Start-Up Window
GUARANTEE FOR A NEW BEGINNING!
A good idea can be the starting point of a successful business, but turning it into a sustainable operation requires capital, time and opportunities to invest. For a newly established business, securing financing can be particularly challenging. Banks and financial institutions need to assess a business’s track record and viability, while new enterprises have not yet had time to build a sufficient financial or credit history. Other barriers include a lack of property or assets that can serve as collateral and limited business management experience. For newly registered businesses, these factors can make it harder to secure the funds needed to begin operations, purchase equipment or invest in capacity.
At this stage, when a business needs financing most but has a limited track record to demonstrate its viability, the Kosovo Credit Guarantee Fund (KCGF) provides support through the Start-up Window. Operational since 2023 and supported by the Government of the Republic of Kosovo through capital financed by a World Bank loan, the window supports enterprises with up to 12 months of operation from the date of registration.
Through credit guarantees, KCGF assumes a greater share of the credit risk, providing guarantee coverage of up to 80% and giving financial institutions greater scope and flexibility to finance businesses in their early stages of development. The guarantee helps address some of the constraints associated with a limited track record, insufficient collateral or lack of business experience, while credit assessment and lending decisions remain the responsibility of the financial institution.
Financing can enable new enterprises to take their first steps, invest in their operations, purchase equipment and lay the foundations for further development. However, a new business needs more than capital. It also needs knowledge, skills and connections to turn an idea into a sustainable operation. For this reason, the Start-up Window is complemented by non-financial support through capacity building, financial education, mentoring and networking.
In this way, the Start-up Window aims to give new businesses a better opportunity to navigate the initial stage, turn their ideas into viable businesses and build a foundation for growth and sustainability.
WHO CAN BENEFIT?
The Start-up Window is intended for new businesses that meet the basic eligibility criteria and have up to 12 months of operation from the date of registration.
| Criterion | Requirement |
|---|---|
| Business status | Micro, small or medium enterprise |
| Registration | Business registered with the Kosovo Business Registration Agency (KBRA) |
| Ownership | Privately owned |
| Business age | Up to 12 months from the date of registration |
| Number of employees | Less than 250 employees |
| Ownership | Owned by citizens or permanent residents of Kosovo |
| Professional capacity | The owner or owners must have relevant experience, education or training appropriate to the business activity |
| Definition | A start-up is defined as a privately owned enterprise registered with KBRA as an MSME, with up to 12 months of operation from the date of registration. The owne or owners must have experience, education or training appropriate to the business activity. |
| Not considered a start-up | The expansion of an existing business's activities or the merger of two or more existing enterprises. |
GUARANTEE FEATURES
The Start-up Window provides higher guarantee coverage to address the specific risk profile of early-stage businesses and enable financing for working capital and investments.
| FEATURE | TERMS |
|---|---|
| Guarantee coverage | Up to 80% |
| Minimum loan amount | EUR 3,000 |
| Maximum loan amount | EUR 100,000 |
| Maximum guarantee amount | EUR 80,000 |
| Maximum loan maturity | 84 months |
| Loan purposes | Working capital and capital investments |
ADDED VALUE
The Start-up Window creates value for new enterprises that need capital and support at an early stage, as well as for financial institutions seeking to finance businesses with growth potential.
| FOR MSMES | FOR FINANCIAL INSTITUTIONS |
|---|---|
| Improved access to finance at the start-up stage | Reduced credit risk |
| More favourable terms for start-ups | Reduced cost of risk |
| Reduced collateral requirements | Opportunities to expand the loan portfolio |
| Support for working capital and investments | Expanded financing for new businesses |
| Improved financial knowledge, mentoring and networking | Support for financing entrepreneurship and innovation |
The Start-up Window bridges the gap between an idea and financing, helping new businesses progress from the initial stage towards development and sustainability.
HOW THE GUARANTEE SCHEME WORKS
KCGF has no direct contact with borrowers.
Communication with the borrower takes place through the Registered Financial Institution.
Application Process
KCGF operates on the premise that the RFI will conduct an appropriate credit risk assessment and verify the eligibility of the borrower and the loan.To monitor and oversee the performance of each participating RFI, KCGF has developed two monitoring mechanisms: