Bankinter will help finance SME’s receivables with the ICO Covid-19 Line and new European Investment Fund loans
The bank will finance receivables (‘factoring’) for SMEs and foreign currency loans, with state guarantees, to help their financial situation caused by the pandemic.
It will offer 162 million euros in new loans as part of the EIF-COVID-19 agreement, with special guarantees to provide small and medium enterprises with liquidity.
Bankinter is taking new measures to help the business of SMEs and sole traders in the current situation caused by COVID-19. Now, it will offer small and medium enterprises and sole traders financing for their invoices to collect receivables early. This type of ‘factoring’ is part of the ICO COVID-19 line, along with the working capital loans Bankinter set up from the beginning.
For this type of financing, the bank will have a guarantee of 80% for new and renewed loans to SMEs and sole traders, 70% for non-SMEs (for new loans) and 60% for renewals.
Under the umbrella of the ICO COVID-19 line, Bankinter is also offering new multi-currency loans for SMEs with operations abroad. These loans, which companies can take out with a special digital signature for the ICO line, have a maximum term of five years.
Furthermore, the bank has set up new loans under the European Investment Fund’s (EFI) COVID-19 agreement to help provide SMEs with liquidity. Therefore, Bankinter will offer 162 million euros in new loans backed by the EFI.
Companies with up to 3,000 employees can apply for them in order to cover working capital needs, with a 60% guarantee; or to purchase assets essential to everyday operations (provided that they come from EU member states), with a 50% guarantee.
In March, Bankinter set up its shock plan with measures to help soften the financial blow of the pandemic to households, with payment holidays on mortgages and consumer credit, early payment of public assistance and pensions, in addition to special credit facilities for companies (not only as part of the ICO COVID-19 Line) with grace periods, relaxed reverse factoring terms for leasing agreements and several other options.