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Funding for New Businesses

Starting a business may require outside funding. Fortunately, the funding outlook at OP and in Finland is bright.

Have you already started your business operations, or is your business idea still in the desk drawer? If there ever was a right time for good business ideas and new companies, it is now. Becoming an entrepreneur is a bold decision, and we at OP wish to support your journey as an entrepreneur.

A key condition for starting a business is smart funding that achieves results. As a starting entrepreneur, you should visit your bank as early as possible to discuss your business idea and your company's needs for loans and funding.

Equity and outside funding

As a rule, a new company initially finances its operations with equity and outside capital, and later with cash flow.

Financing business operations with equity does not incur loan repayment expenses or interest expenses, which reduces the overall expenses of the company especially in the beginning. Equity starts to yield returns as an investment when your company succeeds and generates profit. Outside financers also pay attention to the equity that the entrepreneur and the shareholders have invested in the company. When sufficient funds have been invested in the company, it is easier to convince potential financiers to commit to the business operations.

A beginning entrepreneur almost always needs outside capital from external financiers, the most natural of which is often a bank. In addition to a plausible business idea, external financiers frequently require collateral for their loans. The most common collateral is real security or various guarantees. Finnvera's startup guarantee is a significant guarantee for your bank loan, and your bank can apply it from Finnvera on your behalf.

OP also offers versatile financing options for vehicles and heavy equipment

A successful financing solution supports the operation and goals of your new company. Our versatile financing solutions are always tailored to the circumstances and needs of your company in collaboration with you. If your new company is a corporation (Oy, Ky, Ay / Ltd., Limited partnership, Partnership), we can also offer, as part of other financing, leasing funding for the procurement of vehicles or heavy equipment. In such a case, the item procured also serves as the guarantee.

Finnvera's startup guarantee and startup grant from the TE office

Finland offers plenty of support for starting up a company. The special financing company Finnvera offers a startup guarantee to help new companies obtain financing. Applying for the startup guarantee is easy via OP. To see Finnvera's other financing services, such as the Entrepreneur Loan for a limited liability company, see Finnvera's website.

Your regional Centre for Economic Development, Transport and the Environment (ELY-keskus) may also provide you with start-up financing and subsidies. In addition, verify from your local TE Office whether you are eligible for a startup grant. The startup grant secures some of the income and everyday life of a person becoming an entrepreneur when their company is still in its infancy.

Remember to apply for the startup grant from the local TE Office before establishing a company. For more information, see the Enterprise Finland website by the Ministry of Employment and the Economy.