Financing for starting a business

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1 Financing for starting a business

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3 Financing from Finnvera for launching a business Are you planning to set up an enterprise? A good business idea, the readiness to work as an entrepreneur, and careful planning help in starting and running a business. They also help in arranging funding. The State-owned specialised financing company Finnvera can provide financing for an enterprise s initial acquisitions, working capital needs and investments. Finnvera can finance all sectors except a building developer s business and primary production in agriculture and forestry. A wide range of financing options In most cases, a start-up enterprise needs external funding to launch its business. Finnvera provides enterprises with financing for starting and developing their business. Finnvera s loans and guarantees can be used to finance an enterprise s investments in machinery and

4 Finnvera can provide financing for an enterprise s initial acquisitions, working capital needs and investments. equipment, working capital or other projects for commencing or expanding operations. An enterprise can also apply for financing from banks. If the enterprise lacks sufficient collateral for a bank loan, the bank may apply for a guarantee from Finnvera to cover part of the loan. Finnvera can be the enterprise s sole financier when the need for financing does not exceed 35,000 euros. If the need for financing is greater, we require adequate proportion of internal financing and cooperation with a bank or another provider of financing. Entrepreneurs may also apply for a personal loan from Finnvera, for instance to supplement the equity of a limited liability company. How is your company assessed? Before the financing decision, Finnvera analyses the enterprise s potential for profitable business and for implementing its plans. We assess the enterprise s goals, development plans and market situation, the local competition, as well as the total financing required by the business and the extent of the enterprise s own funds. The entrepreneur s personal finances must also be in order.

5 When providing financing for start-up enterprises, Finnvera cooperates with regional enterprise services and Enterprise Agencies. They can give an opinion as to whether they consider the starting enterprise s project to be eligible for financing. This opinion is then used by Finnvera in its decision-making. The opinion speeds up the processing of the application for financing at Finnvera. The same opinion can also be used by Employment and Economic Development Offices when processing applications for start-up grants. Our cooperation on microguarantees with banks improves financing options if the security is not adequate for bank financing. Finnvera s guarantee decision is based on bank s assessment. What collateral is needed? Although Finnvera s financing decisions are based on the assessment of the enterprise s potential for successful business, collateral also plays a role. The need for collateral is investigated separately for each project. Finnvera always requires that the principal shareholders of a limited liability company have given a limited guarantee where the guarantor is responsible for the debt in the

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7 same way as an individual debtor is responsible for a personal debt. Sole traders, the partners of a general partnership and the active partners of a limited partnership are always personally responsible for the loans taken by their enterprises. How much does the financing cost? Finnvera charges fees and interest for the financing provided. The amount depends on factors such as the risks involved in the project and the enterprise financed as well as on the applicant s own share of financing. How to apply for financing? You can submit an application for financing safely and reliably on Finnvera s website > Online Service. You can log in to the service using your personal bank access codes or a Katso ID for organisations. Attach a business plan and a profit plan to the application. When applying for funding, the company need not be established yet. Where to get help and advice for starting a business? The telephone service of Enterprise Finland, at (in Finnish), provides advice in questions concerning the establishment of an enterprise and the starting of business. The website has guides for new entrepreneurs and an online tool for preparing a business plan and a performance plan. When setting up a business, it s also good to book a time with an advisor at the nearest Enterprise Agency or regional enterprise service. The advisor helps in refining the business idea and drawing up the business plan and calculations. You may also ask the advisor to give an opinion for use in processing an application for Finnvera s financing. For more information, please visit Advice concerning financing Advice on how to apply for financing and how to fill in the online application can be obtained from Finnvera s telephone service, , on weekdays between 8:00 a.m. and 4:15 p.m. Additional information is also available at:

8 Finnvera provides financing for the start, growth and internationalisation of enterprises and guarantees against risks arising from exports /2013 Finnvera plc Telephone service Switchboard addresses: [email protected] Regional Offices: Helsinki, Joensuu, Jyväskylä, Kajaani, Kuopio, Lahti, Lappeenranta, Mikkeli, Oulu, Pori, Rovaniemi, Seinäjoki, Tampere, Turku, Vaasa