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How the SME's are financed is a big question. Bigger than you think. If we look the growth sector, no problemos. TEKES, Finvera and everybody are there. If they are already big TEKES gives grants, if they are small TEKES gives loan, taking a risk. But still quite funny guys who can loan gets grants and vice versa.

The current situation in Finland is really bad for the companies. Funding is almost impossible to get. Banks are very careful, they don't take any risks. You have to have minimum of 150% warranties and Excel-sheet which shows a hockey stick.

This has created an interesting business case. You can participate to kind of crowd funding, loan to the company. Typically the company is a AA+, loan is from 2 to 4 years. Interest rate for loan for the total period is 22-44%! Most likely the banker who organizes the loan takes 2%+. I've seen 3 cases. In theory, if everything stays like in the past companies can handle the deal, but no surprises allowed. Like they say, it is not the stupid who asks...

No we come to the real stuff. It is estimated that coming years about 50000 companies will need to do the change of the generation. Entrepreneur is going to retire. Statistics shows that majority of our business' are micro ones, less than 20 employees. Lets play with numbers. If in these companies are working with owner is 3 persons, we are talking about 200000 jobs! Owner is not driving Rolls Royce, but he/she is getting bread and butter from the company. So are the 3 employers. Owner wants to sell his/hers company and somebody wants buy it, good business, good reputation and steady customer base. Where to get the funding for this transaction? Banks? No hockey stick. TEKES? No new innovation. Finvera? No growth business. No possibilities to the crowd funding with mentioned interest rates. So, 200000 jobs gone!
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