The European Investment Fund (EIF), the SME credit provider set-up by the European Union, has issued a fact sheet in conjunction with Leaseurope explaining how lessors can utilise EIF funds to support small businesses.

The paper highlights two structures through which European lessors can access guaranteed funding to increase lending. The EIF said the two programmes can "help leasing companies in challenging times".

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

EIF offers a securitisation instrument through which bank-owned and independent lessors can access between €50m and €100m in guaranteed senior debt. This option targets "financial institutions committed to SME financing", according to the paper, and is available to bank-owned lessors and independent leasing companies typically funded through bank lending.

In the paper, EIF said it has "a pool of investors keen to invest in products guaranteed by EIF with an attractive all-in cost for the originators."

The institution, which is operated by the European Investment Bank, the European Commission as well as several private financial services firms, also offers lessors the ability to share the risk on new leases.

Under the scheme, EIF provides uncapped guarantees on 50% of each eligible lease with the credit analysis, decision process and servicing operated by the lessor. EIF said this product is designed to encourage lessors which are less active in the SME sector because of the risk profile to lend to those European SMEs with "innovative potential."

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

EIF and Leaseurope plan to issue further information in future about other options for leasing companies at European, national and regional levels can be expected in the future as part of European Commission mandate to channel EU and governmental funding to SMEs.

The fact sheet, called Supporting Europe’s SMEs – European Investment Fund’s Guarantee Instruments: Fact sheet for the European leasing industry, is available on the Leaseurope website.