Portfolio Guarantee can facilitate access to funding for small and medium size enterprises (SMEs) when an SME is unable to provide a collateral that is attractive or sufficient to a financial institution. A portfolio guarantee secures the repayment of 80% of the principal amount of loan/leasing to a financial institution. With Portfolio guarantees financial institutions require a smaller down payment and apply a lower interest rate as compared to market conditions. Portfolio guarantees are issued as de minimis aid as defined in the Commission Regulation (EU) 1407/2013.

Portfolio Guarantees for Leasing Transactions

The instrument Portfolio Guarantees for Leasing Transactions Funded from the European Regional Development Fund secures the repayment of 80% of the principal amount of leasing to a financial institution.

Portfolio Guarantees for Loans

The instrument Portfolio Guarantees for Loans Funded from the European Regional Development Fund secures the repayment of 80 percent of the principal amount of the loan to a financial institution.

Portfolio guarantees for factoring transactions

The instrument of Portfolio Guarantees for Factoring Transactions assists micro, small, and medium businesses with funding of commercial transactions where each financial body, involved in implementation of the instrument of portfolio guarantees for factoring, offer a 80% guarantee to the factoring transactions part of the portfolio.

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