sources of Financing

Good Business Ideas Are Scarcer then Money

MATI Related Financing Options Especially Suited to Small Businesses

 
MATI offers you a variety of credit options to help you open/expand your business These include banks, government, public and private funds, some of them charging low interest rates, easier guarantees, and payment in installments spread over a long time. However, all financing institutions require from the entrepreneur a sound financial plan and a "clean" credit history (no "restricted" accounts, legal suits by banks, etc.).

MATI will help you select the most suitable financing program for you and your business, and prepare a financial plan which is a pre-requisite for receiving financing. A financial plan may also be required for joining a partnership or obtaining additional financing.

The table below lists some of the financing institutions and their credit conditions. Note that this data may change from time to time. Therefore, it is strongly recommended to double-check all data before actually applying for a loan.
 

	Jerusalem Business Development Fund (KATI)	Immigrant Entrepreneur Fund	State Guaranteed Fund	Israel Free Loan Association Fund	"Koret Israel" Funds	Shemesh Fund
Objectives	Opening / expanding a business	Opening / expanding / acquiring a business	Opening / expanding a business or operating capital	Opening / expanding a business or operating capital	Assistance to businesses - investment/ operating capital	Helping young entrepreneurs
Eligibility	Jerusalem / Beit Shemesh / Mate Yehuda residents	New immigrants - less than 10 years in Israel "Toshav hozer" - 2 years	Investments for new businesses and operating capital for existing businesses	Entrepreneurs/ businesses with monthly turnover under NIS 150K	All	Entrepreneurs 20-35 years old
Maximum loan size	NIS 350,000	NIS 100,000	NIS 500,000	Opening / expanding a business -NIS 90,000 operating capital -     NIS 60,000	Micro loans path -up to NIS 60,000 Simple path - up to   NIS 200k	NIS 90,000
Loan's interest	Prime + 0.6%	Index + 2%	Prime +3.5%		Simple path-prime+1.8%	Prime only
Maximum return period	6 years (minimum 2 years)	6 years	5 years	Opening / expanding a business - 45 months operating capital -      40 months	Micro loans - 3 years Simple path - 5 years	5 years
Maximum Grace period	3-6 months	12 months	6 months	-	3 months	3 months
Self-financing	As decided by the committee	At least 25% of the loan	For investments only - 20%	-	As decided by the committee	15% of total investment
Personal guarantee	Required	Required	Required	Required	Required	Required
Outside guarantees	For up to  120,000 NIS - 2 Guarantors. For more,  collateral covering about 30%-50% of the loan	guarantors: 1- 35,000 2- 70,000 3- 100,000	Collateral covering about 25%-30% of the loan	Up to NIS 45,000 - 3 guarantors, if more - 4 guarantors	Simple path-up to 100k NIS, one guarantor. For more, 25% collateral loans	2 guarantors
Operated by	Bank Otsar ha-Hayal	Bank Hapoalim	Bank Otsar ha-Hayal; The First International Bank; Bank Mercantile Discount	The fund itself	Otsar ha-Hayal	Bank Otsar ha-Hayal

To the internet site of The State Guaranteed Fund

To the internet site of The Israel Free Loan Association

To the internet site of Shemesh Fund