Financing a start-up company
As an effective means of financing their new business, start-up enterprises have the opportunity to receive a start-up grant from Enterprise Estonia, European Union structural assistance, or a start-up loan secured by KredEx.
The start-up grant is a national grant for start-up entrepreneurs who need additional financial means for starting a sustainable business. Start-up grant can be used for acquisition of fixed assets and performing marketing activities. Read more about the start-up grant conditions at the Enterprise Estonia website.
If you are seeking financing for your business plan, it would be wise to look into the aid measures offered by structural funds and local governments. For instance, start-up assistance for investments into non-current assets, aid for training personnel and a wide array of measures whose conditions should be reviewed and, if suitable, applied for.
The following areas are supported from structural funds: education, labour market, research and development, private enterprise, information society, administrative capacity, environmental conservation, energy sector, transport, regional and local development, health care and social welfare.
County development centres will help you find support for your projects, and the basic consultation service is free of charge. The development centres offer you information from the development centre on structural fund measures and, if necessary, about other potential sources of support as well as private sector consultants and the services they offer.
Start-up enterprises and small and medium-size enterprises that have been operating for up to three years can apply for a start-up loan for going into business, which will be secured to up to a 75% extent by KredEx.
Compared to ordinary loans, the advantage of start-up loans is the fact that you, as an entrepreneur, do not have to take as high a risk with your personal assets. Above all, the start-up loan will be of assistance to companies that are only starting their activity and find it difficult to receive a bank loan due to a relative lack of credit history. To obtain a start-up loan, applicants can contact a bank, Enterprise Estonia or KredEx.