The guarantee agreement will see EIF facilitate more than €40 million in new financing in the form of loans, leases and factoring for micro and small enterprises and small mid-caps in the Baltics, Finland and the Netherlands.
Backed by portfolio guarantees of up to 80% from the EIF, SME Finance will extend lending to targeted businesses to achieve new growth by investing in innovation, sustainability or digitalisation projects.
SME Finance CEO Mindaugas Mikalajūnas said: “This agreement with the EIF means SME Finance will be able to offer financing to businesses on significantly better terms.
“Our flexible and digital financing solutions already cover investment projects and working capital. We now offer even better pricing, reduced collateral requirements, or even no collateral at all.”
SME Finance will also provide microfinancing of up to €50 000 specifically designed for very small businesses employing up to ten employees with yearly revenues that do not exceed €2 million.
The EIF is aiming to address the persistent challenges small and medium-sized enterprises face in accessing finance.
EIF Chief Executive Marjut Falkstedt, said: “We are fully aligned with SME Finance’s motto of empowering growth for small businesses seeking to invest in innovation, digitalisation, and sustainability.
“These are key InvestEU priorities and in achieving them, we are pleased to support the agile online and alternative lenders helping to diversify sources of financing for SMEs in Lithuania and the Baltic region.”
Keep up with all the latest FinTech news here
Copyright © 2023 FinTech Global