“You don’t need to do it the hard way and alone” – business financing and advice help you grow and internationalize

You don't have to pursue significant growth and internationalization alone and at your own risk. The Team Finland network provides both guidance and business financing. Take a closer look at three key players and financing options and have an eye on the checklist at the end of the article. 

Funding gives a boost for growth and internationalization  

Do you and your company have an idea that brings significant new value to the market? Are you eager to reach ambitious growth goals, but feel uncertain about the next steps? Don't worry, you don't have to figure it out alone if you don't want to.  

Depending on your company's situation, you can get either a grant from the ELY Center and Business Finland, among others, or a loan guarantee from Finnvera. In addition to solid financing solutions, these organizations have valuable expertise in international markets, business development, and innovations which you can obtain from them when applying for financing. The know-how is at least as valuable to your company as the possible funding.  

"Coaching and various financing solutions are readily available through the Team Finland network, and we are happy to help. However, most SMEs have not used any of the services offered by public operators for internationalization. Finnvera wants to focus on this together with other Team Finland actors and help companies in their internationalization," says Markus Raaska, Finnvera's Regional Manager for Central Finland.  

Although receiving support and the Finnish mindset does not typically appear in the same sentence, utilizing external expertise provides boost for business development.  

“In my opinion, whenever a company is considering growth and internationalization, it would be useful to discuss the matter with experts in the Team Finland network,” encourages Markus Raaska.  

Business Finland offers co-financing for companies aiming for significant growth and internationalization 

"We finance companies aiming for significant international growth. This may involve developing a new service, product, or other innovation for the international market. The key is that the company has a genuine desire to grow strongly and turn its idea into reality," says Olli Penttinen, financing expert at Business Finland. 

SMEs can apply for co-financing through Business Finland. The grant is discretionary and competed for, but it typically covers about half of the total project costs. The financing application is submitted through Business Finland's financing service. 

International competitiveness and ambition are common features of companies that meet the funding criteria.  

“Our main target group is companies seeking international growth and they are striving to develop new internationally competitive products, services, and business models. The funding enables greater risk-taking and the implementation of projects that the company would not undertake with its own resources alone.” 

More detailed information on funding options, minimum criteria, and customer stories can be found on the Business Finland website: https://www.businessfinland.fi/en/for-finnish-customers/services/funding  

The ELY Center can provide co- funding for the international commercialization of innovations related to green transition and digitalization.  

Have you developed a solution related to the green transition or digitalization? Great, then your company can apply for co-funding for growth and internationalization through the ELY Center!  

"We support solutions that bring significant novelty value to the market: they challenge the existing and bring a completely new perspective," says Jouni Hynynen, Team Finland Growth and Internationalization Coordinator at the ELY Center in Central Finland.  

In addition to financing, the development of expertise and networks is key to success in growth and internationalization. When applying for financing, the development of the company's business is discussed as a whole.  

"Support and advice on how to bring an idea to action are often even more important than the money itself in the early stages of a company. It is common for the person who invented a new solution to not know how to take the idea forward on a large scale in practice. Where are the right networks, and what kind of expertise do I still need? That is why business coaching is an important part of the dialogue with the customer," says Hynynen. 

Find out more about the services offered by the Central Finland ELY Center here (website available only in Finnish): https://www.ely-keskus.fi/web/keski-suomen-yrityspalvelut/kansainvalistyminen  

Finnvera helps companies obtain financing by guaranteeing loans 

Unlike financing applied for through Business Finland and the ELY Center, Finnvera's loan guarantees are suitable for all types of investments that promote growth and internationalization throughout a company's life cycle. The aim of the guarantees is to share the risk and complement the financing market, i.e. to enable loans when a company would not otherwise be able to obtain them from commercial operators.  

What kinds of situations are guarantees suitable for?  

"Many different kinds. A guarantee can be used, for example, to enable product development required for growth or to hire a sales team focused on international markets," explains Markus Raaska.  

The Start Guarantee for new companies and the SME Guarantee for companies that have been operating for more than three years are standard products, and the company's own bank applies for them directly from Finnvera. For some guarantees, such as the Internationalisation Guarantee, the application is made directly through Finnvera's online service. You can find out more about Finnvera's guarantee options here: https://www.finnvera.fi/eng/financing-solutions/guarantees  

When considering growth, internationalization, and financing solutions, think about at least the following: 

• Novelty value: what new things can you invent or develop? 

• Ambition: could you think even bigger? 

• Financing criteria: does my idea meet the financing criteria for business subsidies?  

• Cash flow: consider your own financing during the project – grant only covers part of the costs, and you must have a credible cash flow during the project.  

• Follow-up: consider the financing of the afterlife of the funded project – after product development, you must have the resources and capabilities to continue developing your business and entering the international market. 

This article is part of the innovation ecosystem work of the Business Development Services of the City of Jyväskylä. We are carrying out ecosystem work with the support of public funding and within the framework of the Ministry of Economic Affairs and Employment's ecosystem agreement in 2021-2027, together with universities and other developers in the region. Funding is provided by the Regional Council of Central Finland (ERDF funding, Jyväskylä Growth and Sustainable Urban Development project 2022-2025).