Guarantee Products and Services
AECM member organisations offer a variety of guarantee products and services. The range of products will vary according to the Guarantee Scheme (GS).
All of them dispose of loan default guarantees, which cover part of the bank’s credit risk, should the SME customer default on his payments. Depending on the GS, the guarantee coverage rate, i.e. the extent to which the bank will be reimbursed, usually varies from 30% to 80%. Loan default guarantees are issued for all phases of the SME investment lifecycle (start-up, growth, internationalisation, business transfer). There are also products for short term financing needs, e.g. of working capital needs, either in conjunction with an investment loan guarantee or as a stand alone product.
Aside from the classical loan default guarantee, GS also offer other types of guarantees, such as guarantees for mezzanine finance, business angels, equity investments, European projects, project finance, etc.
Certain members, mainly the public ones, also have other support instruments for SMEs, such as grants, loans with subsidized interest rates, export finance guarantees, etc. Among the services provided are support of the SME for preparing its loan application, business transfer exchange platforms, mediation services between banks and SME customers, etc.
Depending on the GS, the guarantees are available to specific branches of industry or to a wide array of sectors. Agriculture is usually dealt with through specific guarantee societies.
Types of guarantee schemes and their business models: http://aecm.eu/wp-content/uploads/2020/05/2019-Artículo-Revista-ALIDE-modelo-de-negocios-canvas-VF-english-modificado-18.05.20.pdf
To find out the exact product lines of the respective AECM member organisations, please consult the contact details under the AECM member section.