Business loan

Holm’s business loan is for companies that want to boost their commercial activities.

Loan amount

€10,000-€25,000

Contract period

up to 5 years

Self-financing

from 0%

Contractual fee

€250

A small business loan has flexible terms and conditions, and a company can usually get a loan within a few days. The guarantor of a loan can be either a private or a legal person. You can apply for the loan and perform all the necessary actions via our self-service. Our specialist personally reviews all applications and will get in touch with you if necessary.

You are also welcome to book a consultation. If you would like advice or if you have any questions about your application, please e-mail us at [email protected].

Intended purpose

for small investments

Loan amount

€10,000–€25,000

Self-financing

from 0%

Length of loan contract

up to 5 years

Payment schedule

up to 5 years

Grace period

up to 6 months

Contract fee

€250

Suitable collateral

surety of person(s) related to the company, or a combination of all above

Requirements for the borrower

a private limited company or a public limited company registered and operating in Estonia; liquidation or bankruptcy proceedings have not been initiated against the company

In order to fulfil the due diligence obligation set for us as a bank, we ask you to identify yourself by video in Veriff OÜ if your deposits with interest or the total amount of loans are €15,000 or more. A device with an Internet connection and a working camera is required for verification. Have your ID ready and follow the step-by-step instructions on the screen. We will send you an email with a personal link to verify your identity.

Frequently asked questions

Legal entities registered and operating in Estonia, legal persons in public law, and self-employed persons (except self-employed persons who have been operating for less than 12 months) can apply for a business loan from Holm.

To enter into a Holm business loan agreement, a loan application must be completed:
on Holm’s website or
in Holm’s self-service environment or
by sending an e-mail to [email protected]

To apply for a business loan, you must submit a loan application approved by the company’s representative, the company’s financial statements (balance sheet and income statement for the last completed financial year, balance sheet and income statement for the last full quarter of the current financial year), and the ‘Legal entity form’. In order to obtain a complete overview of the company’s economic activities, also submit statements of the company’s bank account(s) for the 6 months preceding the submission of the application.
If the loan is secured by a guarantee from the owner of the company or a member of the management board, the guarantor must also sign the ‘Guarantor’s form’ and attach the guarantor’s bank account statement for the last 6 months. In order to make a loan decision, Holm may ask for additional documents or information that may be necessary for financing a specific project.

One of the main purposes of applying for a business loan is to create additional value for the company (for example, new machinery, equipment, or expansion of the product range, etc.). Based on its legal obligations, Holm would like to know what additional value the applied business loan creates for the company.

In a changing economic environment or in the case of a fast-growing company, it may become apparent that the financial statements (balance sheet and income statement) of the last full year no longer adequately reflect the economic activities of the company. Therefore, when applying for a Holm business loan, it is also necessary to submit financial statements for the last full quarter of the current financial year.

Holm’s business loan is secured primarily by a guarantee from a member of the company’s management board or owner, a guarantee from a legal entity economically related to the company, or a mortgage on real estate belonging to the company or a person closely related to the company, or guarantees through the KredEx Foundation and/or the Rural Development Foundation (MES).

Pursuant to law, when applying for a business loan, the bank is required to request the ‘Legal entity form’ to be filled in, which sets out the main information about the company and its owners. In addition, banks are required to act in accordance with the ‘know your customer’ principle to avoid the risks associated with money laundering and terrorist financing and to ensure the soundness and transparency of the economic environment.

The company must have been active for at least one financial year.

Legal entities registered and operating in Estonia, legal persons in public law, and self-employed persons (except self-employed persons who have been operating for less than 12 months) can apply for a business loan from Holm.

Banks must collect information on the beneficial owner to fulfil their obligations under both the Money Laundering and Terrorist Financing Prevention Act and the Tax Information Exchange Act.

In its activities, Holm is guided by the principles of responsible lending and must also assess the guarantor’s solvency. The solvency of the guarantor must be sufficient to fulfil the obligations arising from the guarantee agreement. In order to assess the guarantor’s solvency and enter into a guarantee agreement, Holm Bank needs additional information about the guarantor contained in the ‘Guarantor’s form’.

Holm is interested in the origin of self-financing because self-financing shows the company’s ability to raise capital. In particular, the bank wishes to know whether the self-financing comes from the owners of the company, is related to the extension of the payment term of the suppliers (including overdue debts), or comes from other creditors.

Pursuant to law, financial institutions are obliged to comply with due diligence measures, which also include compliance with the ‘Know your customer’ requirements (https://pangaliit.ee/anti-money-laundering). One of the basic materials is the customer’s bank account statement, which provides an overview of the customer’s daily economic activities.

In the company’s economic activities, situations may arise where the company’s liquidity is limited, which results in payment difficulties. The most important thing in case of payment difficulties is to inform Holm Bank as soon as possible. The company’s arrears and the company’s entry into the Payment Defaults Register can be prevented in cooperation with the bank, in the course of which the most optimal solution satisfying both parties is reached.

A surety is a security given by a guarantor. The guarantor is the person responsible for the loan taken by the borrower. If the borrower fails to repay, the guarantor is obliged to pay the debt. In the case of several guarantors, all guarantors are jointly liable. The guarantor can be a citizen of the Republic of Estonia or a person with a permanent residence permit in Estonia at least 18 years of age, who must have a secure income and must not be in arrears.