A survey carried out among businesses with fewer than 10 employees has shown that Estonian micro-businesses have survived the 2020 coronavirus crisis better than initially feared. More than 40% of the businesses surveyed stated that the crisis has not had any impact on their turnover, while almost a quarter have only seen a 20% decrease in turnover.
Holm Bank AS, based 100% on Estonian capital, started providing services on the Latvian and Swedish markets. In Latvia, Holm offers hire-purchase services, hire-purchase cards, and consumer loans under its own brand, and on the Swedish market, the company is launching a digital credit card solution as its first service.
Holm Bank AS, which expanded to Sweden during the crisis, has grown its portfolio significantly.
November is the high season of budgeting and a lot of companies are currently considering their investment needs for the following year and options for getting financing. According to Aron Jäger, Financing Business Manager of Holm Bank, this is the reason for why the number of companies applying for a business loan has significantly increased over the last months.
As the amount of the monthly interest payment for a limit loan depends on the part of the loan that has been used, companies engaging in the smart management of cash flows can – in comparison with a regular business loan – achieve significant interest-related cost savings with a limit loan, explains Aron Jäger, B2B Financing Business Manager at Holm Bank.
According to Aron Jäger, B2B Financing Business Manager at Holm Bank, small businesses have not lost interest in tackling larger-scale investment projects despite the current difficult economic conditions. In order to encourage companies to implement development projects with a longer payback period, Holm offers companies a loan secured by real estate, i.e. a mortgage loan, with a more favourable interest rate than a traditional small loan and a repayment period of up to 10 years.