Start Guarantee as collateral for corporate credit
Finnvera’s Start Guarantee helps new SMEs to obtain bank financing for various investment and working capital needs.
Your bank files an application on your behalf.
The Start Guarantee is intended for newly launched enterprises that are owned by private individuals and meet the SME definition applied by the EU. Another criterion is that no more than three years has passed since their entry into the Trade Register. The Start Guarantee can be granted to Finnish companies or registered private entrepreneurs but not for cooperatives or registered associations.
Terms and conditions of the Start Guarantee
The Start Guarantee can be granted to Finnish companies or registered private entrepreneurs but not to cooperatives. A prerequisite for a Start Guarantee is that the enterprise and the persons liable for the enterprise have a good credit record.
The minimum amount for a Start Guarantee is EUR 10,000.
Finnvera’s guarantee coverage can be at most 80%. The maximum amount of a single Start Guarantee granted for a company's single project at one time is EUR 80,000. For larger projects, the need for financing cannot be shared on two Start Guarantee applications. If the financing need is larger, the company should apply for a Finnvera Guarantee through Finnvera's online service after a discussing with the bank.
A new Start Guarantee may be granted at least two months after the previous Start Guarantee decision. The total sum of Start Guarantees granted to one enterprise may be up to EUR 160,000.
Finnvera does not require a self-financing contribution.
The precondition of the guarantee is that the credit rating of the company and its responsible persons is in order. The responsible person's business relations must not have a bankruptcy entry or a partnership with defaults.
Loan to be guaranteed
Promissory note credits
The special guarantee undertaking lodged by the principal shareholders must cover 25% of Finnvera’s guarantee sum. The minimum amount of the guarantee undertaking is EUR 3,000.
We provide financing for enterprises operating in almost every sector; only farming, forestry and the building developer’s business remain outside our range of financing. The Start Guarantee cannot be used for financing company acquisitions, acquisitions of a company's own shares or purchases of business premises or cars. Moreover, the Start Guarantee cannot be used for export financing.
De minimis aid contained in Finnvera’s Start Guarantee may prevent the client from receiving other public support/aid. Alternatively, the Start Guarantee may be priced out of subsidy. The provider of financing must report other aid or support granted at the same time in the Start Guarantee application. If this aid or support is not reported and the project contains other public aid or support in addition to the guarantee, other aid/support may be rejected from the client in connection with payment. Aid and support are granted by Centres for Economic Development, Transport and the Environment, Business Finland and municipalities, for instance.
The price of the Start Guarantee
The guarantee commission is charged at a 3-month interval and it is 1.75% p.a. of the guarantee balance reported by the bank. The service fee is 1,0 % of the guarantee amount, minimum EUR 150.
The agreement encompasses all branches of Aktia Bank plc, Danske Bank A/S, Finland Branch, Fennia Mutual Insurance Company, Nordea Bank Abp, Oma Savings Bank plc, OP Financial Group (OP-Services Ltd), POP Pankkiliitto osk, Svenska Handelsbanken AB (publ), Branch Operation in Finland and Savings Banks' Union Coop.
Applying for the Start Guarantee
Your bank files an application on your behalf. Finnvera makes an independent decision based on the bank's application and Finnvera's own overall assessment. You or your company don’t need to be in direct contact with Finnvera.