Small companies have actively used the opportunity to attract financing for development – 30% big increase in the first half of 2022 – Market News

Latvian small companies whose annual turnover does not exceed 2 million euros have actively used the first half of this year to attract funding. During half a year, Swedbank has given out 30 million euros to such companies. This is 30% more than in the same period last year.

There has been particularly rapid growth in the financing of small agricultural companies, where the amount of financing issued has increased by 48% compared to 6 months of last year. The support of the Rural Support Service for the purchase of equipment and the implementation of other projects, which is available to companies working in agriculture this year, had a great impact.

As Swedbank’s Head of Business Financing Support, Jānis Paiders, explains: “Overall, this is positive news, as it shows that businessmen look to the future with optimism and are ready to invest in the growth of their company. As a financial institution that strives to support the development of the national economy, we are happy to be a reliable partner for companies, which are the backbone of the overall economy. In the future, we hope to see the same rapid interest of businessmen to realize their business ideas and increase the overall well-being with higher added value”.

In the first half of this year, the biggest interest in attracting financing for the development of the company, apart from agricultural companies, has also been shown by companies operating in the field of commerce, professional services and production or IT.

When forecasting the interest of businessmen in the remaining months of the year, the general uncertainty in the market should be taken into account. Rising inflation, interest rates and energy resource prices are putting a strain on businessmen’s cash flows, as well as affecting overall purchasing power. At the same time, this is also a grateful time for high-quality investment projects that allow you to invest in improving your competitiveness and reducing costs. Using different financing tools, such investments would allow to deliver or produce the same amount of goods, consuming less energy.

Swedbank

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