Frequently asked questions
Business loan, Business loan with MES and KredEx surety, Mortgage loan, Limit loan
Legal entities registered and operating in Estonia, legal persons in public law, and self-employed persons (except self-employed persons who have been operating for less than 12 months) can apply for a business loan from Holm.
Holm’s business loan can be used both to start a company’s business and to expand it. Many of Holm’s business customers have used business loans to buy, for example, seasonal goods, machinery, or equipment related to the company’s operations.
To enter into a Holm business loan agreement, a loan application must be completed:
on Holm’s website or
in Holm’s self-service environment or
by sending an e-mail to arilaenud@holmbank.ee
on Holm’s website or
in Holm’s self-service environment or
by sending an e-mail to arilaenud@holmbank.ee
To apply for a business loan, you must submit a loan application approved by the company’s representative, the company’s financial statements (balance sheet and income statement for the last completed financial year, balance sheet and income statement for the last full quarter of the current financial year), and the ‘Legal entity form’. In order to obtain a complete overview of the company’s economic activities, also submit statements of the company’s bank account(s) for the 6 months preceding the submission of the application.
If the loan is secured by a guarantee from the owner of the company or a member of the management board, the guarantor must also sign the ‘Guarantor’s form’ and attach the guarantor’s bank account statement for the last 6 months. In order to make a loan decision, Holm may ask for additional documents or information that may be necessary for financing a specific project.
If the loan is secured by a guarantee from the owner of the company or a member of the management board, the guarantor must also sign the ‘Guarantor’s form’ and attach the guarantor’s bank account statement for the last 6 months. In order to make a loan decision, Holm may ask for additional documents or information that may be necessary for financing a specific project.
One of the main purposes of applying for a business loan is to create additional value for the company (for example, new machinery, equipment, or expansion of the product range, etc.). Based on its legal obligations, Holm would like to know what additional value the applied business loan creates for the company.
In a changing economic environment or in the case of a fast-growing company, it may become apparent that the financial statements (balance sheet and income statement) of the last full year no longer adequately reflect the economic activities of the company. Therefore, when applying for a Holm business loan, it is also necessary to submit financial statements for the last full quarter of the current financial year.
Holm’s business loan is secured primarily by a guarantee from a member of the company’s management board or owner, a guarantee from a legal entity economically related to the company, or a mortgage on real estate belonging to the company or a person closely related to the company, or guarantees through the KredEx Foundation and/or the Rural Development Foundation (MES).
Pursuant to law, when applying for a business loan, the bank is required to request the ‘Legal entity form’ to be filled in, which sets out the main information about the company and its owners. In addition, banks are required to act in accordance with the ‘know your customer’ principle to avoid the risks associated with money laundering and terrorist financing and to ensure the soundness and transparency of the economic environment.
Holm is happy to finance start-ups. Start-ups do not have a history of economic activity, which is why Holm mainly evaluates the sustainability of the company’s owners and management, as well as the soundness of the business plan.
Legal entities registered and operating in Estonia, legal persons in public law, and self-employed persons (except self-employed persons who have been operating for less than 12 months) can apply for a business loan from Holm.
Banks must collect information on the beneficial owner to fulfil their obligations under both the Money Laundering and Terrorist Financing Prevention Act and the Tax Information Exchange Act.
In its activities, Holm is guided by the principles of responsible lending and must also assess the guarantor’s solvency. The solvency of the guarantor must be sufficient to fulfil the obligations arising from the guarantee agreement. In order to assess the guarantor’s solvency and enter into a guarantee agreement, Holm Bank needs additional information about the guarantor contained in the ‘Guarantor’s form’.
Holm is interested in the origin of self-financing because self-financing shows the company’s ability to raise capital. In particular, the bank wishes to know whether the self-financing comes from the owners of the company, is related to the extension of the payment term of the suppliers (including overdue debts), or comes from other creditors.
Pursuant to law, financial institutions are obliged to comply with due diligence measures, which also include compliance with the ‘Know your customer’ requirements (https://pangaliit.ee/anti-money-laundering). One of the basic materials is the customer’s bank account statement, which provides an overview of the customer’s daily economic activities.
In the company’s economic activities, situations may arise where the company’s liquidity is limited, which results in payment difficulties. The most important thing in case of payment difficulties is to inform Holm Bank as soon as possible. The company’s arrears and the company’s entry into the Payment Defaults Register can be prevented in cooperation with the bank, in the course of which the most optimal solution satisfying both parties is reached.
A surety is a security given by a guarantor. The guarantor is the person responsible for the loan taken by the borrower. If the borrower fails to repay, the guarantor is obliged to pay the debt. In the case of several guarantors, all guarantors are jointly liable. The guarantor can be a citizen of the Republic of Estonia or a person with a permanent residence permit in Estonia at least 18 years of age, who must have a secure income and must not be in arrears.
Fixed-term deposit for companies
Legal persons cannot open deposits in the self-service environment. To open a deposit, fill in the application for a business client deposit on our website and we will contact you.
Deposits at Holm Bank are protected by the Deposit Guarantee Sectoral Fund of the Guarantee Fund (Tagatisfond). If necessary, deposits are reimbursed with interest, but not more than in the amount of 100,000 euros per depositor. Read the depositor information here.
Pursuant to law, when applying for a deposit, the bank is required to request the ‘Legal entity form’ to be filled in. The form includes the main information about the company and its owners. In addition, banks are required to act in accordance with the ‘know your customer’ principle to avoid the risks associated with money laundering and terrorist financing and to ensure the soundness and transparency of the economic environment.
Pursuant to the Money Laundering and Terrorist Financing Prevention Act, we have an obligation as a bank to obtain a sufficient overview of the client and to know, based on the information previously known to us about the client, whether the amount deposited is ordinary or not. When we inquire about the origin of funds, we may ask the client to provide additional information and documents to verify the origin of the funds.
In order to comply with the due diligence requirements set for us as a bank, we ask you to identify yourself via video in the Veriff OÜ environment. A device with an internet connection and a working camera is required for verification. Have your identity document ready and follow the on-screen, step-by-step instructions. We will send you an e-mail with a personal link for verifying your identity.
To terminate the deposit prematurely, please send us a corresponding application in the self-service or by e-mail at info@holmbank.ee. We will then make a respective decision within 14 days after receipt of the application. We would like to draw your attention to the fact that upon early termination of the contract, you will lose the interest already earned during the deposit period and, pursuant to the general terms and conditions of the fixed-term deposit agreement, we may claim a fee for premature payment of the amount deposited in the extent of 2% of the amount deposited.
Leasing
Legal persons, legal persons governed by public law, and sole proprietors (excluding sole proprietors who have operated for less than 12 months) who are registered and operating in Estonia can apply for a lease from Holm.
Holm leasing for companies can be used to grow and expand the company's business. Many of Holm’s business customers have used to lease, for example, seasonal goods, machinery, or equipment related to the company’s operations.
If you wish to apply for a lease and enter into a contract with Holm, turn to any of our partners: NORD Varaliising OÜ, RK Varaliising OÜ, Fairown Finance OÜ.
In order to apply for a lease, you must submit a lease application verified by a representative of the company, financial reports of the company (a balance sheet and an income statement of the previous economic year, a balance sheet and an income statement of the last full quarter of the current financial year), and a legal person form. In order for us to get a full understanding of the economic activities of your company, you must also submit your company’s bank statement(s) for the previous 6 months. If the deposit for the lease is a surety by an owner or a board member of the company, they must also sign a surety form and add a personal bank statement for the previous 6 months. For the purposes of making a decision, Holm might ask for additional documents or data that may be relevant in financing a specific project.
One of the main purposes of applying for a lease is expanding the range of goods or products (for example, new machines or devices, expanding the range of products, etc.). For the purposes of legal obligations, Holm wants to know how the lease will create additional value for a company.
In the changing economic environment and for rapidly growing companies, a financial report of the previous full year (a balance sheet and an income statement) may not adequately reflect the economic activities of the company. For this reason, applicants must also submit a financial report of the last full quarter of the current economic year when applying for a lease from Holm.
The primary security of a transaction done with the Holm lease is a right-of-use asset. Before you start renting a property, it must be appraised by an appraiser who is acceptable to Holm. The primary security may be complemented by a surety by the owner or a board member of the company, a warranty by a legal person who is economically involved with the company, or a mortgage on a real estate that belongs to the company or a person closely associated with the company.
Pursuant to law, a bank is obligated to demand that the applicant fulfils a legal person form and writes down the main information about the company and its owners. Additionally, the bank is obligated to ‘know its customers’ to prevent the risks of money laundering and terrorism financing, and to guarantee that the economic environment is trustworthy and transparent.
Holm is happy to finance start-ups. As start-ups cannot present a history of economic activities, Holm mainly assesses the owners of the company, the sustainability of the management, and the strength of the business plan.
Legal persons, legal persons governed by public law, and sole proprietors (excluding sole proprietors who have operated for less than 12 months) who are registered and operating in Estonia can apply for a lease from Holm.
Banks must know about the real beneficiary in order to perform its obligations established in the Money Laundering and Terrorist Financing Prevention Act.
Holm follows the principle of responsible lending and must assess the solvency of the surety. The solvency of the surety must be sufficient to perform obligations arising from the contract of suretyship. Holm Bank needs the additional information written in the surety form to assess the solvency of the surety and conclude a contract of suretyship.
Holm wants to know the origin of self-financing because it shows the company’s abilities to raise capital. Of main importance is the information of whether self-financing is from the owners of the company, related to extending the term of payment of contracting entities (e.g. overdue arrears), or comes from other creditors.
Pursuant to law, a financial institution is obligated to perform due diligence measures which also include the requirement to ‘know your customer’ (https://pangaliit.ee/rahapesu-tokestamine). One of the sources for that is the bank statement of the client which provides an overview of their everyday activities.
There may be circumstances when a company’s liquidity is limited, resulting in financial difficulties. If such circumstances arise, the most important thing is to inform Holm Bank at the earliest opportunity. Accumulation of arrears and being entered into the Credit Register can be prevented in cooperation with the bank, and we will reach the optimal solution that satisfies both parties.
Holm Bank AS
Posti 30, 90504 Haapsalu
Commercial Register code
14080830
