Start-up loan
The start-up loan provides a helpful boost in case of difficulties with starting a company due to a lacking start-up capital and where there is insufficient security for bank loans or an overly short operational history.
The start-up loan, issued in cooperation with Fund KredEx, is suitable for financing investments and operating capital of starting enterprises and businesses that have operated for up to three years. The objective of the loan is financing of investments and/or operating capital.
Unlike a conventional bank loan, fewer guarantees are required from an entrepreneur in the event of a start-up loan. Generally, personal surety of the loan recipient’s natural person owners is sufficient to secure the loan. If the loan is used for specific purposes, personal liability of the guarantor is 25% of the loan amount
Maximum term 60 months
Loan amount 2,000-100,000 Euros, of which up to 50,000 Euros may be used as operating capital APPLY FOR A LOAN
60 months
Show payment schedule
* Please note, that calculations are informative
Payment Schedule
| Nr | Date | Loan Amount | Interest | Principal Payment | Total Payments | Outstanding Balance |
|---|---|---|---|---|---|---|
Requirements
| Terms and conditions applicable to loan applicants | ✓ Companies with no more than 250 employees, registered in the commercial register no more than three years prior to the date of submitting their loan application to the Bank
✓ Annual turnover no more than EUR 50 million or annual balance sheet total no more than EUR 43 million ✓ Owners of the undertaking only include natural persons and/or incorporated entities for the purposes of the Commercial Code ✓ The undertaking’s equity capital adheres to requirements provided in the Commercial Code ✓ The undertaking, its owners and management board members have no overdue non-scheduled debts pertaining to state tax, and the requirement of submitting tax returns, provided in taxation laws, is duly performed ✓ The undertaking is sustainable and solvent, and the undertaking’s business plan is implementable ✓ At the time of concluding the loan contract, the undertaking, its owners and management board members have no overdue debts before the lender ✓ It has not come to the knowledge of KredEx or the Bank that the undertaking’s owner or member of its management board or supervisory board is subject to a binding punishment for a criminal offence against property or economic criminal offence |
| Terms and conditions of the loan | ✓ Refinancing of existing loans with the start-up loan is not permitted
✓ The loan is repaid in monthly payments based on a depreciation schedule. Upon termination of the loan period, the loan balance must be zero ✓ Payment relief pertaining to the principal loan amount is up to 6 months, yet not more than half of the length of the loan period |
| Obligatory financial indicator of loan applicant | ✓ The debt service coverage ratio (DSCR) following the issue of the loan is, conservatively estimated, no less than 1.2 |
| Indicative financial indicators of loan applicant | ✓ Current ratio is at least 1.1
✓ Equity capital following the issue of the loan is at least 15% ✓ With investment loans, self-financing amounts to 10% of the project’s cost ✓ Total financial burden does not exceed 70% of the loan applicant’s annual turnover |
| The start-up loan is not granted to the following activities and undertakings | ✓ Primary production of agricultural products, fishery and aquaculture and forestry
✓ Weapon, coal and tobacco industry ✓ Acquisition of transportation means and equipment used in road transportation of goods ✓ Financing of working capital of retailers and wholesalers ✓ Real estate project developments for sales and rental purposes. If real estate development is carried out for own purposes, incl. for activities unrelated to real estate developments by the undertaking’s subsidiaries and related companies, some of the premises may be rented out if the relevant rental incomes, excluding those from the said subsidiaries and related companies, do not exceed 30% of the loan applicant’s annual turnover ✓ Export related activities directly connected to exported quantities, to creation and operation of a distribution network or to other export based current expenses if state aid is provided by issuing of a guarantee ✓ Direct or indirect owners of the loan applicant include off-shore companies registered in low tax rate areas |
Applying for a start-up loan
✓ An application is submitted to the Bank
✓ In case of a favorable decision, the Bank submits to KredEx the documents required for financing/providing surety
✓ KredEx makes a decision based on the information received from the Bank. If necessary, additional information is requested from the relevant undertaking
✓ In case of a favorable decision by KredEx, the Bank prepares the relevant documentation and issues the loan.
In addition to Bank-required documents necessary to apply for a loan, the following documents must be submitted:
1. Financial forecasts for the next 3 years
2. Resumes/CVs of the company’s key personnel
3. Overview of existing obligations
Terms and conditions
✓ time deposit with TBB pank
✓ bail or warrant of the third person
✓ mortgage
✓ pledge of other kind of real estate
✓ pledge
✓ pledge of movables
✓ pledge of securities
✓ revenues into the account with TBB pank
4. Interest is calculated basing on the year of 360 days
For further information, please contact loan manager by sending e-mail at laenuhaldur@tbb.ee
Required documents
- Articles of association
- Authorisation and licenses, if required pursuant to low
✓ Copy of the identity document of the representative of the legal person
- Audited annual report for the previous financial year with an auditor’s report, if auditing is mandatory pursuant to law
- Quarterly balance sheets and income statements of the current year that are not older than 120 days
✓ Business plan, if required
In case of collateral security:
✓ An extract from the relevant register or Land Register regarding the collateral;
✓ Contract of sale, acceptance and delivery report, commercial lease contract, etc;
✓ The decision of property owner in writing to provide assets as security;
✓ The power of attorney to sign the guarantee contract, if the contract is not signed by the property owner or his legal representative;
✓ The valuation report of collateral issued by an appraiser accepted by the Bank;
✓ Insurance policy for benefit of the Bank, issued by the insurance company accepted by the Bank (to be issued after the conclusion of the guarantee contract).
In case of suretyship /guarantee:
✓ Copy of registry card from Commercial register of a surety/ guarantor;
✓ Copy of surety’s/ guarantor’s articles of association;
✓ If there is a supervisory board, resolution (consent) of a supervisory board to provide suretyship/ guarantee;
✓ Surety’s/ guarantor’s audited annual report for the previous financial year, if auditing is mandatory pursuant to law;
✓ Surety’s/ guarantor’s quarterly balance sheets and income statements of the current year;
✓ Copy of the identity document of the private person –surety/guarantor or copy of the identity document of the representative of the legal person- surety/guarantor;
✓ Application form for private person-surety;
✓ Application form for enterprices-surety/guarantor;
✓ Private person- surety’s six-month account statement certified by the bank if income is not received in TBB pank;
Real estate valuers
|
Name |
Official name |
Registry code |
Site |
| 1Partner Kinnisvara
Arco Real Estate AS DTZ Kinnisvaraekspert Domus Kinnisvara ERI Kinnisvara Kaanon Kinnisvara Teenused OÜ LVM Kinnisvara Ober-Haus Hindamisteenused Pindi Kinnisvara RE Kinnisvara Simus Kinnisvara Seven Kinnisvarakonsultandid OÜ Tõnisson Kinnisvarakonsultant Uus Maa Kinnisvarabüroo Colliers International Advisors OÜ Newsec Valuations EE Ühinenud Kinnisvarakonsultandid Aarete Kinnisvara Lahe Kinnisvara |
1PARTNER Kinnisvara Eesti OÜ
Arco Real Estate AS Osaühing Kinnisvaraekspert Osaühing DOMUS KINNISVARA ERI KINNISVARA OÜ Kaanon Kinnisvara Teenused OÜ LVM Kinnisvara OÜ OBER-HAUS HINDAMISTEENUSTE OÜ Aktsiaselts Pindi Kinnisvara RE Kinnisvara AS OÜ Simus Kinnisvara SEVEN KINNISVARAKONSULTANDID OÜ Tõnisson Kinnisvarakonsultant OÜ Osaühing KINNISVARABÜROO UUS MAA Colliers International Advisors OÜ Newsec Valuations EE OÜ Ühinenud Kinnisvarakonsultandid OÜ OÜ Aarete Kinnisvara Lahe Kinnisvara Hindamine OÜ |
11027723
11346894 10708639 10887990 10476241 10881504 10033331 10144929 10677258 10462629 10553527 10394023 10638376 10307231 11330404 11930446 11550241 11024541 14318125 |
www.1partner.ee
www.dtz.ee |
GUARANTOR`S CHECKLIST
PLEDGER`S CHECKLIST
A mortgage means when the loan is not paid back, the bank has the right to claim the sale of your the apartment or house (with the land).
Before you give your consent to set up a mortgage
✓ carefully consider if you are ready to take the risk of abandoning your own apartment or house if problems arise with regard to loan repayment
✓ decide whose obligations and what obligations in particular you are prepared to ensure
✓ you have the right to request draft contracts from both the notary and the bank – carefully study their content
✓ do not hesitate to contact the bank and the notary if you have any questions. Seek legal advice where necessary
When signing the notarized contract
✓ carefully listen to the notary’s explanations
✓ do not be afraid to ask if something is unclear
✓ make sure that the precise contract expresses exactly what you have agreed with the borrower and the bank
When the contracts are signed
✓ be proactive and monitor how the loan contract is being carried out. If the borrower does not answer your questions, make sure you address these questions with the bank
✓ always inform the bank of any changes to your contact details (address, phone number, email address). This is the only way you can be sure that important information reaches you in time
✓ carefully read the bank notifications and make sure you read all registered letters addressed to you
Where the borrower fails to fulfil his/her obligations, the bank then gives you an opportunity to perform the obligation. By performing the borrower’s obligations, you can prevent the sale of the pledged apartment or house, as well as avoid additional costs and litigation. You have the right to demand from the borrower compensation of any amounts paid by you on behalf of the borrower.
Requirements to insurance
GENERAL PROVISIONS
1.1. Property that constitutes the security for the Credit Agreement or the Object of Lease must be insured with the insurance company accepted by the Bank until the Customer completely fulfils its obligations arising from the Credit or Lease Agreement under the minimum conditions stated in the present Procedure, depending on the type of the property.
1.2. It is allowed not to require the Customer to present the insurance policy in the following cases:
1.2.1. a land plot without any buildings and without growing forest is used as the security for the Credit Agreement or as the Object of Lease;
1.2.2. a plot with buildings that are not valuable, used as the security for the Credit Agreement or as the Object of Lease
1.2.3. the credit/lease balance is lower than 10% of the cost of the immovable property that constitutes the security for the Credit Agreement or the Object of Lease;
1.2.4. according to a decision of the Credit Committee and/or the Supervisory board of the Bank.
1.3. The first beneficiary stated in the insurance contract shall be the Bank or AS TBB liising.
1.4. The minimum conditions stated below shall be included in the insurance policy submitted to the Bank or AS TBB liising, and the owner of the property, at a request of the Bank or AS TBB liising, must submit all data and documents related to insurance of the property (including the list of the property).
MINIMUM REQUIREMENTS TO INSURANCE OF THE PROPERTY
2. Minimum requirements to insurance of the Property that constitutes the security for the Credit Agreement or the Object of the Lease Agreement (except for motor vehicles)
2.1. The insurance amount can be one of the amounts listed below:
2.1.1. buildings and constructions (including flats) – the insurance amount many not be below their restoration cost;
2.1.2. movable property (including cars, equipment and agricultural machines) – the cost of purchasing a new property (including VAT);
2.1.3. other movable property (for example, ships) – the market value of the object;
2.1.4. goods – the cost of replacement.
2.2. Property may not be insured at a lowered price.
2.3. Property must be insured at least against the following risks or under the terms and procedure described in the Credit/Lease Agreement:
2.3.1. Real estate objects – fire, natural disaster (hail and storm, or hail and strong wind, etc), water leakage (or pipeline blow-out), vandalism.
2.3.2. Forest – package insurance that in addition to forest fire covers damage caused by natural forces and wild animals;
2.3.3. Goods (timber, metal), equipment, furnishing, cars and other movable property – fire, natural disaster, accidents at places of operation of machines, overturn and destruction of machines and illegal activity of third persons (theft, burglary and vandalism).
MINIMUM REQUIREMENTS TO VOLUNTARY INSURANCE OF MOTOR VEHICLES (COMPREHENSIVE INSURANCE)
3.1. Motor vehicles that constitute the Object of the Lease Agreement or the security under the Credit Agreement must be insured with comprehensive insurance at all times until the Customer completely fulfils all its obligations arising from the Credit or Lease Agreement according to the minimum conditions stated below:
3.1.1. Insurable value – the market value of the object;
3.1.2. Obligatory cover of the following insurance risks – traffic accident, natural disaster, fire, vandalism, theft;
3.1.3. Area of validity of the insurance contract – at least European countries (except for CIS countries).
MINIMUM REQUIREMENTS TO TRAFFIC INSURANCE OF A MOTOR VEHICLE
4.1. The motor vehicles that constitute the object of the Lease Agreement or security for the Credit Agreement must always have a valid traffic insurance until the Customer completely fulfils all its obligations arising from the Credit or Lease Agreement.
4.2. In case of movement of the vehicle beyond Estonia’s territory, it must be insured with and its driver must have the Green Card that confirms insurance cover also in the countries that are additionally stated in it.
CUSTOMER’S ACTIONS IN CASE OF AN INSURANCE EVENT
5.1. In case of an insurance event the Lessee, the Actual Car User, the Borrower or the Owner of the security for the credit must undertake all measures for saving the property and avoiding its further damage, and to immediately notify the Insurance company and/or the Bodies of Legal Protection and/or the Rescue Service of the insurance event, and to notify the Bank/AS TBB liising within three calendar days of the damage caused to the property or of the circumstances related to its destruction.
SUBMISSION OF THE INSURANCE POLICY
INSURANCE COMPANIES ACCEPTED BY THE BANK
When ensuring property pledged in Estonia in favor of TBB pank, all registered in Estonia insurance companies that have been licensed by the Financial Supervision and published on a webpage are accepted: