2. Start Up loan is intended for small
companies
• For start-ups up to 3 years old
• For investments and working
capital
• The loan amount up to
64 000 EUR
• Maturity up to 5 years, grace
period up to 6 months
• Guarantee fee and loan interest:
+ guarantee fee for KredEx 3%
+ Euribor or bank’s base interest
+ risk margin up to 4%
• KredEx guarantees 75% of the
loan amount, personal surety by
private persons who own the
company is 30-40% of the loan
amount
3. Borrowers – who are they?
• Mostly oriented to domestic
consumption, moderate
growth potential.
But there are excemptions!
• They are people –
management is important
• Enterpreneurship in the
growth- raising number of
enterprizes in Estonia
•
7. Small amounts, higher default rate
• Average loan
22 300 EUR
• Loan application
acceptance rate 47%
• Default rate is relatively
high
• Strongly affected by
economic townturn
• More defaulted loans
with longer maturity
Guarantee
defaults
Defaults by year of
agreement
8. Micros are interesting target group
• Job creation, large share in
the economy, basis for the
future growth
• Interesting group for the
Commercial Banks
- well diversified risk
- not too price sensitive
- less competition
• Simplified rating needed
• Normal loan guarantee and
StartUp loan seem to be
enough in a small, well
developed market
9. Micros have specific issues to target
• Project analysis, paperwork and loan administration - who
does the job?
• Consulting and face to face interaction are important
• Management trustworthiness is a key!
- Do they understand business?
- Do they understand financials?
- Is it business or something else?
• Rather portfolio based and not self sustainable (?), cross
sureties may not be the solution, mutual might be
• Loan motivates to succeed
• Easier to give a grant than a guarantee …
