National crisis response measures are a great help to many companies all over Estonia, but more and more companies still face a problem where they do not qualify for grants due to the size of the company, business prospects in the coming months, or other business specifics.
Many banks offer business loans to overcome difficulties, but the risks should be carefully considered before taking a loan, so as not to find oneself in an even more difficult situation after six months.
‘The crisis has forced many companies to rethink their business models to create added value for keeping their businesses alive and find new sales opportunities. Such changes are usually associated with risks and there is no certainty that they will bring the expected return,’ says Rauno Klettenberg, CEO of Holm Bank AS, who recommends assessing the reasonableness of the loan as an aid measure on the basis of the purpose for which the loan is taken:
According to Klettenberg, the most sensible financing solution is when the company’s representative is ready to introduce the situation of the company to the bank as openly as possible and does not try to hide its risks from the bank for fear of receiving a negative decision. ’Our primary interest is to help our clients overcome difficulties and get the business back on track, while protecting them from additional risks – we can only do this if there is mutual trust in the relationship with the client,’ he affirmed.