Tag ‘SME finance’
CUBESPACE, an SME from the Czech Republic, has been building schools, family houses, sport halls and hotels using the modular building system. In 2017, the company decided to expand and produce rental fleet containers. As CUBESPACE Managing Director Martin Kokta makes clear: “We wanted to start cooperating with foreign investors who want to rent property in the EU. CUBESPACE builds and remains the owner of these buildings (usually offices), and rents them to investors.”
To invest in more properties and attract more investors, CUBESPACE needed a loan.
Equa Bank offers a range of retail and corporate banking services. The bank agreed to lend CUBESPACE Kč35 million (ca. €1.4 million), 50% of which was guaranteed by COSME, the EU programme established to help small and medium-sized enterprises (SMEs).
Thanks to this, CUBESPACE increased its production by half, doubled its number of employees, started 2-shift production and gained access to a wider client pool.
The loan was possible based on a 2016 agreement signed between Equa Bank and the European Investment Fund (EIF). This agreement will allow Equa bank to provide Kč1.8 billion (ca. €66.5 million) in loans to Czech SMEs over 2 years.
Take it from Cubespace, the agreement brings results. As Equa Bank’s Head of Business Banking Department Vojtěch Záškodný explains: “We have provided loans to about 75 SMEs, backed by the COSME Loan Guarantee Facility so far. Many of the clients would not have reached the requirements had it not been for the guarantees provided by the EIF.”
Businesses can contact selected financial institutions in their country to access EU financing: access to finance website.
Read the original article on the COSME website.