Finnvera offers SMEs state-guaranteed loans and financial support for growth, investment and internationalisation. The funding is particularly useful for companies that lack sufficient collateral for a traditional bank loan. Finnvera’s loans and guarantees help companies expand their business and move into new markets on flexible terms that reduce risk.
Who can apply?
Finnvera mainly finances SMEs, meaning companies with fewer than 250 employees and a turnover of no more than €50 million or a balance sheet total of no more than €43 million. Some forms of funding also suit larger companies under certain conditions, and an entrepreneur can apply for the entrepreneur loan personally to buy shares in a limited company. The conditions vary by product. For example, the SME guarantee is for companies first entered in the Trade Register more than three years ago, and the loan for microenterprise growth is for companies with fewer than 10 employees that have not obtained financing from a bank.
How much funding is available?
- SME guarantee: €10,000–200,000, up to 80% of the bank loan.
- Loan for microenterprise growth: €20,000–50,000.
- Finnvera loan: at least €50,000.
- Climate and environmental loan, and digitalisation and innovation loan: €150,000–2,000,000 per project.
- Growth loan: usually at least €500,000.
Finnvera lends only as part of an agreed financing package that also involves a bank or another financier.
When to apply?
Finnvera’s loans and guarantees have no call rounds like grants do: you apply when the need arises. Start with your own bank: for the SME guarantee, the bank first makes its own credit decision and then applies for the guarantee on your behalf. Other financing, such as the loan for microenterprise growth, you apply for yourself in Finnvera’s online service. Applications for the microenterprise growth loan are handled in order of arrival, and Finnvera aims to make contact within about two weeks.
What is Finnvera?
Finnvera is a financing company owned by the Finnish state that offers SMEs loans and guarantees for business development, investment and internationalisation. Finnvera’s loans are particularly suited to companies that need funding for, for example, expanding production, entering new markets or digitalising their business.
Finnvera’s loans and guarantees are especially useful for companies that lack sufficient collateral for a traditional bank loan. Funding is granted on the basis of the business plan and growth potential, which makes it an excellent option for companies that want to invest in the future and grow their operations.
Funding is available for purposes such as buying new equipment, market research, product development or expanding the business. Finnvera’s funding is especially useful for companies in a growth phase that need flexible financing while keeping risk under control.
Finnvera’s loans for companies
Finnvera offers SMEs a range of loans that support business growth, investment and internationalisation. The loans are tailored to the company’s needs and come with flexible terms. The state guarantee reduces the risks of the financing and makes cheaper loan terms possible.
Entrepreneur loan: Supports a founder in acquiring shares in a limited company and strengthening its equity. The loan can also be granted to several shareholders in the same company if it supports business growth. Loan amount from €20,000.
Finnvera loan: Support for SME investment and business development. The loan is granted particularly to companies that need funding for production, energy or environmental projects and other development investments. Loan amount from €50,000.
Growth loan: Support for significant expansion and internationalisation. The growth loan is aimed at companies that want to expand their operations significantly, especially to finance large investments and internationalisation. Loan amount from €500,000.
Climate and environmental loan: Supports companies investing in environmental protection, energy efficiency and sustainability projects, such as renewable energy projects. Loan amount from €150,000.
Digitalisation and innovation loan: Specifically for developing digital solutions and innovations. The loan is granted to companies that develop digital services or invest in new technology. Loan amount from €150,000.
How does Finnvera’s funding differ from a traditional bank loan?
Finnvera’s funding differs from bank loans mainly because of the state guarantee and more flexible terms. Bank loans often require sufficient collateral, but Finnvera grants funding on the basis of the business plan and growth potential. This opens up opportunities for companies that lack sufficient collateral. Finnvera’s financing solutions offer lower interest rates and more flexible repayment terms, which makes them an attractive option for growing companies.
- State guarantee: In a Finnvera loan, the state guarantee reduces risk and makes cheaper loan terms possible.
- Flexible terms: Finnvera offers more flexibility in repayment terms and lower interest rates than traditional bank loans.
- Collateral: Funding can be granted even without sufficient collateral, provided the business plan and growth potential are in order.
- Lower risk: Finnvera’s support makes it possible to obtain a loan even when traditional collateral is not enough.
- Focus of the funding criteria: Finnvera assesses the company’s business plan and future outlook when granting funding, while banks focus more on the company’s current situation and collateral.
Examples of Finnvera’s financing solutions
Finnvera offers SMEs a range of financing solutions that support growth, investment and internationalisation. Funding can be applied for in different business situations, and Finnvera’s loans are tailored to the company’s needs.
Loans and guarantees: Finnvera grants loans and provides guarantees that make it easier to obtain funding, especially for investment and development projects. Guarantees are particularly useful for companies that lack sufficient collateral to obtain traditional bank loans. Finnvera can act as guarantor, which reduces the bank’s risk and makes cheaper loan terms possible.
Example: An online retailer that wants to invest in new software and equipment but does not have enough collateral for a bank loan can apply for funding with a Finnvera guarantee. The guarantee gives the bank the certainty it needs, so the loan can be granted without large traditional collateral. This makes the investments and business growth possible.
Capital loans: Capital loans support growth and investment without giving up ownership. This form of funding is particularly suitable for companies that need support for expansion, internationalisation or major investments but do not want to share their equity with outside investors.
Example: A technology company that wants to expand into international markets but does not want to sell shares to new investors can apply for a capital loan. The loan can be used, for example, to develop a new product or to support an internationalisation strategy.
Public funding and grants: other options
Funding can also be applied for as government grants, which do not have to be repaid. The grants are intended particularly for companies that are developing new innovative solutions, planning to internationalise, exploring new markets or need investment support. Public funding is aimed at projects in which the business is developed and grows through new products, services or business models.
In traditional sectors such as hairdressing and restaurants, a state-guaranteed Finnvera loan may be the only funding option, especially in the early stages of the business. In that case the loan provides flexible financing and allows the company to grow without large initial investments.
Read more about the support options from Business Finland and Elinvoimakeskus, which can cover as much as 50–75% of a project’s total costs. We help with conceptualising your business and at every stage of the application process, and we find the forms of support that suit your company.
We help companies navigate Finnvera’s funding process by providing expert advice and preparing applications. We have extensive experience of Finnvera funding across different sectors, and we help companies secure the best possible terms for their funding. Contact our experts here .
