Loan financing

EIFO offers loans and guarantees to Danish companies across all sectors and in all stages of growth. You can obtain the loans directly from us or we can issue a guarantee which facilitates a loan from the bank.

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Loans and guarantees

In collaboration with Danish banks, financial institutions, leasing companies and investors, we offer loans and guarantees to Danish companies across all sectors and in all stages of growth. We provide special loans to start-ups in the very early stage of their development as well as the more mature companies planning to invest in operation, development or change of ownership. We can also offer loans to companies in need of capital for expansion and export. You can obtain the loans directly from us or we can issue a guarantee which facilitates a loan from the bank.

Newly established companies with a brief history

As the owner of a start-up company, you may find it difficult to obtain financing. It is often difficult to show the key financial figures and the performance history required to obtain a loan from a bank. This applies to start-ups at a very early stage with a fully developed product, high growth potential and their first customer pipeline or young entrepreneurs who already have products and customer pipelines but whose short existence makes it difficult to obtain financing to accelerate growth. In cooperation with financing partners, this is where The Export and Investment Fund of Denmark (EIFO) can step in with loan financing or guarantees to the bank which will help to facilitate your growth plans.

Mature companies with investment plans

EIFO can finance all kinds of operation and development in many well-established companies in Denmark. Perhaps you need to expand or modify your production or facilities, strengthen your sales capacities, train your employees, finance a warehouse, or finance a change of ownership.

Exporting companies

EIFO can, of course, finance export companies as well, companies who wish to conquer new or uncertain markets. Warehouses, new machinery, and facilities as well as expenses for raw materials and materials in general can put a strain on the liquidity. And success may lead to orders which may be difficult to fill without infusion of capital. Sometimes substantial amounts totaling millions may be required to strengthen the company’s growth. EIFO can provide the necessary financing in cooperation with a bank. We provide the guarantee required by the bank or another financing partner which will allow your company to expand beyond the borders of Denmark.

Different types of loans 

Direct loans from EIFO

EIFO offers loans directly to companies who, for instance, wish to invest in new production facilities, seek out new markets or go through a green transition, but who cannot obtain all the required capital from their bank, from investors or from leasing companies, equity or other sources

Small and medium-sized companies in most sectors and stages of growth can obtain loans directly from EIFO. The loan must be part of an overall financing solution which includes other financing partners and where EIFO can provide up to 50 per cent of the total financing.

The loan from EIFO is based on a higher interest rate than, for instance, the bank interest rate. The loan covers a higher risk, partly because the security package is subordinated to the financial institution.

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Business Angel matching loans 

A Business Angel matching loan is a product specifically targeting young Danish entrepreneurial companies. This credit line allows your company to supplement an investment from a business angel with a loan from EIFO. The individual Business Angel must be approved to become part of the scheme (see the list). When the loan facility should be brought into play is up to the business angel who has invested in your company.

Contact EIFO for more information.

Other types of direct loan financing

EIFO also provides other types of direct loan financing which can be part of a financing solution. These include,

  • Subordinated loans help mature and healthy companies strengthen their equity and increase their stability. A subordinated loan primarily helps to ease access to financing from financial institutions.
  • The venture debt loan is a loan for mature start-ups, who have already obtained equity funding from a venture capital fund.
  • The solvency loan which strengthens your equity, thereby helps to ease your access to additional financing.The solvency loan can only be offered in collaboration with a financial institution.
Obtain loans from the bank with a guarantee from EIFO

If the bank advisor seems reluctant when you introduce the ideas for your company´s growth, a guarantee from EIFO may get things started and help to increase your overall commitment in the bank anyway.

With EIFO assuming part of the bank’s risk, your company will be able to secure the necessary funds for materials, salary, and suppliers. This will allow you to accept more and larger orders from both Danish and foreign customers. The funds can also be used to invest in new machinery, production facilities or foreign subsidiaries and to offer guarantees to customers in the form of, for instance, prepayments.

EIFO can issue guarantees for small and medium-sized companies in most sectors and stages. The price of the guarantee depends on the company’s creditworthiness and will be charged on top of the bank’s interests and the cost of the loan. Contact EIFO for more information.

Requirements for your business

When we offer financing to Danish companies in the form of loans and guarantees, a number of requirements must be met.

  1. Your company must be creditworthy.
  2. Your company must help to generate economic growth in Denmark.
  3. EAs a minimum, newly established companies must have made their first commercial sales to customers.
  4. Your business must be conducted in an environmentally and socially responsible manner.
  5. Your company must, depending on the type of product provided by EIFO, be considered as an SME or a small mid-cap according to the EU's definitions thereof.
  6. DKK 372 million, a balance sheet total of up to DKK 320 million (annuall y) and must be independent of larger companies.
  7. EIFO always participates in financing solutions together with other financing partners, never alone.