SME growth financing is in a period of transformation. Alongside traditional bank loans, numerous new alternatives have emerged that suit different situations and needs.
Growth Financing Options
Most common forms of growth financing:
- Bank loan – traditional and affordable, but requires collateral
- Invoice financing – flexible, does not add debt to the balance sheet
- Finnvera loans – affordable financing for growth
- Venture capital – suitable for rapid growth, but requires sharing ownership
- Crowdfunding – especially suitable for consumer products
When to Choose Which?
The choice depends on your company's situation, growth pace, and risk appetite. Rapid growth requires more flexible financing, while for an established business, a bank loan may be the most affordable option.
Invoice financing is the fastest way to obtain working capital without additional debt – a decision in as little as 24 hours.
Combining Financing Options
Often the best solution is to combine different financing options. For example, a bank loan for investments and invoice financing for working capital management.
