With EU-backing, over 300 Lithuanian micro-enterprises are set to get access to finance through a guarantee deal between the European Investment Fund (EIF) and fintech company Faktoro.
Known for its factoring services, the up to €6 million guarantee deal will allow Faktoro to start awarding working capital loans of up to €25,000 to micro enterprises in Lithuania. The EIF-guarantee is supported under the EU programme for Employment and Social Innovation (EaSI)
Faktoro will use the EaSI guarantee to launch a new working capital lending product for micro-enterprises in start-up or development phase, and expects to serve around 330 clients. In the current difficult economic environment, the EIF will initially guarantee up to 90% of all transactions as part of its Covid-19 support measures. Apart from enhancing access to finance for micro-enterprises in Lithuania, the working capital loan offered will be essential in providing liquidity to companies during the Covid-19 economic recovery.
The European Union Programme for Employment and Social Innovation (EaSI) aims at contributing to the implementation of the Europe 2020 strategy by supporting the EU's objective of high level employment, guaranteeing adequate social protection, fighting against social exclusion and poverty and improving working conditions.
The EIF has been entrusted by the European Commission to manage several financial instruments under the EaSI programme's Microfinance and Social Entrepreneurship axis, the EaSI Guarantee being one of them.