News by tag "business loan"
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.
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.
With the constantly increasing material costs, construction companies and real estate developers are interested in finishing their projects sooner for lower costs. Sometimes the process can be sped up with additional financing.
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.
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.
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.
Lately, the pandemic’s negative economic aftermath of inflation has become increasingly relevant. For example, in December 2021, inflation in Latvia reached a record-high level of 7.9%. It is important that, under the circumstances when cash swiftly loses its value, it works, not sits in the deposit or savings account. Money can work proactively either by investing in companies (purchasing shares) or lending to the companies.
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
Capitalia and the European Investment Fund (EIF) have signed an agreement on a guarantee instrument supporting small businesses in Latvia, Lithuania and Estonia, for a total amount of EUR 10 million. With this guarantee, small businesses will get better access to finance. The agreement is supported by the European Fund for Strategic Investments (EFSI), the heart of the Investment Plan for Europe, and by the Employment and Social Innovation (EaSI) programme
During the year 2015 Capitalia has issued over 3 million of loans to small and medium sized businesses in the Baltic States. The financing offered by the company was used by 237 companies. Average issued loan amount to one company was EUR 9 000 while average term was 12 months. Most business loans were issued to companies in retail and manufacturing industries. Notably, most of the clients have been companies from the regions.
Investors are offered to invest in invoice backed short-term loans.
From today, February 4, marketplace platform Mintos will offer to its investors an opportunity to invest in AS Capitalia loans that are backed by issued but yet unpaid invoices. This enables to invest in invoices that small and medium sized companies have issued to largest enterprises in the Baltic States.
Capitalia, represented in NASDAQ Riga stock exchange, is the leading alternative financing provider for small and medium enterprises in Latvia and Lithuania. It offers modern and simple loans to businesses that often are overlooked by the traditional banking sector. To date Capitalia has financed working capital and investment needs of more than 500 enterprises investing over EUR 12 million. From January 2016 company has obtained necessary permits and will start servicing clients also in Estonia.
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 has registred change of legal status from Limited Liability company (SIA) to Joint stock company (AS). This is another step in the company development which as well closes merger process with two Limited Liability companies – Poscredit and Rinovus.
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.