing. When the bank is involved in the enterprise’s financing from the early days, the enterprise also has better chances for receiving further financing later when the enterprise grows. Finnvera’s guarantees help enterprises receive financing if the enterprise cannot offer the collateral required by the provider of financing.
For instance, with an unsecured SME Guarantee, a growth-oriented enterprise may receive up to EUR 150,000 in bank loan if the financing criteria are met.
Loan can be applied for in financing needs amounting to a minimum of EUR 50,000
An enterprise can apply for a loan from Finnvera for working capital and investment needs when at least EUR 50,000 is needed. In this case, too, the primary form of financing is the Finnvera Guarantee. The Start Guarantee and the SME Guarantee are more efficient options for smaller financing needs.
Finnvera has been assigned the task of complementing the financial market and commercial providers of financing. There is a wide range of financing and new kinds of providers of financing available. Consequently, our primary micro-financing mechanism is to grant guarantees.
It should be noted that the increase in the minimum loan amount applies to loans granted to an enterprise, not Finnvera’s entrepreneur loan, which is an entrepreneur’s personal loan for financing a transfer of ownership or an increase in share capital, for instance.