09-11-2021 08:34

New growth possibilities for small businesses with the help of European Guarantee Fund

For many small companies, it can be difficult to get a loan to make an acquisition or to grow their business, and the pandemic has made it even harder than before in some industries. Thanks to a loan guarantee programme by the European Investment Fund in Denmark, Finland and Sweden, Nordea can help small businesses get back on the growth track to create new jobs and prosperity. 

In Denmark, Pedro Ploug Raluy had been working for more than 15 years at the Dækgaragen car repair shop on the island of Langeland. Dækgaragen’s main activity is sale and mounting of tyres. Both Pedro Ploug Raluy and the owner of the shop shared a dream of Pedro taking over the company one day.

The business was doing well with impressive growth of 5 to 10 per cent each year. Furthermore, Dækgaragen is the only tyre centre on Langeland and reaching customers up to the southern part of the neighbouring island of Funen, so the market was also promising. However, the right moment for the takeover never seemed to arrive because the collateral required for such an acquisition proved to be a challenge.

European growth booster coming your way

Had the prospective car shop owner known that the European Investment Fund (EIF) was preparing a new massive programme of loan guarantees he might have slept better. The European Guarantee Fund (EGF) was founded to ensure that small and medium-sized enterprises (SMEs) in EU member states with sustainable business plans are provided with liquidity to support healthy businesses to grow and to overcome COVID-19 related adversities.

As Dækgaragen already was a customer in Nordea Business Banking Denmark, the owner referred him to Nordea. This was the setting where Nordea Business Banking came in and offered him a loan supported by a guarantee of 70 per cent from the EIF.  With this guarantee Nordea was able to offer a financing solution together with a competitive price to the entrepreneur-to-be.

Do you want to know more about growth opportunities?

Nordea’s customers within the EGF programme come from various sectors with financing needs covering business transfers, SMEs seeking growth opportunities and businesses suffering from the impacts of COVID-19.

If you want to hear more about the EGF or other growth financing possibilities, please read more on our local websites:

Read also: Nordea introduces guaranteed lending solutions to SMEs together with the European Investment Fund

Financing
Business growth