Latest tranche of €372 billion investment mobilized by InvestEU is targeted at businesses in the Netherlands, Baltics, and Finland with guarantees up to 80% and micro-financing up to €50,000 without the need for collateral.
Amsterdam (28 August, 2023) – SME Finance, the fintech specializing in growth financing for small- and medium-sized enterprises, has signed a strategic cooperation agreement with the European Investment Fund (EIF) to offer enhanced lending opportunities to SMEs in the Baltic states, Finland, and the Netherlands totaling approximately €40 million under the European Union’s “InvestEU” program.
Backed by loan guarantees of up to 80% from the EIF, SME Finance will extend lending to targeted businesses to achieve new growth by investing in innovation, sustainability, or digitization projects. Additionally, SME Finance will provide microfinancing of up to €50,000 specifically designed for very small businesses employing up to 10 employees with yearly revenues not higher than €2 million.
“We fully align ourselves with SME Finance’s motto of ’empowering growth’ for small businesses looking to invest in innovation, digitalisation and sustainability,” said EIF Chief Executive Marjut Falkstedt. “These are key priorities of InvestEU and in achieving them, we are delighted to support agile online and alternative lenders that help diversify SME finance sources.”
The EIF is addressing the persistent problem of SME access to finance. Research shows that demand for alternative finance has increased over the past year, especially for loans under €1.5 million. In 2022, as many as 55,000 SME entrepreneurs obtained credit through an alternative lender, representing a 25% increase compared to 2021. Banks are focusing more on larger credits above EUR 1 million, as small credits are less profitable for them.
Bas Vanhorick, CEO of SME Finance Netherlands says: “This agreement with the EIF means that SME Finance can offer companies financing where we could not before or on significantly better terms. Our flexible and efficient financing solutions already cover investment projects and working capital. Now we offer even better terms and lower or even no collateral requirements at all.”
About SME Finance
Established in 2016, SME Finance is building an AI-driven financial technology platform that makes quick lending decisions, allowing us to provide the best financing solutions for small and medium enterprises in the Baltics and the larger EU region. SME Finance has already provided more than €1.4 billion in working capital to over 3000 growing businesses across Europe.
SME Finance is revolutionizing the way small and medium-sized enterprises, digital businesses, and freelancers in Europe access working capital. With their AI-driven financing platform, SME Finance delivers accurate, unbiased lending decisions within just one hour. Innovative solutions include a single platform, SmeGo, and a mobile app – a comprehensive financial service infrastructure designed to empower and support European entrepreneurs.
About Bas Vanhorick
Coming from a family of entrepreneurs, Bas started working in the financial sector upon completing his university degree. Bas filled various positions, mainly in Corporate- and SME Banking in leading international banks Fortis/ABN Amro and ING, in the Netherlands, Belgium and France, amongst others as regional director for SME’s in Amsterdam and as Head of ING’s SME business in France, where he set up and ran the SME business line, including an online instant lending platform, a revolutionary approach at that time. In 2018, after almost 19 years in large corporate banks, Bas moved to the leading French fintech lender October, where he co-founded the Dutch platform and acted as a board member and CRO for the Dutch entity. Now Bas is CEO/ Country Head of SME Finance in the Netherlands.
