Institut Català de Finances (the ICF) and the mutual guarantee company Avalis de Catalunya have launched a new line of financing to promote the projects of growing SMEs.

This line is targeted at companies with a turnover of up to 10 million euros that have grown exponentially in recent years or that foresee future growth, either organically or inorganically. Thus, it is aimed at companies with substantial growth in turnover or headcount, or who have acquired or are looking to acquire a company or its assets.

In this regard, the purpose of the "ICF - Avalis growth" loans will be to to make investments, such as acquiring new or second-hand fixed assets for production, buying out companies or setting up companies abroad, or meet cash-flow needs - such as current expenditure, payrolls, payments to suppliers or procurement of goods.

For the CEO of the ICF, Josep-Ramón Sanromà, "these new loans are another example of the commitment of both Avalis and the ICF to bolstering the Catalan economy and encouraging SMEs to boost their dimension and production capacity, whilst strengthening their international presence".

The CEO of Avalis de Catalunya, Josep Lores, highlights that the Avalis guarantee "will facilitate access to long-term financing, which is the kind of financing that these projects require, but which SMEs tend to have difficulty accessing".

These loans can be for up to €500,000 and must be repaid within a five-year term -in the case of cash flow-, with the possibility of a grace period of up to 1 year included in the term. For investment loans, the term can be up to 10 years, with the possibility of a grace period of up to 2 years.