Internationalization is a natural growth direction for Finnish SMEs – the domestic market is small and growth opportunities are limited. According to Business Finland, they funded internationalization projects for 850 companies in 2025, totaling EUR 280 million. As an entrepreneur, I have seen how a good financing plan makes the difference between successful and failed internationalization.
Costs of Internationalization
Opening the first export market is a significant investment. Costs consist of market research, establishing a sales organization, product localization and marketing. A typical budget for the first year is EUR 50,000–200,000 depending on company size and target market.
Typical internationalization cost items:
- Market research and target market analysis: EUR 10,000–30,000
- Establishing a sales organization (agent/subsidiary): EUR 20,000–80,000
- Product localization and certifications: EUR 5,000–50,000
- Marketing and trade fair participation: EUR 15,000–40,000
- Legal advice and contracts: EUR 5,000–15,000
- Working capital needs (long payment terms, inventory): EUR 30,000–100,000
Public Financing Sources for Internationalization
Business Finland – Innovation and Internationalization Financing
Business Finland is the most important public financier for internationalization. They offer several financing instruments for different stages of internationalization. Financing is typically a combination of grants and loans, with a self-financing share of 40–50%.
Business Finland financing instruments:
- Market Explorer: Market research funding, up to EUR 10,000 (50% grant)
- Tempo financing: EUR 50,000 for internationalization, 50% self-financing
- R&D financing: Product development for international markets, grant + loan
- NIY financing: For young innovative companies, up to EUR 1.25M
- Innovation voucher: EUR 5,000 for expert services, 100% grant
Finnvera – Export Guarantees and Export Credits
Finnvera is Finland's official export credit agency (ECA). Finnvera's total portfolio of export guarantees and export credits was EUR 24 billion in 2025. Key products for SMEs are the export guarantee and the export receivables guarantee.
Finnvera export finance products:
- Export guarantee: Protects export receivables from the buyer's insolvency
- Export receivables guarantee: Covers the credit risk of an individual export transaction
- Export credit: Finances the foreign buyer's payment of the purchase price
- SME guarantee: Guarantees the bank's export-related working capital loan
Vientikaupan rahoitus
Finance your export trade's long payment terms safely
ELY Centre – Development Grants
ELY Centre development grants support SME internationalization by covering 20–35% of costs. In 2025, ELY Centres granted EUR 45 million in internationalization-related grants. Grants can be applied for trade fair participation, market research and establishing international sales organizations.
Private Financing Sources for Internationalization
Private financing is usually needed alongside public funding. Bank financing, invoice financing and venture capital investments are the most common private financing sources.
Private financing sources:
- Bank loan: Working capital loan for export trade financing, interest 3–7%
- Invoice financing: Export invoice financing, funds in 24 hours, cost 1–3%
- Venture capital: Suitable for companies targeting rapid international growth
- Crowdfunding: An alternative for smaller financing rounds
Finland's goods exports were worth EUR 73 billion in 2025, up 2.8% from the previous year. SMEs account for about 16% of exports, and increasing this share is a national goal. Public financing sources offer significant support.
Internationalization Financing Plan
Successful internationalization requires a phased financing plan. In my experience, the approach that works best is one where financing for each phase is secured before moving to the next.
Phased financing plan:
- Phase 1 – Market research: Business Finland Market Explorer + own financing (EUR 10,000–30,000)
- Phase 2 – Piloting: ELY grant + Tempo financing + own financing (EUR 30,000–80,000)
- Phase 3 – Market entry: Bank loan + Finnvera guarantee + invoice financing (EUR 50,000–200,000)
- Phase 4 – Scaling: Venture capital or broader debt financing (EUR 200,000+)
Currency Risk and Its Management
When exporting outside the eurozone, currency risk is a significant factor. Exchange rate changes can eat up the entire trade margin. Hedging methods include currency forwards, currency options, invoicing in euros and natural hedging. Hedging cost is typically 0.5–2% of the transaction value.
Trade Finance Instruments for Export
International trade uses special financing instruments that protect both the seller and the buyer. The most important are letters of credit, documentary collections and export credits.
Export trade instruments:
- Letter of credit: A bank's payment commitment, the safest option
- Documentary collection: A bank-mediated payment request, cheaper than a letter of credit
- Export credit: Finances the buyer's payment term
- Export factoring: Financing of receivables from abroad
Most Common Mistakes in Internationalization Financing
Avoid these mistakes:
- Not utilizing public grants – apply for all possible grants
- Underestimating working capital needs – export trade payment terms are long
- Ignoring currency risk – hedge before the first trade
- Expanding too quickly – focus on one market at a time
- Applying for financing too late – public grant processing times are long
"The biggest mistake in internationalization financing is trying to do everything at once. A phased approach and full utilization of public grants significantly reduces risk."
Summary
Internationalization financing is at its best a combination of public and private financing. Business Finland, Finnvera and ELY Centres cover a significant portion of costs, but private financing – bank, invoice financing or venture capital – is always needed alongside. Plan financing in phases and apply for public grants early.
📌 Summary
Internationalization financing sources include Business Finland (R&D, market research, Tempo), Finnvera (export guarantees, export credits), ELY Centres (development grants 20–35%) and private financiers (bank loan, invoice financing). Opening the first export market costs EUR 50,000–200,000, of which public grants cover 30–50%.
Remburssi – opas vientiyritykselle
Everything you need to know about letters of credit
Valuuttariskin hallinta
Protect against currency risk in exports
