With Invega temporarily supplementing the conditions of the Avietė solution, opportunities for more and simpler borrowing were created for SMEs through crowdfunding platforms. Based on the new conditions, alongside the existing ones, up to December 31 this year, crowdfunding platforms can offer loans, which would be financed up to 100% from Avietė funding, though for no more than 25 thousand euro. Over a six month period, a company may sign two loan contracts.
“Immediately upon announcing these more favourable loan conditions, over a week, we received three times more applications than usual. This serves to show once again just how vital aid is for our businesses to receive aid in these difficult days. I wish to emphasise that these loans are already being actually issued, these are not just promises, which can be frequently heard of in the public domain as of late.
Despite this, of course, we are responsibly evaluating the situation of every applying company. We can only lend to stably operating companies. That said, let me remind that in this case, the capacity of a loan applicant to fulfil their financial commitments is evaluated based on the most recent available data up to March 1 of this year. This means that the renewed conditions allow those SMEs, which are facing financial difficulties due to the quarantine, to also apply for loans,” Finbee Verslui head Audrius Griškevičius comments.
Most impacted: from retail to transport
MDP Holding companies, which deal in rapid circulation goods wholesale, head Donatas Prastienius says that the loan granted to them based on the new conditions on Avietė has been a quick guarantee for the financing of working capital, which contributes to the company’s growth during this difficult economic period.
“The demand for the categories of goods we sell has increased in the market as of late. Most suppliers offer their goods only upon paying a deposit, meanwhile, among our clients, whom we supply with goods, payments to us are sower due to understandable reasons. As such, there are numerous challenges and they must be resolved here and now. This requires working capital. In this case, we made use of this loan because it is one of the few, which already truly works during this unusual period and furthermore, it was obtained particularly promptly – realistically, from the first contact to the funds reaching our account, it didn’t even take a week,” D. Prastienius says.
According to Finbee Verslui data, as of late, companies dealing in retail, also cafés, restaurants, farmers, dentists and transport sector representatives request loans. In April, loans have been issued to companies, which had turnovers last year ranging from 30,000 to 6,000,000 euro. The average requested loan sum is 10,000 euro.
“We hope that these more convenient and more flexible borrowing conditions, which are already in actual operation, will help businesses overcome their difficulties and successfully develop their operations. We will continue to seek for this and our other solutions to have a real impact in financing businesses suffering due to the COVID-19 pandemic,” Kęstutis Motiejūnas, Invega head says, “We continue to invite investors to contribute to the financing of businesses through our crowdfunding platform and thus help survive this period.”
Also, businesses can apply for partial interest compensation from Invega and regain up to 95% of paid interests every month. The funds loaned through the solution Avietė are offered to loan recipients under market conditions, that is to say, the loan is offered by applying the interest rates established by the crowdfunding platform.
Finbee Verslui has cut loan administration costs for all new loans until the end of the quarantine by 30 per cent.
We remind that based on usual conditions on the solution Avietė (that applied until now and will apply from December 31 this year onward), a single loan from it can amount to no more than 10 thousand euro and the crowdfunding platform finances no more than 40 per cent of the loan. The remaining part is financed through the funds of other financers.
The main goal of the solution Avietė is to create favourable conditions for small and medium-sized enterprises to obtain financing through crowdfunding platforms for their business project implementation, creation conditions for SMEs to borrow for risky business projects. In total, 5 million euro has been allocated to implement this solution.
