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Internationalisation Loan

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Internationalisation Loan

The Internationalisation Loan is intended for financing a Finnish SME’s operations abroad.

The financing may target, for instance, investments, development or financing for growth for a Finnish SME’s subsidiary, associated company or branch office that has been, or is planned to be, established abroad. Other targets of financing may include the acquisition or increase of holdings or the increase of the share capital in a subsidiary or joint venture abroad. After the investment, the recipient of financing should hold a minimum of 1/5 of the votes of the foreign associated company. The internationalisation project should considerably promote the operations of the company in Finland. 

Before a loan or guarantee decision is made, Finnvera carries out a business analysis to find out how the project in question will affect the company in Finland and its job creation potential, and to chart the company’s capabilities and other potential for profitable business operations and internationalisation. The risks related to the target country and cooperation partners, and steps taken to prepare for them, are also investigated.

Terms and conditions of the Internationalisation Loan

Funding is granted to SMEs operating in Finland, and the project in question must promote the enterprise’s operations. With certain limitations financing can also be granted for larger companies.

The operations of the foreign subsidiary or associated company being financed should primarily comprise production, assembly, maintenance or services. Financing cannot directly target export financing, in other words, it cannot be used solely for establishing a sales office.

Internationalisation Loan can be applied for by companies with fewer than 250 employees and the annual turnover no more than EUR 50 million or the balance sheet total of EUR 43 million, at a maximum. In addition, the company's ownership and holdings in other companies may influence whether the company is an SME.

When granting financing, attention is paid to the business analysis as well as the country risk and operating environment of the country where the project is located. The subsidiary or affiliated company granted this financing may be located in a country whose country category, in accordance with Finnvera’s country classification, is not lower than 4 (”decreased credit guality”). Finnvera’s share of the total funding in an internationalisation project is negotiated separately in each case.

Click the link for country categories of different countries. When planning to establish a company, we recommend that you contact the regional manager for the country in question.

Loan or guarantee period is in general, at most 10 years. The first two years may be amortization-free. Security will be negotiated separetely in each case.

The price of the Internationalisation Loan

The interest rate is the 6-month Euribor and a margin that depends on the profitability of the client company, the operating risk associated with the business, the credit period, the target country and any security that may be lodged.

The guarantee-holder is required to pay an annual guarantee commission that depends on the profitability of the client company, the operating risk associated with the business, the guarantee period, the target country and any counter-security that may be lodged. A handling fee is charged on each loan or guarantee.

Applying for the Internationalisation Loan

Finnvera's online service provides a secure and easy way for submitting financing applications. You can log in to the online service with your personal online banking credentials or mobile certificate.

If you wish, you can prepare a business plan and a performance plan in the Oma Yritys-Suomi service.

The financing applicant who authenticates themselves in our online service must be a person in charge at their 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.

Read more about applying for financing