Financing companies - starting companies

One of the most frequent obstacles to establishing and expanding a company is the lack of capital.

In the Baltic states, 80% of jobs are at small and medium-sized enterprises. It’s important for all of us that these companies are able to develop and grow.

Small and recently established companies are generally unable to receive loans from banks as they lack the necessary collateral, assets or history. Yet many of them are drivers of innovation and create jobs in the economy.

The role of KredEx in the finance market is to remove these obstacles to the smooth functioning of the market. We engage in cooperation with all stakeholders in the financial market, including all of the banks in Estonia.

We offer starter loans and loan guarantees to companies that are just starting out.

About 500 companies have been launched with support from a KredEx starter loan. Those companies have now created over 1,900 jobs.

Many companies start with a loan guarantee instead, so it’s worth looking into that option as well.

The Muhu Pagarid bakery chain and Boost Yourself are two successful companies that have been started with our help.

Advice for starting a business

  • Think your business plan through, especially cash flows – they must be sufficient to be able to repay the loan on top of other expenses.
  • Consult customer representatives at a bank to find the solution that’s right for you.
Services for start-up companies
The KredEx start-up loan is intended for small and medium-sized enterprises that have been operating for up to three years, for financing their company investments and/or circulating capital.

A loan guarantee is useful if a company wishes to use a bank loan, a lease or bank guarantee but lacks sufficient collateral or operating history to be issued a loan.

NB! KredEx surety can only serve as an additional guarantee for a new obligation (bank loan, lease transaction or bank guarantee).

An industry loan is useful if a company wishes to use a bank loan or lease for making an investment but lacks self-financing. In such a situation, an industry loan, being a subordinated loan, can increase the company's self-financing in the eyes of co-financing sources.
KredEx is providing venture capital through funds of funds to help Estonian start-up companies and well-established and fast-growing companies expand and finance their growth.