What to consider when applying for the popular Finnvera loan

Finnvera recently announced that its loan aimed at SMEs has been in high demand. Yrittajat.fi is aware that 10–20 applications continue to be made daily. Finnvera has also received a high number of incomplete applications which it has been unable to process further.

“Loan application processing proceeds most smoothly when the necessary details and supporting documentation are submitted with the application. Otherwise, we put the application on hold until we receive the outstanding information,” says Timo Liuksila, Vice President at Finnvera.

Liuksila says the most frequent reasons for pausing application processing are that an application does not contain a profit plan and current financial details for the company.

“Our online application is easy enough to use. You can save a partially completed loan application, allowing you to finish filling it out when you have the necessary information,” Liuksila says.

The aim of the temporary six-month loan is to accelerate micro-businesses’ growth. During the first month, a total of €1.6 million in loans was awarded. The most common reason for applying for a loan was hiring an employee.

Check loan criteria carefully

At present, the loan processing time is a couple of weeks. Liuksila says that the aim is to process loan applications as quickly as possible. The highest number of loan applications has come from the largest provinces of Uusimaa, Pirkanmaa, Central Finland and Southwest Finland.

A high percentage of applications, in double digits, has been declined. The reason was failure to meet criteria specified in the application instructions.

“I recommend carefully reading the loan criteria before submitting the application,” Liuksila says.

Finnvera is satisfied with the strong demand for the loan.

“This loan is a change that business owners have wanted to see, because we know that growth-oriented micro-enterprises often face challenges accessing finance. We’ve been able to finance a remarkably broad range of companies and industries. Every company can be a potential growth company, and it’s important that no one is excluded from the running too early.” Those were the words of Elisa Sipponen, Regional Manager at Finnvera, in a press release previously. We reported earlier on companies’ financial difficulties here.

The Finnvera loan is intended to meet the finance needs to promote the growth, productivity or competitiveness of a company employing fewer than ten people. These needs may be hiring an employee, expanding operations, or digitalization.

Between €20,000 and €50,000 may be borrowed.