EIF joins forces with Finbee Verslui to provide €1 million in loans to Lithuanian micro-entrepreneurs

The European Investment Fund (EIF) with the backing of the EU Programme for Employment and Social Innovation (EaSI) and Lithuanian alternative financier Finbee Verslui have signed an agreement to provide €1 million in loans to Lithuanian micro-business owners who normally might struggle to access funding. A recent EU study shows that in Lithuania, banks reject 32% of small businesses’ applications to borrow, while the EU average is 7%.

Finansų Bitė Verslui UAB (“Finbee Verslui”) expects that about 100 micro-businesses in Lithuania with up to ten employees and up to €2 million in annual income that typically do not have access to traditional lending, will have access to the financing. Loans will range from €1 000-€25 000, being used both for working capital and investments for expansion and equipment renewal.

"Empowering micro-businesses to grow has been our mission since the first days of our operations,” says Tomas Mačiulaitis, the manager of Finbee Verslui. “Until now, we have provided financing to more than 1 100 micro companies in Lithuania. The EaSI programme will enable Finbee to finance even more businesses on more competitive terms than usual: Finbee will apply a contract fee that is around 25% lower, while interest rates will be on average 1-2% lower."

According to Mr Mačiulaitis, the problem of availability of financing for small businesses is still very serious in Lithuania. According to the “Survey on the access to finance of enterprises” conducted by the European Commission, Lithuania performs worst among EU countries in terms of the number of applications rejected by banks: in Lithuania, banks reject 32% of businesses’ applications to borrow, while the EU average is 7%.

EIF Chief Executive Marjut Falkstedt agrees that “during difficult times it’s always the smallest actors in the economy that struggle most. This new agreement with Finbee Verslui, using resources from the European Union’s EaSI programme, will contribute to the development of the microfinance sector in Lithuania and support micro-businesses that typically struggle with traditional lending, offering them improved access to the financing they need to stay on track and confront the multitude of financial pressures that they are facing today.”

Background information

Finbee Verslui is an alternative lender with a mission to serve small businesses by bridging the finance gap for SMEs, which are the backbone of the economy. With a focus on excellent customer service and flexible solutions, Finbee Verslui has become a trusted source of financing for small businesses. To date, the company has delivered over 3 000 loans to more than 2 000 small businesses. As an alternative lender, Finbee Verslui is committed to providing solutions that traditional banks cannot offer, including faster and easier access to funds. With a dedication to helping small businesses thrive, Finbee Verslui is a valuable partner for entrepreneurs looking to grow their businesses.

The European Investment Fund is part of the European Investment Bank Group. Its central mission is to support Europe’s small and medium-sized enterprises (SMEs) by helping them access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, the EIF furthers key EU policy objectives such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability, and more.

The EU Programme for Employment and Social Innovation (EaSI) is a €200 million financing instrument that started operating in 2019. The programme aims to increase the access to finance of micro-businesses, including individuals, vulnerable people and social enterprises, thereby promoting job creation and social inclusion. It is one of several EU financial instruments used under the EaSI programme to support microfinance and social entrepreneurship. The EaSI financing instrument is a partnership between the European Union, the European Investment Bank and the European Investment Fund.

Press contacts

European Investment Bank Group
Kristiina Randmaa, tel.: +352 4379 72894 — k.randmaa@ext.eib.org
Follow us on Twitter@eif_eu
Website: www.eif.org — Press Office: +352 4379 21000 — press@eib.org

Finbee Verslui

Giedrė Leminskienė, giedre@finbee.com, tel.: +37061417085
Website: www.finbeeverslui.lt