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.
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.
Starting from 23rd of July, 2015., loans issued by Capitalia are available on Mintos marketplace and each and every investor can invest in small and medium enterprises in Latvia. The minimum investment is EUR 10.
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.
SIA “Sviestmaize” (sandwich in English) co-owner Edgars Runcis did not choose the name of his company at random – his first business in 2009 was indeed the sandwich business.