Access to finance17 November 2009
by Ina Dimireva -- last modified 05 June 2012
An overview of the sources of finance available to SMEs in Estonia.
There are several possibilities for increasing your company's income, such as applying for a bank loan or financial support.
In order to receive financial support, the potential benefactor must be supplied with a business plan and specific objectives along with an overview of the measures to be taken to achieve them.
A start-up business has the possibility to receive start-up aid from the state and the local government. An operating business can apply for financial support, training and consulting.
The purposes of the foundation KredEx belonging to the state business support structure is to improve the access to capital for small and medium-sized enterprises by offering different guarantee products, to support exporting businesses in increasing their export volumes and entering new markets, and to increase the availability of the loans necessary for the acquisition and renovation of housing.
Enterprise Estonia offers support to both start-up and operating businesses. The applications for support in general must be based on a prepared project. State and local governments also grant training support and support for creating new jobs.
Information on support possibilities can be found in the database maintained by Enterprise Estonia and the programme for start-up and growth support.
The information centre of Enterprise Estonia offers direct consultation in the selection and application for support.
Access to EU funding
EU structural funds in Estonia grant support to projects through national authorities or third sector authorities.
Possibilities for funding from the private sector
Small and medium-sized enterprises operating in a rural area can apply for a loan from the Estonian Rural Development Foundation.
Start-up loans are granted by the following banks: Krediidipank, Marfin Bank, SEB Bank, and Swedbank. A start-up loan is suitable for start-up companies and companies that have operated up to 3 years, and is aimed at financing both investments and liquid assets. KredEx provides surety for up to 75% of the loan amount.
In addition, the banks offer different business loans, for which the banks must be approached.
Business support organisations can advise businesses on how to find financing.
Source: Your Europe