INVEGA signs the first agreements with alternative financiers on the provision of loans under the renewed measure “Alternative”

The national development institution Investment and Business Guarantees (INVEGA) signed the first agreements with alternative financiers Noviti Finance, BnP Finance, Faktoro and SME Finance for the provision of loans under the renewed measure “Alternative”. Agreements with 3 other alternative financiers are currently being negotiated, thus, sustainable small- and medium-sized businesses already have the possibility to apply for financing for investment and working capital on more favourable terms.

“We are very pleased with this high level of activity and efficiency of alternative financiers. This cooperation opens up greater opportunities for entrepreneurs to obtain much-needed financing to cover lacking working capital, and to ensure operational stability or development. We invite other alternative financiers to contribute to the implementation of this financial instrument,” said Kęstutis Motiejūnas, CEO at INVEGA.

The part of the loan from the funds of “Alternative” measure amounting up to 500,000 euros may be provided to the loan applicants and small- and medium-sized enterprises that meet the requirements for de minimis aid and financial intermediaries, while the size of the loan itself will not be limited. The interest rate will not exceed 7 %, the borrower will also pay a loan administration and issuance fee, which is limited and shall depend on the size of the loan.

One of the first to sign the agreement with INVEGA on the implementation of the renewed financial assistance measure “Alternative” was the financier Noviti Finance, which has actively implemented the previous INVEGA support measures for business. Linas Armalys, CEO at Noviti Finance, is pleased that this renewed incentive measure opens up new opportunities for small businesses to continue successful operations and grow.

“Thanks to Invega’s efforts, the small businesses today begin a new phase: business financing in Lithuania has never been so easily accessible, let alone at such a low price. This is an exceptional aid and opportunity for our country’s business, especially for small enterprises, for which borrowing has up until now been quite difficult and expensive. We, Noviti Finance, have a goal of ensuring that the businesses that apply for financing can receive it as soon as possible and on the best terms,” said Linas Armalys, CEO at Noviti Finance.

Companies and entrepreneurs can be offered financing in the form of a loan, factoring or financial lease (leasing). Those wishing to use investment and financing of working capital services can sign loan agreements with alternative financiers until 31 December 2022. The incentive measure is financed from the state budget of the Republic of Lithuania. The budget of 50 mln euros is currently allocated for the implementation of this measure.

“The need for the incentive financial instrument “Alternative” is best demonstrated by the fact that the total amount of 10 million euro received has already been distributed to business. Consequently, companies needed both state aid and financial intermediaries able to make prompt decisions. With the introduction of quarantine, businesses are once again facing the challenge of survival, and we are prepared to help them as quickly as possible by allocating the additional 10 million euros financing from “Alternative” measure entrusted to us,” said Mindaugas Mikalajūnas, CEO at SME Finance.

“The renewed “Alternative” measure makes it possible to provide loans for the primary business needs. In order to contribute to a more favourable incentive to SMEs, will not only provide a loan, but will also pay the agreement conclusion fee to the client’s account,” stated Mark Krasovsky, CEO at BnP Finance.

According to Algirdas Gutauskas, the head of the factoring company Faktoro, this measure will allow companies to finance unpaid bills, and obtain a loan or lease on particularly good terms. “We have been working in this field for many years, so we will be able to examine the applications and make decisions very quickly. The money will be paid to companies within one working day, while our managers are ready to provide assistance in filling in the documents,” added Gutauskas.