SEB Bank and Altum have signed authorization agreement for the issue of guarantees. This will help the bank speed up the processing of loan requests from small and medium-sized companies.
SEB is the first commercial bank with which Altum has signed such an agreement.
Financial guarantees are provided to companies that require additional security to receive bank loans. The agreement gives SEB Bank the option to provide companies with Altum guaranteed long-term loans, overdraft, turnover funds, letter of credit or bank guarantees.
The agreement also provides for sped up processing order for small and medium-sized companies with low risk assessment. Maximum bank loan amount has been set at EUR 500,000 and maximum guarantee – EUR 400,000.
SEB Bank board member Arnis Skapars: “Loan interest rates are at a record-low level right now. Economic activity is expected to continue growing at a stable rate for several years. This is why we see a clear increase in companies’ interest for opportunities to attract finances for their development projects. Time is money for businesses. This is why together with Altum we have found a way to speed up our work. The signed agreement offers us an opportunity to provide loans faster than ever before.”
Altum chairman Reinis Berzins emphasizes that the inflow of EU funds this year will help increase investment projects.
“Nevertheless, businesses still face situations when they do not have sufficient security to get funding from banks in a sufficient volume. This is why Altum has allocated significant finances for loan guarantees this year – more than EUR 150 million,” Berzins explains.
Economy Ministry’s deputy state secretary Raimonds Aleksejenko explains that loan guarantees will serve as a major tool for businesses to attract the necessary resources for their future development.
“Altum and SEB Bank’s solution will speed up the guarantee provision procedure and further improve financing accessibility for small and medium-sized companies. Economy Ministry will continue putting effort into finding additional solutions for making funding more accessible for business”, he said. (BNN/Business World Magazine)
