Setting up your new business in Finland is easier to enter the European market. Finland allows you to start a company here regardless of your nationality. To start a new business in Finland, it’s imperative to have some things. These include:
- Necessary professional skills
- Right of residence
- Sufficient skills of Finnish language
- Organize your financing
The process to start a new business is quite the same for both foreigners and Finnish nationals. However, whenever it comes to establishing your business, consider a good business idea to make a better start. Also, ensure that you have enough skills to successfully manage and grow your business. Additionally, get familiar with the rules and regulations of running a new business in Finland while managing the right source of financing for your business.
A comprehensive guide on how to finance your new business in Finland.
Are you trying to start your new business in Finland? Then here, we have brought an overview of different ways to finance your business in Finland more effectively. It will surely let you have a better idea about things in this regard.
So, here we go:
The purpose of startup or new business financing
The absence of money is one of the key issues that arise when an entrepreneur decides to start a new business. This common problem usually occurs when you have the desire, business idea, aspiration, and a proper business plan in place.
However, you don’t have enough capital to turn your business plan into a real business. It never means to abandon your business idea if you don’t have enough capital. Instead, you should start looking for new business financing options available in Finland and convert your business idea into a working organization.
The principal objective of new business financing is to support business development, product development, and research projects. Financing can take different forms, including a subsidy, guarantee, or loan. The enterprise’s equity may get strengthened with the help of guarantees, loans, and capital investments.
Types of loans you can get for your new business in Finland
If you want to know about the agencies, organizations, or authorities that can assist you in the business development and financing of Finnish enterprises, more particularly small to medium-sized businesses. So, let’s get to know more about these below:
Finnvera is a Finnish State-owned specialized financing company that provides risk financing services to the businesses operating in Finland. With ERDF co-financing, Finnvera has become able to accept higher risks as well as lower collateral. The organization has established its identity as an effective solution for small to medium-size businesses that usually cannot get enough loans in the open market.
In simple words, Finnvera is here to provide financing for the growth, start, and even internationalization of your business in Finland.
The organization also offers a guarantee against risk arising from exports. Additionally, it can strengthen the competitiveness and operational potential of both new and existing businesses by providing loans, export credit guarantees, domestic guarantees, and associated services with export financing.
How does Finnvera work?
However, the loan agreement of Finnvera is a practical policy application to facilitate ERDF funding use to co-financing loans with some specific references to subsidized loans. This loan form comes up with greater efficiency for job creation and avoids a culture of aid dependency creation.
That’s the reason, why with ERDF co-financing help, Finnvera is taking higher risks along with lower collateral. It is making it possible for the organization to grant loans to small to medium-sized businesses even at an interest rate lower than usual. However, the types of loan you can get with Finnvera include:
- Finnvera micro-financing scheme
- Entrepreneur loan scheme of Finnvera
- Growth financing scheme of Finnvera
The project of Finnvera is operating in 16 regional offices and helping more than 27 000 clients. It helped a lot of new businesses to establish in Finland. So, you can also consider it as an effective financing option to start your own business effectively.
ELY Centers are also granting aid to small to medium-sized business entities to develop their business operations. Items covered under this financing solution include business entities development, product development projects, your business’s internationalization, and other major areas of project development.
You can submit your applications under Economic Development, Transport, and the Environment centers to apply for a loan under ELY centers. You can also get in touch with them through their electronic services to get further information about the funding they offer. It will surely help you to choose a better option to finance your new business in Finland in the best possible way.
Funding of Business Finland
Business Finland is another lucrative option you can consider to finance your new business in Finland. It helps a business to test their business concept’s functionality on a new export market. This will help your business idea thrive and let you learn more about international growth for the business. Additionally, you will be able to develop and grow your business, products, and services successfully while improving the process of leadership and innovation.
- Business Finland has different funding services for startups, small to medium-sized businesses, large companies, and mid-cap businesses.
- In other words, Business Finland is providing services for product development, research, and business development needs. Business Finland is also a government organization that supports funding needs of innovative projects, travel, trade, and investment promotion.
More than 600 experts of Business Finland are working in about 40 global offices and 16 regional offices located strategically all around Finland so that you can access and get the adequate funding solution for your business idea with ease.
Financing of Credinord.
This Finnish company is here to offer business loans and expertise regarding how to run your venture effectively and efficiently. It offers the quickest, no-fuss process with their long expertise in the industry.
That’s all you need to know about financing your new business in Finland. Make sure to perform your due diligence also before finalizing any of the above-mentioned ways to finance business in Finland.
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