Finance company Capitalia has developed new product – start-up loan. It is friendly opportunity for new entrepreneurs to loan up to LVL 1000 without additional collateral requirements and an initial interest rate on the loan is 0%.

Company Capitalia offers investments and loans to small and medium-sized companies, and newly established or establishing companies. Currently attraction of assets and loans from banks are a time-consuming procedure. It requires development of business plan, submission of guarantees such as real estate. Latvia University of Agriculture and Employers’ Confederation of Latvia conducted research about micro-crediting in Latvia, the research shows that the current financing offers for start-up of entrepreneurship have disadvantages. As a result one of the conclusions are that in Latvia “micro-crediting programmes need to be improved by decreasing bureaucracy obstacles and optimizing the process of receiving credit”(Research report “Micro-crediting in Latvia: Opportunities and Restrictions”, 2011).

Depending on previous experience of entrepreneurs and evaluation of business idea, Capitalia provide full loans in volume LVL 100 to 1000, without additional collateral. Initial rate of loan is 0%, nevertheless it rises as company flourishes, and the principal amount has to be paid within 2 years. This repay schedule helps entrepreneurs to plan their cash flow in the start-up period, and allow company to repay loan, when it has taken off.

“We consider that this loan will simplify and promote the access to start-up loans for entrepreneurs, and hopefully will encourage development of new and successful companies in Latvia”, says manager of Capitalia Juris Grišins.

In cooperation with Mentoring Club of School of Economics in Riga, the clients of Capitalia will also receive advices and mentoring. The aim of start-up loans is to provide financial and intangible support, to encourage, support and educate authors of ideas for starting their entrepreneurships. More about the criteria and application – home page of Capitalia:

www.capitalia.lv/lv/finansejums/starta-aizdevums-uznemumiem

Capitalia is a finance company that provide wide financing for equity and loans, and offer consultations on attaining finances, and also in business buying/selling operations.