Obtaining financing is one of the biggest challenges for many SMEs, especially when their own collateral does not meet the bank's requirements. In this situation, a Finnvera guarantee can be a decisive help. Finnvera is a state-owned special financier whose mission is to complement the financial markets and enable business financing in situations where the private financial sector alone is not sufficient.
In practice, a Finnvera guarantee means that Finnvera guarantees part of the company's bank loan or other financing. If the company is unable to repay its loan, Finnvera compensates the bank for the guaranteed portion. This reduces the bank's risk and makes it easier to obtain a financing decision. In 2025, Finnvera granted guarantees to SMEs totaling approximately EUR 1.2 billion.
Finnvera's guarantee types
Finnvera offers several different guarantee products designed for different situations and stages of a company's lifecycle. Choosing the right guarantee type depends on the company's size, industry, and the intended use of the financing.
Start guarantee – security for new businesses
The start guarantee is designed for companies that have been operating for a maximum of three years. It typically covers 80% of the loan amount and is capped at EUR 80,000. A distinctive feature of the start guarantee is that the bank can grant the loan and apply for the guarantee from Finnvera electronically without a separate credit decision from Finnvera. This significantly speeds up the process and makes the start guarantee particularly useful for covering small financing needs in a company's early stages.
SME guarantee – for established business financing
The SME guarantee is Finnvera's most common guarantee type and is suitable for all SMEs regardless of years in operation. The guarantee typically covers 50–80% of the financing amount and can be used for investments, working capital, or acquisitions. The SME guarantee requires Finnvera's own credit analysis, which assesses the company's repayment capacity and the feasibility of the business plan. The guarantee fee is typically 0.75–2% per year of the guarantee amount.
Export guarantee – support for internationalization
The export guarantee is intended for companies that need financing for launching or expanding their export activities. It can cover risks associated with export trade, such as the buyer's insolvency risk or political risk in the target country. The export guarantee is particularly valuable when a company is selling to new markets or when the financing needs of large orders exceed the company's own resources.
According to the Ministry of Economic Affairs and Employment's SME barometer, collateral shortfall is the most common barrier to obtaining bank financing for SMEs. The Finnvera guarantee solves this problem: according to the Federation of Finnish Enterprises' survey, 89% of companies that received a guarantee found it significantly easier to obtain financing.
How to apply for a Finnvera guarantee – step by step
Applying for a Finnvera guarantee is a straightforward process, but good preparation significantly speeds up processing. The application process varies slightly depending on the guarantee type, but the basic principle is the same: the company applies for financing from the bank, and the bank applies for the guarantee from Finnvera on the company's behalf, or the company applies directly from Finnvera.
Steps in the application process:
- Assess your financing needs: define what the financing is needed for and how much
- Prepare or update your business plan and financial projections (income statement, cash flow forecast, balance sheet)
- Contact your bank and discuss the financing need – the bank will assess whether a Finnvera guarantee is needed
- For start guarantees, the bank applies electronically – a decision is often made on the same day
- For SME guarantees, Finnvera conducts its own credit analysis – processing time is 2–4 weeks
- After the guarantee is approved, the bank grants the loan and the Finnvera guarantee takes effect
How much does a Finnvera guarantee cost?
The cost of a Finnvera guarantee consists of a guarantee fee, which is typically 0.75–2% per year of the outstanding guarantee amount. Additionally, a processing fee is charged, usually ranging from a few hundred to a few thousand euros depending on the size of the financing. The guarantee fee is paid alongside the bank's interest, so it increases the overall financing cost. It is important to calculate the total cost including the bank's interest rate, Finnvera's guarantee fee, and any other charges.
Requirements for a Finnvera guarantee
Finnvera requires the applicant to meet the following criteria:
- The company is registered and operating in Finland as an SME (fewer than 250 employees, turnover below EUR 50 million)
- The business is profitable or has a realistic plan to achieve profitability
- The entrepreneur has sufficient expertise and commitment to the business
- The company is not in financial difficulty (as defined by the EU)
- There is a clear purpose for the financing and a repayment plan
Using a Finnvera guarantee and invoice financing together
A Finnvera guarantee and invoice financing do not compete with each other but complement each other excellently. A Finnvera guarantee helps obtain long-term financing for investments and working capital, while invoice financing addresses day-to-day cash flow management. A typical combination is a Finnvera-guaranteed bank loan for the company's core investments and invoice financing for the rapid collection of accounts receivable.
For a company in a growth phase, this combination is particularly effective: the Finnvera guarantee enables larger investments without full collateral, and invoice financing ensures that the growing business's cash flow remains healthy. This allows the company to take on larger orders without fear of cash flow drying up.
Practical tips for Finnvera guarantee applicants
Use these tips to ease the application process:
- Prepare your financial projections carefully: Finnvera values realistic cash flow forecasts and clear assumptions
- Be honest about risks: do not hide challenges, but show how you manage them
- Take advantage of the free advisory services offered by ELY Centres and Enterprise Agencies – they help with application preparation at no cost
- Apply early: do not wait until the financing need is urgent, as processing takes time
- Talk to your bank first: the bank can advise on whether a Finnvera guarantee is needed and what type
