The Organisation for Economic Co-operation and Development has published a country assessment of SME and entrepreneur financing in Finland, finding that lending recovered and borrowing costs eased in 2024, but financing conditions remained difficult for many smaller businesses. New SME lending rose by about EUR 2 billion to EUR 12.7 billion, while the average SME interest rate fell from 5.8% in 2023 to 4.54%. However, tighter collateral requirements, high financing costs and perceived weak availability deterred some firms from applying for funding. Financial stress remained elevated. Business-to-business payment delays reached 17 days in 2024, matching the 2020 peak, while bankruptcies rose for a fourth consecutive year to 3,488, the highest level recorded during 2008-2024. Start-up financing recovered from EUR 896 million in 2023 to about EUR 1.4 billion, but private venture capital investment fell to almost EUR 700 million, leaving growth-stage companies reliant on foreign investors and public support. Public financing continues to fill market gaps through Finnvera, Business Finland and Finnish Industry Investment Ltd, known as Tesi. Finnvera guarantees were a condition of bank funding for 32% of firms seeking bank finance, while Tesi’s 2025-2029 strategy provides about EUR 1.8 billion of investment capacity to support growth companies, industrial projects and venture capital funds.
2026-09-21OECD
Organisation for Economic Co-operation and Development finds easing borrowing costs but persistent financing strains for Finnish SMEs
The Organisation for Economic Co-operation and Development found that Finnish SME lending recovered to EUR 12.7 billion in 2024 and average borrowing costs fell to 4.54%, but access constraints persisted. Payment delays reached 17 days and bankruptcies rose to a 2008-2024 high of 3,488. Start-up financing rebounded to about EUR 1.4 billion, although private venture capital continued to decline.