FAQ about Innovation Loan

Innovation Loan is designed for companies that want to develop a new product, service, process or business model where the level of risk is higher than for traditional investments.

It is intended for innovation projects with strong potential, where the development phase is still ongoing and the initiative requires testing, verification or prototype development before reaching the market.

Innovation Loan is a good option when you want to develop something new and the investment involves higher risk than traditional investments.

The loan is particularly suitable when you are developing a new product, service, process or business model and need financing for testing, verification or development steps before the idea reaches the market.

With Innovation Loan, you receive financing that takes both risk and potential into account, along with dialogue and support that help strengthen your business model and increase your chances of successfully bringing your innovation to market.

You can apply for Innovation Loan if you run a company registered in Sweden with up to 249 employees.

The loan is suitable for companies with an innovative idea that has the potential to create growth and competitiveness. Innovation Loan can be granted to both new and established companies, as long as the initiative is assessed as commercially promising.

Innovation Loan can be used to finance the activities required to take an idea from concept to market. This may include prototype development, testing, verification of technology or business model, production preparations or other development activities.

The initiative should include a clear development step and contribute to the company’s long-term growth.

An Innovation Loan ranges from a minimum of SEK 50,000 to a maximum of SEK 500,000.

In many cases, the loan amount is around SEK 300,000, but the exact amount is determined based on an overall assessment of the project’s needs, risk level and your company’s repayment capacity.

How the financing is shared between Almi and other parties depends on the project phase, level of uncertainty and whether additional financing is required.

Yes, Innovation Loan requires co-financing. Almi can finance up to 50 percent of the estimated project cost.

The structure of the co-financing depends on the loan amount and the phase of the project. For lower loan amounts, part of the co-financing may, in some cases, consist of your own work in the project.

For loan amounts above SEK 300,000, at least half of the co-financing must be in the form of capital, such as equity, bank financing or other external funding.

Your advisor will review what is relevant for your specific project and help you find a reasonable financing solution.

The interest rate is set individually based on the risk level of your project and your company’s repayment capacity.

Because innovation projects often involve greater uncertainty than traditional investments, the interest rate may be slightly higher. 

Collateral requirements vary depending on the project’s risk and the company’s situation.

Often, a combination of a business mortgage and a limited personal guarantee is used. However, innovation projects often allow for greater flexibility, as tangible assets may be limited in early stages. Your advisor will assess what is reasonable for your company and your project.

The repayment period for Innovation Loan is usually between 3 and 5 years, but it can be adapted to the development phases of the project.

The maximum possible repayment period is 96 months (8 years). Since innovations often take time before generating revenue, the repayment plan can be structured to match the project’s expected time to market.

You apply via Almi’s digital loan application service using BankID.

After submitting your application, an advisor will contact you to review your idea, the phase the innovation is in, and which type of financing is most suitable. Innovation projects usually require more detailed documentation than traditional loans, due to the higher level of risk.

The required documentation varies depending on the stage of your project.

Common documentation includes:

• a description of the innovation and what makes it new or unique
• a development plan and timeline
• a budget and financing plan
• a description of the market and business model
• prototypes, test results or early verifications, if available
• financial statements or budgets, as well as interim and comparative figures, if available

The more complete the picture of your project, the faster Almi can make its assessment.

Processing time is normally around 3–4 weeks from the moment the application is complete.

For innovation projects, which are often more complex, processing may sometimes take longer. Your advisor will contact you if additional information is required.

Yes. Innovation projects are often financed through several sources at the same time.

Innovation Loan works well as a complement to, for example, grants, investors, equity or bank financing. Combining financing sources makes it possible to cover costs throughout the entire development phase.