INVEGA's new Alternatyva instrument to facilitate alternative finance borrowing for SMEs
The national development agency Investicijų ir Verslo Garantijos (INVEGA) has signed its first contract with alternative finance provider Noviti Finance on lending under the Alternatyva facility.
"We are very pleased that we have already signed our first cooperation agreement with alternative finance provider Noviti Finance. This opens up another opportunity for sustainable small and medium-sized businesses to access funding to cover their working capital shortages. We hope that more and more finance providers will join this scheme. In this way, we will be able to ensure wider access for businesses to more finance providers,” says Mr Kęstutis Motiejūnas, CEO of INVEGA.
From now on, small and medium-sized enterprises (SMEs) will be able to turn to alternative sources of funding to obtain a loan or conclude leasing or factoring transactions needed for business development or sustaining their current operations. The facility gives access to alternative lenders (other than financial institutions, except for credit institutions and their affiliates engaged primarily in lending).
The INVEGA aid facility is important for alternative finance providers as well.
"Looking for money in this uncertain environment is a headache for any business, including finance providers. Therefore, INVEGA's Alternatyva facility is particularly attractive: it will make a very strong contribution to the efficient financing of small and medium-sized enterprises,” says Mr Linas Armalys, CEO of Noviti Finance.
Until 1 December 2020, the Alternatyva instrument can be used for refinancing of loans resulting in improved financing conditions for existing borrowers, i.e. where the loan repayment schedules are extended or the repayment of loan installments is deferred.
The maximum borrowing limit via Alternatyva will be EUR 200,000, but the total amount of the refinanced loan may be higher, depend on the terms of the alternative finance provider.
The first disbursements to SMEs are expected next week.
