Access to finance
Access to EU finance
This site will help you to apply for finance supported by the European Union. To access EU finance, click on your country to locate banks or venture capital funds that provide finance supported by the EU:
National sources of finance
The Hungarian state helps companies gain access to finance through indirect and direct support schemes.
The strategy on the development of small and medium-sized enterprises gives us an idea of the state policy relating to the means and ways of stimulation and support of the development of small and medium-sized enterprises and the extension of their financial sources by the government.
The programme of the New Széchenyi Plan for business development concerns financing opportunities for small and medium-sized enterprises, including, among other things, more efficient use of European Union resources, the development of stable financing for current assets, and restarting capital access programmes for small businesses. The system of support and tendering for the plan started on 15 January 2011.
The Széchenyi Card is a government-sponsored loan scheme for micro, small and medium-sized enterprises (SMEs), and sole traders, with low interests, and covered by the government's interest and guarantee fee support. Any SME operating as a sole trader or a private company, or as an economic organisation specified in the business rules or in the form of a cooperative for at least one year (two years if a credit amount above 10 million forints is requested) may apply for a Széchenyi Card. In addition to the Széchenyi Card Overdrafts, the Széchenyi Card Programme offers additional loans such as the Széchenyi Current Assets Loan, the Széchenyi Investment Loan, the Széchenyi Self-Resourcing Supplement Loan, as well as the Széchenyi Pre-Support Loan. As a latest loan, the Agrarian Széchenyi Card offers overdraft loans for any purposes for 1, 2 or 3 year terms to agricultural primary producers, family farmers, sole traders, as well as small and medium size enterprises engaged in the production, processing and marketing of agricultural products, forestry, game and fish management.
The government owned Hungarian Development Bank (MFB) offers its certain loans to the various corporate segments with favourable interests and for a long run. The purpose of the Enterprise Financing Programmes is to offer loans and leasing with favourable interests for the increase of the role of micro, small and medium-size enterprises, strengthening their innovation and delivery activities, environmental, rural development and health-related investments, as well as to offer a supplementary source for development and investment related project, in particular, for the project of the New Széchenyi Plan. The basic loan is supplemented with special loans (such as support plus VAT loan, Pre-support loan, Support bank guarantee). The purpose of the Loan Programme for Small Businesses is to offer long term and favourable sources to micro and small enterprises seated in Hungary for their investment and development objectives. The Hungarian Development Bank developed its Agrarian Current Assets Loan Programme for enterprises operating in agriculture.
The task of Corvinus Venture Capital Fund Management is to create and administer venture capital funds invested in innovative small and medium-sized enterprises that are in the initial and early stages of growth.
The purpose of the New Széchenyi Combined Microloan and the New Széchenyi Loan Programme of Magyar Vállalkozásfejlesztési Zrt. is to improve the development of micro-companies and small enterprises registered in Hungary and which cannot be financed, or not to the desired extent, by means of commercial banking methods, through improving their opportunities to access credit. Under the New Széchenyi Loan Guarantee Programme, guarantees increasing the chances of micro-, small- and medium-sized enterprises to obtain loans will be introduced. The New Széchenyi Risk Capital Programme is intended to improve the equity situation of enterprises in their early (sow-seeding and starting) and growth phases within the SME sector.
In addition to interest support from the State and the assumption of a guarantee by Garantiqa Credit Guarantee Co. Ltd., micro and small starting and beginning businesses may request credit under the Budapest Loan Scheme for Small Businesses if they are listed in the Hungarian companies register, have their registered office in Budapest, or are developing premises in Budapest.
The general purpose of the Microloan Programme is to support small enterprises with financial sources and advises, particularly, in those special fields where the demands of the small enterprises cannot be currently met by the commercial banks. A more detailed description of the schemes can be found on the Budapest Enterprise Agency website.
The Small Business Development Co. Ltd. invests in small and medium-sized enterprises that have growth potential. The aim of investing development capital is to reinforce small and medium-sized enterprises, promote their innovative abilities and technological development and improve their creditworthiness and market position.
The Regional Development Holding Zrt. a company fully owned by the state. It aims to promote regional economic development, restructuring and competitiveness. The Regional Development Holding Co. Ltd. offers a wide range of financial services. They are involved in the launching of promising projects, the implementation of developments as a cofinancer supplementing mainly the equity with capital investment and granting development loans, long and medium term financing loans.
Hungarian Export Credit Insurance plc offers special insurance schemes to small and medium-sized enterprises (SMEs) exporting Hungarian goods and services.
Garantiqa Loan Guarantee is based on cooperation between the Hungarian government, Hungary's main commercial banks, savings co-operatives and a number of business associations. Their basic aim is to promote the development of the SME sector by providing guarantees for loan, bank guarantees, leasing and factoring transactions. The guarantees allow small- and medium-sized ventures with viable business plans to obtain resources if they have not sufficient securities to offer as coverages, and therefore granting them loans or supports would be considered very risky.
Start Capital Guarantee Ltd. offers capital guarantee products to customers investing in small and medium-sized enterprises in Hungary. The Start Ltd. capital guarantee programme makes capital guarantees available to Hungarian SMEs and their investors. In addition, it offers its direct guarantee products to Hungarian SMEs winning non-repayable European Union supports via competitions invited in the frame of the National Development Plan and the New Hungarian Development Plan.
The Rural Credit Guarantee Foundation aims to increase the creditworthiness of small and medium-sized enterprises in rural areas, improve the conditions for their access to credit, ensure their financial viability, and offer cash guarantees.
Mezzanine financing is a form of loan financing between the share and the guaranteed debtor's note. Further information about finance companies and funds that work with this kind of financing in Hungary can be found on the Hungarian Venture Capital Association website.
The National Employment Public Benefit Nonprofit Ltd. regularly announces a number of tenders for businesses facing difficulties as a result of the recession, particularly to help preserve employment.
Access to EU funding
In Hungary, the main institution that deals with the adjudication and administration of EU resources is the National Development Agency (NDA). The National Development Agency, which channels resources from the Structural Funds and, in some cases, the Cohesion Fund, adjudicates on aid by means of classification into several operation programmes. Currently theses offer grants for development inter alia in the following areas:
- Economic regeneration:
- Environmental protection and energy efficiency:
- Transport and transportation:
- Social developments:
- Targeted regional development: Regional Operational Programmes (ROP)
Businesses can primarily find out about announced grant opportunities on the National Development Agency's website.
Information on the organisations that participate in administering EU grants and schemes, and in providing resources can be found on the following website:
English description of EU grants and Hungarian programmes:
Tasks relating to the planning of the use of EU development sources between 2014 and 2020, to the development of the institutional system, as well as the structure of operatives programmes for the use of the EU sources are specified by the following Government Decree:
Credit and financial institutions that offer diversified opportunities for business financing are listed by the Hungarian Financial Supervisory Authority, which also monitors their activities.
In the frame of factoring activities, the factoring company and the seller supplying the goods or services on open terms agree that the factoring company buys the seller's receivables with immediate payment. They agree upon the details of the management of receivables from buyers and the collection of invoicing claims. The member organisations of the Hungarian Factoring Association are banks and specialised financial institutions.
Leasing is one of the most common forms of instrumental financing. In leasing, the lessor and lessee conclude an agreement with each other for a defined period, during which the lessee is entitled to use the given instrument in return for payment of the leasing fee. At the end of this period, the lessee is generally entitled to purchase the instrument at its residual value, or to acquire it automatically.
Companies can also use mortgages. In such cases, in order to insure the bank’s claims, a mortgage right is established on the property or movable property of the debtor or a third party, or on any claims existing in respect of any third party. This most often applies to commercial or residential properties. In addition to cover for real estate, companies can also ask for loans for any purpose, but they may also ask for financing for the actual purchase of property.
For companies that do not have property or other cover but need a loan that can be used freely, a solution is offered by overdrafts.
If a company needs financing for current assets, it may ask for a current assets loan. Rollover and non-rollover credit may be applied for, depending on whether a loan amount will be needed several times a year, or just once.
The project finance scheme is characterised by the fact that the bank must often finance project costs of several hundreds of millions of forints. The point is that, when the loan is assessed, the primary criterion is not the creditworthiness of the company creating the project (it is usually new companies that are established for the project), but rather the capacity of the new facility to recoup its costs in future and to generate a profit. In this regard, the banks require a wide-ranging insurance package to be set up in connection with the project, in order for them to cover their risks. The type of insurance demanded (right to the mortgage on the property, transfer of rental fees, etc.) reflects the characteristics of the project.
In the case of company home-building loans, the state offers support with paying interest on bank loans to companies that build homes for sale or rent.
Basic investment administration is an activity pursued in accordance with published investment principles and is subject to official monitoring. Fund managers are strictly regulated by law. The portfolios of funds in Hungary may include financial instruments or properties.
Business support organisations can advise businesses on how to find financing.