Gigarant

Gigarant can grant this guarantee to small, medium-sized and large businesses that comply with the following conditions:

• you must be able to present a well-founded business plan
• you preferably have growth or investment plans
• the underlying financing must contribute to the economic fabric of Flanders
• your company may not be a company in difficulty (according to the guidelines of the European Commission)
• you are not active in the fisheries or agricultural sector

All common forms of credit in euro are eligible (working capital financing, investment loans, long-term loans, leasing, factoring, bank guarantees, acquisition loans, etc.).

Gigarant can guarantee both existing and new credits.

However, the funds do not serve to pay direct or indirect remuneration to the shareholders or the management of the company (unless on the basis of existing, market-based agreements).

The guarantee must meet the following conditions:

• it always exceeds EUR 1.5 millionit may not exceed 80% of the underlying financing
• it has a maximum duration of 15 years
• and only benefits from the collateral and personal sureties established by the bank for the guaranteed credit

In exchange for the guarantee:

• you pay a periodic guarantee premium in line with the market at the start of each new period
• you make agreements with Gigarant in terms of employment in Flanders

Calculation of the premium

The periodic (at least annual) guarantee premium is in line with the market. You need to pay it at the beginning of each new period. The rating given to the application and the surety structure determine the amount of the premium.

PMV can invest

To support its position as guarantor, Gigarant may also (co-)invest in companies. This may be by way of a capital participation and/or by providing a loan (subordinated, non-subordinated, mezzanine and/or ordinary).

In doing so, Gigarant focuses particularly on companies looking for a “turnaround” or strategic transition. Gigarant can assist these companies both by providing a guarantee for their external financing and by making a co-investment with private investors. For new applications, the size of such an investment is limited to one-fourth of the guarantee requested.

It is either the bank, your company, or both, that lodge the application. The application must contain the following elements, as a minimum:

Relating to your company:

• the name of your company, with a description of your business (global, in Flanders, customers, suppliers, market share and competitors, etc.)
• the figures recorded for the past two financial years (balance sheet, profit-and-loss account, notes to the profit-and-loss account). If available, we would also like to receive the consolidated figures and the auditor’s reports
• your business plan (taking the additional financing commitment into account). In the plan, make sure you cover the following aspects:
• solvency
  • repayment capacity
  • other support measures in place
  • available collateral
  • other elements that might convince us of your company’s intrinsic health
  • recent and likely developments in your workforce
  • a proposal for maintaining employment in Flanders

Relating to the new loan:

• the name of your financial institution
• the amount, purpose, interest rate, term, the repayment schedule, sureties and other contractual terms for the loan to which the guarantee is attached
• a financial analysis and risk assessment (rating) of your company
• the estimated net risk position of your financial institution
• a summary of the other agreements between your financial institution and its associate companies and your company. We also expect to see a summary of all of your company’s other existing finance agreements and their principal terms and sureties
• the term and percentage of the guarantee requested

Gigarant will notify you and your financial institution as soon as the guarantee application is complete and admissible.

Our team is available to talk to you at all times. As a neutral party we can give you obligation-free advice about how to structure your application.