SMEs often manage to stay afloat during the corona crisis by postponing payments and utilizing the support packages. As a result, the debt position of some SMEs has significantly increased. They have little to no resources for restarting and cannot get loans from traditional lenders. Meanwhile, entrepreneurs need money to effectively position their business in the market or to replenish stock, for example. This loan can help them.
The credit is part of the Time Out Arrangement (TOA) and is intended for companies with fundamentally profitable business activities, who have made good and binding agreements with their creditors. It provides support for companies that utilize the Act on the homologation of a private agreement.
Qredits, the social credit provider, will assess the application for the TOA credit and provide the loans. Entrepreneurs who receive the credit will also get 12 months of free coaching from Qredits to get their business back on track. Companies that meet the criteria can start submitting applications from June 1.