In a strategic move to improve access to financing for businesses of all sizes, Finora Bank has launched a new partnership model aimed at expanding flexible financing opportunities across the SME landscape. By joining forces with alternative lenders, the bank is strengthening its support for both growth-oriented medium-sized enterprises and the often-overlooked microbusiness segment.
The first partner under this partnership is Hoovi, a fintech company that provides short-term working capital loans to micro-enterprises. This collaboration marks a significant step in Finora Bank’s ambition to make financing more inclusive and responsive to the diverse needs of the business community.
Kristi Hõrrak, Financial Director at Finora Bank, explains that the growing demand for flexible financing among medium-sized businesses prompted the bank to expand its partner network and offer greater support to micro-enterprises as well.
“Our mission at Finora Bank is simple: to ensure that no Estonian business misses a growth opportunity or is held back by a temporary challenge,” says Kristi Hõrrak, Financial Director at Finora Bank. “The financing needs of companies with multi-million-euro turnovers differ greatly from those of solo entrepreneurs or two-person teams. That’s why we’re building a partner network – to extend our reach and ensure even the smallest businesses have access to capital.”
Through this model, Finora Bank funds non-bank lenders that specialize in microbusiness financing. This addresses a critical gap in the Estonian lending market, where smaller companies often face difficulty meeting traditional credit criteria.
Through Finora Bank’s support, Hoovi and similar partners gain stronger capital backing and can serve their customer base more effectively.
Karl Märka, Co-founder and CEO of Hoovi says: “Hoovi provides micro-enterprises with short-term working capital, but to do that sustainably, we need a strong financial backing. We’re grateful to have received funding from the international Multitude Bank recently, and we are now honoured to have gained Finora’s trust as well. With the support of such strong partners, we can serve Estonian entrepreneurs even more effectively.”
Kristi Hõrrak adds: “The partnership with Hoovi is a great start, and it certainly won’t be the last. Finora Bank is open to working with non-bank lenders of various specializations to enhance financing opportunities for Estonian businesses across all sectors.”
She explained that this partnership model is part of Finora Bank’s broader growth strategy, which focuses on improving funding conditions for Estonian entrepreneurs.
As part of this effort, Finora Bank now offers loans backed by guarantees from the Estonian Business and Innovation Agency (EISA), enabling businesses to borrow up to five times the value of their collateral, significantly reducing the reliance on hard assets as a prerequisite for financing.
Estonian businesses navigate rising costs, changing markets, and new growth opportunities, access to tailored financing solutions has never been more critical. With this new model, Finora Bank is not only meeting current demand but helping shape a more resilient and inclusive financing ecosystem, one where every business, regardless of size, has the tools to move forward with confidence.
“We’re growing with a clear purpose,” adds Hõrrak. “Whether directly through our services or in partnership with others, we aim to empower ambitious businesses and contribute to the long-term growth of the Estonian economy.”