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Start Guarantee

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Start Guarantee

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. Finnvera’s Start Guarantee can be used for working capital needs caused by the coronavirus as well by companies which have been operating for maximum three years.

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. Start Guarantee can be granted for Finnish companies or registered private entrepreneurs but not for cooperatives or registered associations.

The Start Guarantee can be used for working capital needs caused by the coronavirus as well by companies which have been operating for a maximum of three years.

Terms and conditions of the Start Guarantee

Start Guarantee can be granted for Finnish companies or registered private entrepreneurs but not for 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 of financing cannot be shared on two Start Guarantee applications. If the financing need is larger, the company should apply for Finnvera Guarantee through Finnvera's e-service after 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

Security

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.

Restrictions

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. Start Guarantee cannot be used for financing company acquisitions, acquisitions of company's own shares or purchases of business premises or cars. Moreover, Start Guarantee cannot be used for export financing.

The State aid rules of the EU (the Start Guarantee includes de minimis aid) restrict the use of Start Guarantees for financing the acquisition of transport vehicles and equipment when the enterprise engages  in freight transport on behalf of third parties.

De minimis aid contained in Finnvera’s Start Guarantee may prevent the client from receiving other public support/aid. 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 0,1% of the guarantee amount.

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 of 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.