Starter loan


A starter loan is useful if the company start-up phase is hindered by lack of seed capital and the company lacks sufficient collateral and history for obtaining a bank loan.


  • The starter loan has lower collateral requirements compared to ordinary bank loans.
  • In general, a personal guarantee from the individuals who own the loan recipient is sufficient.
  • If the loan is used for the designated purpose, the guarantee provider is personally responsible for up to 25% of the loan amount.

For who?


starting enterprise
established company
exporting company

Service is suitable if

  • Companies with up to 250 employees which were registered in the Commercial Register no more than three years before the submission by the company of the loan application to the bank
  • Annual turnover of up to 50 million euros or balance sheet volume of up to 43 million euros
  • The company’s owners include only natural persons and/or companies as defined for the purposes of the Commercial Code
  • The company’s equity capital meets the requirements set forth in the Commercial Code
  • The company and its management board members and owners lack undeferred indebtedness that is past due to lenders and is not in state tax arrears. The obligation for filing tax declarations has been fulfilled as set forth in taxation legislation
  • The company is sustainable and solvent and has a feasible business plan
  • Neither KredEx nor the bank has learned of any conviction of the company’s owner, or management board or supervisory board member for an offence against property or economic offence
  • The debt-service coverage ratio (DSCR) is at least 1.2 after the issue of the loan, according to conservative estimates

Important conditions

Starter loans will not be issued for the following activities or to the following businesses:
  • Primary production of agricultural products, fishing and aquaculture and forest management;
  • Manufacture, processing and marketing of tobacco (and related products);
  • Manufacturing, processing and marketing of weapons and ammunition;
  • Acquisition of vehicles and equipment for road freight transport;
  • Acquisition of vehicles and self-propelled machinery on the basis of an authorization for issuing a guarantee on behalf of KredEx;
  • Financing of circulating capital for retail and wholesale companies.
  • Real estate development projects for the purpose of sale and leasing out. If real estate development takes place for the purpose of activities unrelated to the company’s own real estate development, including that of subsidiaries and affiliates, it is permitted to let out part of the premises, provided that the receipts from rentals, other than from subsidiaries and affiliates, do not exceed 30% of the loan applicant’s annual turnover;
  • Export-related activities that are directly related to quantities to be exported, establishing and operating a distribution network or other current costs stemming from export activity if the issuing of the guarantee constitutes de minimis aid;
  • Guarantees related to payment of taxes arising from legislation;
  • The applicant’s direct or indirect owners include companies registered in tax havens;
  • Decommissioning or establishing nuclear power plants;
  • Investments for reducing greenhouse gas emissions generated in the fields listed in Annex I of directive 2003/87/EC
  • Investments into airport infrastructure other than in a case where the investments are related to environmental protection or investments related thereto are necessary for alleviating or reducing the unfavourable environmental impact of airport infrastructure;
  • Companies operating in the field of gambling;
  • The objective of financing is the use of domestic products instead of import products;
  • Fields related to pornography, gambling, unlawful download of data and enabling unlawful access to data networks;
  • Research and development activity in the field of healthcare, the goal of which is to clone humans or develop genetically modified organisms for research or medical purposes.
Key conditions:
  • The maximum loan amount that can be issued to a single loan applicant is 100,000 euros, of which a maximum of 50,000 euros may be used as circulating capital
  • Contract fee of approximately 2%
  • Interest of approximately the 6-month Euribor + 7% on the loan balance per year depending on the bank
  • Contract amendment fee of approximately 1.2%
  • The designated purpose of the loan is financing of investments and circulating capital
  • The loan term is up to 60 months
  • The repayment of the loan takes place by monthly payments on an amortization schedule. At the end of the loan period, the loan balance must be zero
  • The grace period on the principal is up to 12 months and no more than half of the loan period
  • It is not permitted to use the starter loan to refinance existing loans
  • The collateral for the loan constitutes a joint and several guarantee of 25% of the loan amount. The guarantee is to be provided by individuals who own the company, and they may have a direct or indirect holding
  • If the starter loan is not used for the designated purpose or it cannot be proved to the Bank or KredEx that the starter loan is being used for the designated purpose, the maximum amount of monetary liability of the individuals who own the company directly and indirectly will always 100% of the loan amount
  • The loan applicant’s recommended financial indicators
    • Current ratio of at least 1.1
    • Equity capital makes up at least 15% of the balance sheet volume after the issue of the loan
    • Share of self-financing for investment loans is at least 10% of the project cost
    • Total financial obligations do not exceed 70% of the loan recipient’s annual turnover

Good to know

You can find more information about the crisis measures intended to alleviate liqiuidity difficulties caused by the COVID-19 outbreak ON THIS PAGE

Documents needed to apply

  • Business plan
  • CVs for the company’s key persons
  • Financial forecasts for the next three years
  • Audited (if auditing is required) financial statements for the previous financial years (if economic activity occurred) and balance sheet and income statement for the financial year, not older than two months
  • Overview of existing obligations
  • Existing permits and licences

Application process

To apply for the starter loan, contact a bank. The bank will send the application to KredEx. Once it has the information it needs to make the decision, KredEx will generally make the decision within two weeks.

If necessary, KredEx will contact you

The starter loan will be issued by the bank after a positive decision from the bank and KredEx.

For a free consultation on preparing the business plan needed to apply for a starter loan, visit a county development centre.

Banks that issue the starter loan: Luminor, SEB PankSwedbank and TBB Pank.


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Contact us

Mihhail Knut

Mihhail Knut

Client Manager

mihhail.knut [at]
Natalja Pauku

Natalja Pauku

Client Manager

natalja.pauku [at]
Jaak Tikko

Jaak Tikko

Client Manager

jaak.tikko [at]
Tiina Kalme

Tiina Kalme

Client Manager

tiina.kalme [at]
Argo Suurkask

Argo Suurkask

Client Manager

argo.suurkask [at]
Karmen Piip

Karmen Piip

Junior Client Manager

karmen.piip [at]