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Financial planning

For a growth company, advance financial planning is also a tool for assessing risks.  When risks are measurable, they can also be managed better.

The amount of the required financing determines whether Finnvera can act as the only provider of funding or whether other sources and sufficient self-financing are also needed.

  • The company needs less than 35,000 euros
  • The company needs more than 35,000 euros

The company's financing requirements usually become clear as it updates its business and investment plans. My Enterprise Finland service provides an electronic tool for preparing and maintaining business and performance plans.   Business and performance plans must also be attached to the financing application submitted to Finnvera.

When planning for growth, you should also ensure the adequacy of cash assets.  A drop in liquidity can easily lead to problems in an SME even if the company would otherwise be on a profitable basis.  Read more about how to prepare case flow calculations at:

The company needs less than 50,000 euros

Finnvera can act as the sole source of financing for a company when the requirement is less than 50,000 euros.  For larger amounts, more providers of financing and sufficient self-financing are also needed.

The minimum amount of loan provided by Finnvera is 10,000 euros.

Bank loans and Finnvera guarantee

However, if you are seeking a loan from a bank and you do not have the collateral required by the bank, a partial guarantee provided by Finnvera may be the solution.  In projects of such scale, the guarantees provided by Finnvera can usually cover 50% of the loan.

The bank submits the application for the guarantees directly to Finnvera on your behalf.  The loan terms and repayment are in accordance with the loan agreement that you conclude with the bank.

The company needs more than 50,000 euros

If more than 50,000 euros is required, other providers of financing (usually a bank) and sufficient self-financing are also needed.  In company acquisitions, the seller may also provide some of the funding.

The external financing can be jointly provided by Finnvera and the bank as follows:

  • Finnvera and the bank each provide a loan.
  • The bank grants a loan that covers all financing needs and is provided with part-guarantees by Finnvera. If the Finnvera guarantees amount to a maximum of EUR 80,000 and 80 per cent of the loan, the bank can submit an application for the guarantees (Start Guarantee) directly to Finnvera on your behalf.

Finnvera's share of the financing

Finnvera's share of the financing (provided as a loan or loan guarantees) is on a case-by-case basis. Typically Finnvera's share will be 50 %. In projects involving growth companies and internationally oriented and innovative enterprises, Finnvera can temporarily act as the main provider of financing, supplying more than 50% of the loans and guarantees.

If case of a project requiring pre-delivery financing Finnvera's share of financing could be as high as 80 %.

Self-financing

The self-financing requirement depends on the content of the project.  In investments, Finnvera typically requires that 10–20 % of the funding is provided as self-financing, while in company acquisitions and generational transfers the requirement is 20 %.

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