Finnvera Guarantee is intended as security for various domestic financing needs, such as the
- product development
- investments in machinery, equipment and premises
- as security for financing the working capital required for the company´s business
- as security for production time finance in projects
- as security for seasonal financing
- as security for financing an acquisition or business deal
- security associated with domestic delivery contracts.
The Finnvera Guarantee can also be used for the increased working capital needs of small and medium-sized enterprises due to COVID-19 or the so-called coronavirus in cases where the Start Guarantee or SME Guarantee is not suitable in the company’s situation.
The Finnvera Guarantee can be used as a guarantee for loans or bank guarantees granted by the bank, financing company or insurance company in the following forms of financing, among other things:
- promissory note
- bank account with overdraft facility
- credit limit
- bank guarantee (delivery security, other security commitment)
- bank guarantee limit (delivery security)
- factoring financing.
Before taking a decision on your guarantee, Finnvera carries out a business analysis to establish whether your enterprise has the potential for profitable operations. The analysis assesses your targets, strategies, development plans and the market situation. A written business plan speeds up the handling of your application.
Terms and conditions of the Finnvera Guarantee
The provider of financing and Finnvera share the risk related to financing. Finnvera’s guarantee coverage is determined on a case-by-case basis, and it usually amounts to 50–80% of the amount of loan or other financing commitment.
Finnvera guarantees can be granted for business operations in nearly all sectors, with the exception of farming, forestry and property development in the construction sector. It is a suitable option for SMEs and, on special grounds, for companies larger than an SME, too. We follow the EU sector limitations on state subsidy in the allocation of our financing services.
The Finnvera Guarantee is intended especially for small and medium-sized enterprises that
- employ fewer than 250 employees
- have a turnover not exceeding 50 million euro or a balance-sheet total not exceeding 43 million euro.
Furthermor, the holdings in the enterprise and its holdings in other enterprises may contribute to the fact that the enterprise is not an SME.
The guarantee period is negotiated case by case. The counter-security is negotiated case by case together with the enterprise and the financier.
The price of the Finnvera Guarantee
The guarantee-holder is required to pay an annual guarantee commission that depends on the profitability of the client company, the operating risk, the enterprise’s counter-security and the guarantee period. The guarantee is subject to a service fee.