Finnish Business Finance: All Your Options

Finnish Business Finance

Did you know that in Finland, the equivalent of a small business venture capitalist is called “the true Finn”? It’s true. And if you’re looking to start your own small business in Finland, it’s not only about working to make your idea succeed – it’s also about finding the right financing.

Tapping into the world of finance can be daunting for many entrepreneurs, but there are several ways to get funding for your business in Finland – from grants and loans to funding from the government or private investors.

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Financing Options

When it comes to financing, there are essentially two ways to go: You can secure the money yourself or you can partner with someone else for help. The former is more difficult and requires certain skill sets and financial resources on your part; the latter means you’ll have someone else cover some of the costs while sharing risks and rewards.

Here are some different sources of funding available in Finland:


A business loan can often be obtained from the bank where you have an account, but there are also other ways to secure a loan for your business, including from credit unions and funds as well as Finnish private lending institutions like Credinord and SVEA.

It’s important to find a lender that is willing to lend money without too many strings attached in order to help you create your own venture. In this way, you won’t need to pay back the loan immediately and you won’t be tied down with high-interest rates or fees on top of the low-interest rate charged by the lender.

Partnering with an Investor

The best way to secure funding for your small business is to find a partner that shares your risk and your goals. In Finland, there are several types of investors you can approach, including family, friends, angel investors, and venture capitalists.

Taking the Leap

Financing is a big part of starting a business in Finland. Before you start looking for investors or lenders, however, it’s important to define your goals and make a business plan that lays out what you expect to achieve. Then you can start searching for ways to finance the growth of your small business. Don’t be afraid – there are many ways in which you can secure the funds that’ll help make you realize your dreams.

Professional services

There are several ways to secure funding for a business (whether through grants or loans), and professionally managed companies are often the best option. These companies often have experience in helping companies with all sorts of issues – from market research to obtaining money. You can also find one of these professionals at the Finland Business Hub.

Grants and subsidies

There are many government-sponsored programs available in Finland that provide financing for a wide variety of things, from small and large businesses to innovation projects. In fact, there are around 40 different types of grants but only a few hundred people eligible for them – including entrepreneurs.


Financing for businesses can come from a variety of ways, including:

In-kind donations or grants from the government. Crowdfunding or public financing. Money from friends and family. Vouchers from private investors or foreign companies. Loans from banks and other financial institutions. Your own savings either personally or professionally, such as retirement funds, stocks, bonds… anything in a bank account, actually! Savings with friends and family (who are willing to invest). Personal assets that you could sell to help your business grow. You could even sell a car – if it’s worth more than a few thousand euros (I’ve heard of people doing this before in Finland).

What should you pick?

There are many types of financing available in Finland; here are some of the most popular:

Business loans from a bank: These are often called working capital loans, and they provide resources for entrepreneurs to keep the lights on and the business running. They can be used for a number of things, from marketing efforts to buying new equipment or developing a new product or service. Entrepreneurs can apply for business loans from banks or other financial institutions and land between €10,000 to €500,000 (some even offer up to €1 million).

Business loans from other businesses: If a business has excess cash available, they can be a good option to give to their employees or partners who may be starting up their own business. These loans generally require good credit and can be obtained up to €1 million (some give out as much as €3 million).

Financing from investors: Private investors are often interested in helping people who have an idea, or know someone who does, for several reasons: It’s “the next big thing” (even if it’s not); it’s a turnaround that will bring in money; there are risks involved; or because they like the individual/team and want to help them build something that can grow and make money over the long term. With investors, you can get as much as €400,000 – €500,000 (or even more).

Government-sponsored financing: A few government-sponsored programs are available to small businesses in Finland that offer funding for development projects and other growth opportunities. These programs offer up to €300,000 to help companies grow – often with additional resources from private investors and grants.

Seller Financing: If a business has assets (like equipment), they can sell those assets directly to another business for a lump sum of cash – this is called “seller financing”. This cash can be used by the new business owner to buy more equipment or develop their company quicker than before.

SBA Loans: The SBA Loan Program is a way for small businesses (with less than 500 employees) to capitalize on their creditworthiness. Generally, these loans have a maximum of $5 million and are offered by banks, SBA-approved intermediaries, and Certified Development Companies. This loan program is available to companies in all 50 states, and loans can be used for a variety of things, including equipment purchases and working capital.

Grant Funding: Grants are given to a company based on the project they are working on, while the money is often provided by private investors or other funding sources such as the government. Projects can range from business growth projects and expansion to renovation projects and training programs – anything that will help grow your business. Grants in Finland range up to €300,000 but it’s important to note that grants may not always be available for every project.

In Finland, you have many options for business financing. However, with this responsibility also comes great opportunities. Your business can almost completely count on financial support from the government and banks. If you just have a brilliant idea, take action and don’t wait for someone to hand you a complete solution. Encouraging entrepreneurship will lead us to a prosperous future where everyone has a chance to contribute their skills and creativity.


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