Loan for small enterprises

  • It is made invest in measures (tangible and intangible) required for a new business project;
  • Invest in fixed assets: equipment and production facilities and to other enterprises to expand companies activities;
  • Acquire current assets – materials/inventories, etc.

New enterprises are enterprises started within the last 24 months (i.e. the company does not yet have financial reports for two full years).

Fill in application

If you have any questions related to financial information of your company, please login to the internet bank or contact us by phone 1633. If calling from abroad, please call +370 5 268 4422.

We will reply to your questions from 8 a.m. to 6 p.m. on business days. If you need urgent information, please call us by phone 1633. If calling from abroad, please call +370 5 268 4422.

About the service

  • Loan amount and term

    • minimum loan amount – 2,000 euros;
    • maximum loan amount:
      • 15,000 euros if the loan is guaranteed by the main shareholder (natural person) and if no additional assets are pledged;
      • 200,000 euros if additional property is pledged;
    • if the loan is granted for long-term investments, up to 70 percent of the estimated amount is funded;
    • the loan amount, when pledging immovable property, may not exceed 70 percent of the market value of such property;
    • the loan amount, when pledging movable property, may not exceed 50 percent of the market value or carrying value of such property;
    • loan term – up to 5 years (if the loan is granted for long-term investments and additional property is pledged) or up to 2 years (if the loan is granted for funding working capital or for long-term investments, yet no additional property is pledged).
  • Loan security

    • by pledging Swedbank account balances (in all cases);
    • by a guarantee of the main shareholder (natural person) or if the loan amount exceeds 10,000 euros – by pledging land and buildings or other immovable and/or movable property. The investment object itself usually needs to be pledged.
  • Main conditions for receiving the loan

    • the enterprise must have a bank account at Swedbank;
    • enterprise's equity shall be at least 20 percent (taking into account both the new loan and shareholders' own contribution to the project);
    • enterprise's Debt/EBITDA ratio (calculated as the ratio between enterprise's financial obligations (including the new loan) and profit before interest, tax, depreciation and amortization at the end of the reporting period) may not exceed 3.5;
    • the immovable property being pledged must be evaluated by independent appraisers acceptable to the bank;
    • tangible assets being pledged must be insured at an insurance company acceptable to the bank; the insurance coverage should be continuously valid for the entire loan period.
  • Loan disbursement, repayment and interest

    • the loan shall be disbursed in a single or multiple payments, as a rule, within 6 months;
    • as a rule, the loan shall be repaid by annuity; instalments shall be calculated by dividing the loan amount plus interest due from the number of months of the loan period (minus the grace period). If additional property is pledged, the loan may be repaid in smaller instalments, repaying the remaining amount at the end of the loan term. The repayment shall start within 6 months (grace period);
    • a variable interest rate is set for the loan, depending on the changes of the base interest rate;
    • interest shall be calculated from loan disbursement date to its repayment date;
    • interest shall be charged and written off from your bank account each calendar month.

The documents required

After interview with you about financing opportunities, we will ask you to submit:

  • Application form
  • Annual financial reports
  • Guarantor's application

If immovable property is pledged, we will ask you to submit the following:

  • Immovable property evaluation report
  • Movable property/inventory list
  • Income-expenditure forecasts
  • Business plan

Information regarding potential risks

Improper fulfilment of your financial obligations increases your funding costs and can negatively affect your credit history; moreover, if the agreement is terminated due to a material violation on your side, forced debt recovery may be launched and you may lose your ownership right to the pledged property.

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