Solution of Šiaulių Bankas for innovative enterprises is recognized as the Service of the Year

2018-05-11

At annual awards called Service of the Year facility of Šiaulių Bankas for business InnovFinn has taken the Grand Prix - it has been recognized as the Service of the Year and also won the nomination of  the Financial Service of the Year.

The InnovFin Financing solution is intended to foster innovation development by facilitating innovative business through attractive terms of financing. Innovative small and medium-sized businesses as well as mid-caps in Lithuanian may take advantage of the aforementioned instrument.

"The future of Lithuanian business is based on the wider application of innovations - we already see that more and more Lithuanian companies are modernizing their activities, introducing innovative solutions and thus enhancing their competitiveness. By using InnovFin's solution, companies can finance business development and technological advances at extremely favourable conditions. We are glad to receive an honourable assessment which is the best incentive for us to continue to look for exclusive financial solutions for our customers, " said Mindaugas Rudys, Head of Service Development Division of Šiaulių Bankas.

While granting the award to Šiaulių Bankas at the annual ceremony Vice-Minister of Finance Loreta Maskaliovienė  admitted being pleased about the fact that innovations were supported and received investments not only from venture capital funds that are associated with innovation, but also from a more conservative banking sector.

Using the InnovFin facility, companies can invest in business development, deployment of more efficient processes, more advanced production equipment or the application of new technologies. According to M. Rudys, the InnovFin service is especially attractive for companies facing collateral shortages and not always able to qualify for traditional bank financing. In addition, this measure is distinguished by lower interest rates compared to traditional forms of financing.

"InnovFin is more effective when compared to other forms of state or European business aids such as grants as it promotes entrepreneurial skills and corporate maturity. Bank's financing is more binding on the business as the loan must be repaid. As a result, companies are more accurately thinking over the process of how to invest money in order it gives them a higher return, "said M. Rudys.

Funding with InnovFin facility is available in various forms - in credit, credit line or financial lease. Companies can borrow from 25 thousand up to 7.5 mln. euro.

The InnovFin Guarantee facility is financed by the European Union under program Horizon 2020 and the European Strategic Investment Fund set up under the Investment Plan for Europe. By providing a loan with InnovFin's guarantee, 50% credit risk is assumed by the European Investment Fund. Such a guarantee of the Fund is the European Union incentive for the development of innovative enterprises.

The project Service of the Year is initiated by the Lithuanian Business Confederation representing services, trade and high-tech companies and associations.