Purpose of the loan

Kafalat Start-ups and Innovation  guarantee programme was set up to specifically support start-ups who demonstrate the potential to create significant added value, placing emphasis on the project’s feasibility and viability, and the borrower’s ability to repay rather than on the borrower’s net worth.

Kafalat Start-ups and Innovation guaranteed loans may be used to finance all business related expenditures, including:

1. Purchase of equipment and other capital expenditures. These can be new or used.
2. Plant renovation, expansion, etc.
3. Purchase of raw material, spare parts, working capital, and payment of consulting fees.
4. Construction costs. However, the loan should not be used exclusively to cover construction costs.
5. Marketing and promotion activities, such as participation in show rooms, foreign exhibitions, etc.
6. Research and development.
7. Other strategic objectives that serve the interest of start ups.

Expenses have to be relevant to the business activity subject of the loan and expenditures have to occur after the approval of the loan guarantee. Project costs incurred prior to the loan guarantee application will not be taken into consideration, unless a valid written justification is given by the bank and approved by Kafalat.

Without excluding any sector or enterprise currently supported by Kafalat, Kafalat Start-ups and Innovation focuses primarily on the promotion and support of the following activities:

1. Development of new products or services
2. Development of new production or business processes
3. Development of new uses for exiting products 
4. Development of new types or modes of distribution or sales channels.