SME Finance, a Lithuanian-based fintech startup and leading fintech platform for non-banking financing in the Baltic states, today announced it has received €80 million in back from the European Investment Bank (EIB) to support small and medium-sized Lithuanian, Latvian, and Estonian enterprises in the transport, retail, wholesale, production, and services sectors. The investment is the largest EIB investment awarded to a fintech lender.
The first wave of funding from the EIB is expected to reach businesses by the first half of 2021. SME Finance plans to offer business financing with 4 to 8 percent annual interest rates. The maximum factoring limit granted to individual enterprises will be capped at EUR 5 million.
SME Finance was founded in 2016 to address an identified funding gap in the financing of working capital for SMEs and midcaps. Since its establishment, the company has financed invoices worth more than 459 MEUR, has provided financing services to 500 clients, and has raised more than 114 MEUR from local and international investors. SME Finance now has 80 MEUR of available capital and provides short and long-term loans, factoring, and leasing. The startup has partnerships with world-leading providers of trade-related insurance solutions, including Euler Hermes and Coface.…
