The automatic combined product facilitates access to bank loans for SMEs
(as well as self-employed), including starters & restarters
When some companies are seeking funding for their projects, whether for a new design, development or to take over another company, banks are prepared to get involved but do not want to take on all of the risk associated with the project themselves.
The SOWALFIN Group facilitates access to bank loans for SMEs by offering subordinated loan and guarantee/counter-guarantee solutions from mutual guarantee companies.
The automatic combined product suit small companies (as well as self-employed), including starters & restarters with fewer than 50 FTE and whose total balance sheet or turn-over <= € 10 millions
The bank does not need to get prior agreement from the SOCAMUT to offer its loan. The process is totally automatic.
The bank simply tells the SOCAMUT (via a form on its Intranet) that it is claiming its guarantee and/or its loan.
Within 4 days of the request, the SOCAMUT confirms the guarantee with the bank and sends the business owner the loan agreement (by email) to release the funds.
Focus on the process:
• An AUTOMATIC guarantee of 75% for a maximum bank loan of €50,000
AND/OR
• An additional subordinated loan of a maximum of 50% of the bank loan and a maximum of €25,0000
€ 75,000 of funding, which can be incorporated into a financing package of a maximum of €250,000
The product has been recently modified addressing small companies (and not only micro-companies) and increasing thresholds (from €37,500 funding to € 75,000 funding).
Resources needed
2 operational FTE for 600 products/year and an outstanding portfolio of 2.220 products
Evidence of success
600 products/year and an outstanding portfolio of 2.220 products
Automatic product for the banks simple and fast, reduces significantly “ administrative burdens”
Beneficiaries in all sectors
Few FTE required for lots of transactions
Short duration : 4 to 5 years
Bank implicated : even if for a small %, reduces the risk of failure en ensuring revolving character of this product
Potential for learning or transfer
This product is based on an agreement with banks and banking sector. It is really simple and fast. The process is totally automatized and needs no analysis from Socamut’s financial analysts.
It provides a first step help to starters as well as restarters to create or develop their economic project.
Tags: Support, SME, Micro, Finance
