Applying for financing for growth

Table of content

Applying for an SME Guarantee

It's often most convenient for a growth company to apply for financing from a bank. However, if you are seeking a loan from a bank but do not have the collateral required by the bank, an SME Guarantee provided by Finnvera may be the solution.

The bank submits the application for the guarantee directly to Finnvera on your behalf. You or your company don’t need to be in direct contact with Finnvera.

Read more: SME Guarantee

Applying for other financing

If SME Guarantee is not applicable for you financing need, other guarantees by Finnvera can be applied for easily and securely through our Online Service. You can log in to the online service with your personal online banking credentials or mobile certificate.

You can apply for financing already before you have set up your company.  However, you can only access the financing granted by Finnvera when your company is in existence and has a business identity code.

The financing applicant who authenticates oneself in our online service must be a person in charge at the company and have the authority to sign on behalf of the company, or be the owner of a company being established. The company’s contact person named in the financing application can be any of the aforementioned or a company employee who has been given a power of attorney.

How is the company assessed?

If your bank files an application for a SME Guarantee on your behalf, our financing decision is based on the bank's assessment of your business's operating potential and creditworthiness.

When using other financing solutions Finnvera will examine your company's ability to engage in profitable business and put its plan into effect.

Finnvera assesses the company's aims, development plans, outlook and competitive position. The adequacy of the overall funding and self-financing is also examined.  The entrepreneur must also have good financial standing.

Role of collateral

When using an SME Guarantee no collateral is required by Finnvera.

When using other financing solutions, collateral plays a role even though our funding decisions are based on an assessment of the companies' prospects. The need for collateral is examined on a case-by-case basis.

Finnvera primarily requires that the principal shareholders in a limited liability company make an investment in the company's equity. If this is not possible a personal guarantee will be required. The size of the investment or guarantee should be 25 % of the liability yet at least 3 000 e and at most 20 000 e. Sole proprietors and general partners in general partnerships and limited partnerships are also otherwise personally liable for the loans of their enterprises.

Business mortgages or real property mortgages are often used as collateral in projects requiring more substantial financing. However, Finnvera does not use the apartment owned and used by the entrepreneur as collateral.

Information required for the application

SME Guarantee applications are handled based on the information provided by the applicant's bank.

If you apply for our other financing solutions through the Online Service, following information on the company, the entrepreneur and the project is required:

  • basic details of the company, the entrepreneur and the owner
  • project description
  • overall project financing plan

The company's business and performance plans for the next three years must also be provided. This information must be provided on a separate attachment or it can be entered on the application's interleaves.

An active company must also submit the financial statements for the previous three financial years and, for the current financial year, the latest available figures. In company acquisitions, the financial statements of the company to be acquired for the previous three financial years and its articles of association or memorandum of association (if available) must also be attached to the application.

You may also enclose other attachments to the application that you consider important for its processing. When planning for growth, you should give consideration to such issues as the adequacy of cash assets, which can be ensured by means of cash flow calculations. Read more about preparing cash flow calculations at

Financing decision

SME Guarantee

We will normally process the SME Guarantee applications filed by the bank within three working days. Then we will inform the bank of our financing decision. The loan and repayment terms are in accordance with the loan agreement concluded with the bank.

Other financing solutions

If you apply for our other financing solutions through the Online Service, we will call you within a week after we have received your application. Decisions concerning small projects will be made in about two weeks.  In projects with more substantial financing requirements we aim to make the decision within the time limits set by your customer's project.

Favourable decision

If Finnvera accepts you application we will give you a financing offer. If you decide to accept the offer, contact the person whose name appears on the offer and make arrangements for accepting the loan or having the guarantee take affect.

After the conditions in the financing offer have been met and the documents have been signed, the loan can be paid to the account you have given us or the guarantee be given for a loan from another offerer of financing.

Negative decision

If Finnvera rejects your application, you will receive a written notification giving the grounds for the rejection.  If necessary, you can go through the decision in more detail with a Finnvera representative by telephone.

The most common reasons for rejecting a loan application:

  • Finnvera is of the view that your company will not be able to engage in profitable business.
  • Your company's financial situation is too challenging for an external provider of funding. 
  • Because of legal provisions, Finnvera is unable to provide financing for the sector in which your company operates.
  • There is overcapacity and tough competition in the sector.
  • Self-financing arrangements are insufficient.
  • You have tax debts or are in default on your payments.

Despite a negative decision on a loan application, Finnvera may still be able to provide part-guarantees for a bank loan, which may be of crucial help in the getting of the loan. 

With all inquiries regarding applications please contact our telephone service at 029 460 2580.