News category "Business financing"
For wholesale and retail companies, it is significantly important to keep high levels of inventory to meet the clients’ demands. In order to increase the turnover, Capitalia working capital financing can be a useful tool for purchasing more goods for sale.
The surrounding anxiety and suspense about the potentially upcoming crisis can quite easily initiate a stressful environment for any company. Fear of increasing invoice expenses, inflation, and the war nearby make the investors act more cautiously when planning next year’s budget and expansion plans. However, the probability of a crisis, if the company is well-prepared, is also an opportunity. There are numerous options for how a company can use additional financing to prepare for a more stable future.
Capitalia invests EUR 150,000 in a Danish start-up Scratcher together with a Finnish venture capital fund Innovestor. Scratcher.io is a marketing company, which uses gamification elements to turn the industry upside down.
Capitalia invests EUR 150,000 in a Lithuanian startup Aispeco in its seed financing round led by a Finnish venture capital fund Superhero Capital.
One of the leading real estate developers in Liepāja, Lion Estate, SIA, actively takes part in improving and renovating apartment houses in Liepāja. In order to realize numerous projects simultaneously, the company used Capitalia financing for settlements with suppliers and for material purchase.
When a company is in a rapid growth stage, additional financial liabilities can create a burden on the development plans and even make the business spend all incoming cash flow on covering monthly payments. In order to avoid financial liabilities and keep control over the business, venture capital can be a convenient tool to reach the desired development goals.
Event Center is one of the leading event machinery and equipment rental company in Estonia. The company provides stage and fencing constructions and sound, light and video equipment for various concerts, seminars, sports, culture, and other events.
Visual Media SIA is one of the market leaders in the media industry – the company places large format advertising posters in Riga, and also sells the slots to marketing agencies. At the moment, the company has 30 advertising slots.
Latvian startup Aerones attracted seed investment of USD 9 million to develop robotic services for wind energy operators in the whole world.
Ceranos Invest, OU, is a well-known sea kayak manufacturer operating under brandname Seabird Designs. This spring Capitalia was proud to help the company execute its ambitious expansion plans.
After the long months of winter and rain, the arrival of warm weather also starts the active season of forestry companies. In order to work faster, numerous forestry companies purchase new and slightly used forestry machinery and trucks, but not all companies have enough funds to purchase machinery.
Capitalia as a financier participated in RCG Lighthouse, SIA, share buyout. With the help of Capitalia financing, the founders and managers of the company bought 49% of shares that belonged to a venture capital fund.
Capitalia received the award for the most environmentally friendly investment of 2021 in Latvia. The recognition was awarded for the investment in Aerones - a fast-growing startup based in Latvia that manufactures drones for wind turbine maintenance.
Capitalia has invested EUR 250 thousand in an engineering simulation and modeling startup Cenos. In this financing round led by Startup Wise Guys, in total, the Latvian-based company raised EUR 1 million.
Capitalia encourages companies to think about and implement good environmental, social and corporate governance (“ESG”) standards. That is why already since 2018 ESG factors have been important components of Capitalia’s scoring and pricing for financing small and medium businesses in the Baltic countries
From today JSC Capitalia will provide new finance product for small and medium enterprises – invoice purchasing. Invoice purchasing is an easy and convenient way for businesses to improve cash flow and increase working capital. With this product companies can sell their issued invoices for goods or services and receive payment already on the following day. This new and innovative financing product is a modern alternative to traditional factoring provided by commercial banks.
We are happy to have clients from various business sectors, who share their observations about our business financing products. We believe that it will be interesting and useful to our existing and future customers.
Capitalia financing is a good option for companies to whom traditional business loans are not available or suitable. Here you can find a short comparison of Capitalia microloan and traditional business loan.
Capitalia signs agreement with the Latvian Guarantee Agency and expands financing product portfolio introducing microloan with state aid. The program provides lower interest rate and commission fee, and offers loans for longer term than the standard Capitalia microloan. The state aid program is designed to improve the financing availability to small and medium companies
Capitalia offers new financing product - factoring - financial transaction based on invoices that are pledged as collateral. It is a widely used type of loan among wholesalers and manufacturers, and now it is available also to small and medium companies that cannot apply for bank financing.
Private entity ŠILUMA IR KO is producing storage tanks and bulk water heaters. Company is continuously expanding and has competitive adventage by supplying high quality products at attractive prices.
Even though banks’ lending policies are getting milder and business loan portfolio size is forecasted to continue increasing, many companies will still not qualify for bank or credit union loan. In previous survey of commercial banks by Bank of Lithuania results revealed expected increase in demand for business loans of 38%; however portfolio grew only by 2%. Furthermore current survey shows that increase in demand is going to be even bigger for next period and is estimated at 60%. As a result business loans portfolio will be increasing; however big part of this demand will not be satisfied by banks and credit unions.
Twice per year the Bank of Latvia conducts a commercial bank survey including research of demand for business loans. Most of the banks since year 2010 have reported increasing demand for the particular type of financing. The trend seems to be clear and evident as the Latvian economic situation has experienced solid growth that in turn stimulates the entrepreneurial optimism and the desire to invest in business development. However, according to the quarterly report of The Financial and Capital Market Commission, despite the increasing demand, the total commercial bank business loan portfolio is declining.