Solutions and advice in case of payment difficulties

About grace period

Considering the impact of the coronavirus outbreak, we are simplifying the terms of applying for a grace period and providing advice on handling difficulties.

Swedbank’s business customers have the option to apply for up to 6 months of grace period, should they experience any temporary payment difficulties. It is also possible to defer the repayment of the loan or leasing principal. Applications for grace period submitted before 30.09.2020 (incl.) will not trigger any additional fees or changes to terms.

If the company is still experiencing difficulties with fulfilling their loan obligation after the 6-month grace period, contact us please, so that we can find the best solution to support your sustainable business activities.

We follow the principles agreed between Estonian banks and leasing companies concerning the granting of grace periods. Read more

Apply for grace periodBook a consultation

It is important that you apply for grace period before being late with your loan or leasing payments.

  • You can apply for the grace period through the internet bank.
  • The grace period applies to the repayments of loan or leasing principal; interest payments remain due every month.
  • You may apply for a grace period of 6 months for the principal and, if needed, the prolongation of the contract deadline by 6 months.
  • The deferred principal amount will be distributed across the remaining loan period.
  • Could a longer payment schedule serve as an alternative to the grace period?
  • What are your financial needs and for how long will your existing buffer hold out?
  • What have you done or are planning to do to reduce costs? E.g. reaching agreements on reduction of rental payments, cutting salaries, establishing alternative sales channels etc.
  • To what extent is the owner willing and able to support the company?
  • If possible, ask your suppliers for extension of payment deadlines.
  • Assess whether your stocks are optimal in the current situation.
  • Consider offering better prices to customers with the aim of reducing stocks.
  • Apply for grace period with all your financers.

Grace period for loan/leasing principal

Grace period for loan/leasing principal may help, if the company is experiencing temporary reduction of cash flow. The length of the grace period for loan/leasing is 6 months. During this time, you do not have to make principal repayments, interest payments are still due. As a rule, grace period cannot be prolonged.

Prolongation of contract

Prolongation of contract may help, if the reduction the cash flow is of permanent nature. Prolongation of contract means that your monthly repayments will be smaller but the full repayment of the loan or leasing will take correspondingly longer.

If your payment behaviour so far has been acceptable, you have a plan for the difficult times and are in need of short-term working capital, we can propose different options:

You can apply for financing of new investments after the end of the grace period.

  • We recommend that you consider other options before applying for prolongation. These include applying for a liquidity loan, factoring or invoice financing.
  • If the grace period is extended beyond six months, it will trigger a change in the agreement, which means that it will be subject to a fee in accordance with the price list and that the bank will have the right to review the current terms of the agreement.
  • We would also like to draw your attention to the fact that a grace period prolonged beyond 6 months will influence the company’s credit rating, potentially increasing the likelihood of rejection in the case of any future financing requests to banks.