When a company needs to borrow money, there are several different solutions that can be worth investigating. One can, for example, borrow money from an ordinary large bank or turn to one of the loan companies that focus especially on companies. Furthermore, there are sites online where private individuals lend money to other private individuals or to small businesses. 

An example of a lender that focuses on just companies in need of financing is Almi Corporate Partner, which is owned by the Swedish state. Almi Corporate partner also offers special corporate loans in niches such as innovation, growth and export in addition to regular corporate loans. They also have a special micro loan for companies that need to borrow a maximum of SEK 200,000. You can read more about Almi’s different loans below.

Alternatives to loans

Alternatives to loans

 Before taking a loan, one should always look at what forms of support are available, for example at the Employment Service, the Swedish Agency for Economic and Regional Growth, Vinnova, the Swedish Board of Agriculture, the Almi Business Partner, NOPEF, Swedfund and the County Administrative Board. Some support is national while others are regional. Since the EU Structural Funds distribute a lot of money each year, one should also take a look at Verksamt.se.

Another financing solution that has grown considerably in recent times is crowdfunding over the net. On sites like fundedbyme.com and kickstarta.nu you can collect donations from people who want to support your project. Sometimes it takes the form of a kind of indirect potential pre-ordering of goods, because the recipient of the money undertakes – if the project is realized – send products to the donors according to how much each donor has contributed.

Equity crowdfunding on sites such as crowdcube.se and the above fundedbyme.com is used by companies that want to raise risk capital in exchange for shares in the company. Instead of traditionally trying to get a lot of risk capital from a single investor, many small amounts can be raised from many different investors. Note that this is thus about venture capital – not about loans.

Almi Företagspartner AB

Almi Företagspartner AB, commonly called Almi, is a Swedish limited liability company that is wholly owned by the Swedish state. Almi has about 50 regional subsidiaries throughout the country, which are owned by the parent company together with regional owners, usually county councils or regional associations.

Almi not only offers corporate loans but also advice and venture capital.

There are several different corporate loans in Almi’s range, to suit different activities and needs. Below you will find some examples. For current information, visit Almi’s site .

Almi business loans

ab Almi corporate loans are intended for small and medium-sized companies and do not focus on any particular industry.

Each loan application is treated individually and there is no general upper limit on the size of the loan, but it is decided on a case-by-case basis. The loan period is normally three to five years.

As collateral, business mortgage or corporate mortgage is required + the guarantee. Almi often approves loan applications even if the loan is regarded as high risk (within reasonable limits), but compensates by taking out a higher interest rate than what is standard among private lenders. The higher interest rate is also motivated by the fact that state Almi should not compete directly with the private loan companies, but act as a complement to the loan market. The exact interest rate for an Almi corporate loan varies from case to case, depending on the risk profile.

In practice, the financing solution usually works out in cooperation with the bank that the applicant company already uses.

Almi micro loan

Almi micro loans are a loan of a maximum of SEK 200,000. It mainly focuses on micro enterprises and on young start-up companies. The purpose is to help new companies to be established and grow.

It is permissible to borrow up to 100% of the companies’ capital requirements and the money may be used for both investments and working capital.

Thanks to a guarantee from the European Investment Fund, Almi micro loans can be provided with particularly favorable terms, including favorable interest rates. A period (max. 12 months) at the beginning of the loan period can be made amortization free so that you do not have to start repaying the loan directly.

Maximum amount SEK 200,000
Maximum payback time 72 months (6 years)
Security for the loan Limited personal guarantee for 10% of loan amount
Setup fee SEK 500

The above mentioned guarantee is funded by the EU through the Employment and Social Innovation Program (EaSI).

Almi innovation loans (for early-stage innovation projects)

Lowest possible loan amount: SEK 50,000.

Almi innovation loans is a condition loan for companies that need to finance an innovation project that is at an early stage. This may, for example, involve the company needing money for product development, market research or protection of intangible assets.

Payment of the loan takes place in stages after reconciliation with pre-established reconciliation points in accordance with the project plan.

An Almi innovation loan may amount to a maximum of 50% of the total financing requirement. For loan amounts up to SEK 300,000, the other half of the funding may consist of budgeted time spent in the project worth SEK 250 per hour. Thus, for the entire financing requirement, a maximum of 50% may be budgeted time spent.

If the loan amount exceeds SEK 300,000, at least 25% of the total funding must be in the form of capital, that is, only 25% can be made up of budgeted closed time. For example, the 25% of capital can come from the company’s equity or be a loan in a bank.

Example:

  • The total financing requirement is SEK 400,000. A maximum of SEK 200,000 can be granted as an innovation loan. The other SEK 200,000 must come from the company, but may consist of budgeted abandoned time.
  • The total financing requirement is SEK 800,000. A maximum of SEK 400,000 can be granted as an innovation loan. The other SEK 400,000 must come from the company, and a maximum of SEK 200,000 of these may consist of a budgeted deadline.

Almi growth loans

Lowest possible loan amount: SEK 250,000

Almist growth loans are for small and medium-sized companies, who need funding to develop business ideas and innovations. The loan may be used both for investments and as working capital. The growth loan must not cover the entire financing requirement.

Thanks to a guarantee from the European Investment Fund, Almi micro loans can be provided with particularly favorable terms, including more favorable interest rates and longer maturities. A period (max. 36 months) at the beginning of the loan period can be made amortization free so that you do not have to start repaying the loan directly.

In practice, the financing solution usually works out in cooperation with the bank that the applicant company already uses.

Maximum payback time 10 years
Security for the loan Corporate mortgage or corporate mortgage + guarantee

The above mentioned guarantee is provided within the framework of the InnovFin, which is funded by the European Union through Horizon2020 and the European Fund for Strategic Investments (EFSI) under the Investment Plan for Europe.

Almi export loans

Almi export loans are available for small and medium-sized companies in all industries. The purpose of the export loan is for entrepreneurs to be able to make export investments.

Almi export loans function largely as Almi corporate loans, but can be taken in both Swedish kronor and in foreign currency. Having a loan in foreign currency can reduce the currency risk for the company.

The loan period for an Almi export loan is usually three to five years.

Corporate mortgage or corporate mortgage + security is used as security.

Almi export loans were created as a collaboration between Almi, the Export Credit Committee, Swedish Export Credit, Swedfund and Business Sweden.

 

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