Financing SMEs and Entrepreneurs 2026: Denmark
Table of contents
In 2023, not counting non-employer enterprises, SMEs accounted for 99.5% of all enterprises and 47.3% of all full-time employees in Denmark.
New lending to SMEs from financial institutions decreased from DKK 46 billion to 42 billion between 2023 and 2024, representing an 8% decrease. The 2024 level was slightly lower than the average in the period 2014-2023. The share of new SME lending compared to total new lending was 6.38% in 2024, which is below the average of 10.11% in the period 2014-2023.
Interest rates for SMEs as well as for large firms were steadily declining between 2008 and 2018. Starting in 2019, the interest rates for SMEs started increasing with only a small decrease in 2022, followed by a fast increase to 8.97% in 2023, rapidly decreasing again in 2024 to 4.91%. This also resulted in a widening interest rate spread to large firms during overall increasing rates. At its peak in January 2023, the spread reached 9 percentage points. In 2024 however, the notable decline in interest rates overall also led to reduced interest spread at 0.34 percentage-points difference between SMEs and large firms’ rates.
Venture and growth capital financing from Danish private equity firms decreased slightly in 2023 and 2024 but remains at an overall high level of EUR 1 117 million in 2024. The overall decrease stems largely from a slowdown in growth capital which dropped 25 % by volume. The 2024 level of venture and growth capital remains higher than any year between 2011 and 2021.
The average payment delays have increased from 11 days in 2022 to 16 days in 2023. The number of bankruptcies among SMEs decreased from 2 448 in 2023 to 1 999 in 2024.
Government loan guarantees decreased slightly from DKK 1 349 million in 2023 to 1 329 million in 2024. Government guaranteed loans increased slightly from DKK 1 044 in 2023 million to 1 112 million in 2024.
On 1 January 2023 the Export and Investment Fund of Denmark (EIFO) was established through a merger of three previous state funds: The Growth Fund, Denmark’s Green Investment Fund and EKF Denmark’s Export Credit Agency. EIFO provides a single point of access for Danish companies that can benefit from government risk capital and financing and aims to improve Danish economic growth, in line with political priorities, including notably sustainability.
In 2023, SMEs (firms with less than 250 full-time employees) accounted for 99.5% of all enterprises and accounted for 47.3% of all full time employees in Denmark, not counting non-employer enterprises.
By firm size
Note: Non-employer enterprises (< 1 full time equivalent employee) are not included.
Source: Statistics Denmark.3
Lending to SMEs (approximated by loans amounting to less than EUR 1 million) from financial institutions decreased slightly from DKK 46 to 42 billion between 2023 and 2024. The share of new SME lending compared to new total lending was 6.38% in 2024, below the average of 10.11% in the period 2014-2023.
New short-term SME loans decreased by 20% in 2024 while new long-term loans increased by 27.27%. The share of short-term loans to long-term loans decreased from 76.18% to 67.30%.
Interest rates for SMEs as well as for large firms have been steadily declining since 2008 until 2019. The interest rates for SMEs have been increasing from 2019 at 1.85% to its peak in 2023 at 8.97% in 2023, followed by a rapid decrease back down to 4.91%. Additionally, the interest rate spread was relatively wide between 2021 and 2023, followed by a narrowing in 2024 at 0.34 percentage-points. Additionally, since 2019, there has been a general tendency towards tighter credit conditions for firms, also via stricter lending standards and increased collateral and contractual requirements. In late 2024 however, such conditions appeared to begin easing again.
According to analysis by EIFO, venture and growth capital financing from Danish private equity firms slowed slightly in both 2023 and 2024 following the record high level of EUR 1224 million in 2022. The decrease in 2024 stems largely from a slowdown in growth capital which dropped 25 % by volume. The 2024 level of venture and growth capital remains significantly higher than any year before 2022.
By stage of investment (in EUR thousand)
Note: Seed-category includes Pre-seed and seed rounds. Figures include categorised rounds of known round-sizes.
Source: EIFO analysis
According to Intrum, B2B (business-to-business) payment delays have been increasing from 11 days in 2022 in 2022 to 16 days in 2023. The number of bankruptcies among SMEs decreased from 2 448 in 2023 to 1 999 in 2024.
In June 2024, the Danish government introduced a comprehensive Entrepreneurship Package comprising 46 distinct initiatives to create more favourable conditions for entrepreneurs and SMEs. One of five overarching areas of the package, and the area of highest financial significance, is Improved access to capital and eased tax regime.
Accordingly, the package includes efforts to ease access to capital for certain prioritised policy areas, through significant capital injections to EIFO, the Danish National Promotional Bank and Export Credit Agency. More than 2 billion DKK were allocated for general and green mandates, while more specific areas have received smaller earmarked allocations.
It also served to make permanent several schemes for government guaranteed loans, including growth loans (Vækstlån), the match financing scheme (Matchfinansieringsordningen), and small government loan guarantees (Vækstkautioner), which had varying degrees of formalisation. The schemes are described in the following sub-sections.
Finally, the package reduces tax barriers for all entrepreneurs, while a particular emphasis is placed on reducing barriers to IPO.
Growth loans (Vækstlån) are loans issued by EIFO directly to SMEs and small mid-caps seeking capital for business development or a change of ownership. The financial assessment is based on the company’s current and past performance, its potential for growth and profitability, as well as its management capabilities. All loans are granted as part of a funding package that is provided by other financial partners, such as banks and mortgage institutions. The interest rate is set in accordance with EU’s guidelines4 and is usually set approx. 30% above the comparable market rate to ensure minimal market distortions, avoid a crowding out of the private sector, and hedge against collections/defaults in which banks and other creditors have preferred claims on pledged collateral.
The match financing scheme (Matchfinansieringsordningen) allows EIFO to issue loans (Matchlån) and convertible loan notes (Early Engagement) by matching investments of private investors. The loans are specifically targeting young, innovative enterprises who may in time be eligible for venture capital, in other words, highly scalable and potentially global enterprises with an innovative product or business model. The maximum loan amount for all three types of loans is, as a general rule, EUR 1.1 million and the maximum maturity is 10 years.
The amount of government guaranteed loans increased from DKK 1 044 million in 2023 to DKK 1 112 million in 2024.
Growth loan guarantees (Vækstkautioner) are provided to SMEs and cover up to 75% of a bank’s loss in the event of a default. Capped at DKK 2 million, growth loan guarantees can be granted to finance business development, changes in ownership, capital investments, or the development of new and improved products.
The working capital guarantee in EIFO was first established as a temporary guarantee scheme to provide operating and development credit for Danish export firms. The scheme has since been made permanent and extended so it is no longer reserved for export firms. EIFO can guarantee up to 80% of operating and development credit extended by banks to Danish export firms and their sub-suppliers. EIFO assumes all rights and obligations associated with the scheme.
Government loan guarantees issued to SMEs decreased slightly from DKK 1 349 million in 2023 to DKK 1 329 million in 2024.
Source: See Table 4.
References
Danmarks Nationalbank (2025): “Dansk økonomi i balance trods usikre tider” https://www.nationalbanken.dk/da/viden-og-nyheder/presse/arkiv/2025/dansk-oekonomi-i-balance-trods-usikre-tider-19-03-2025
Danmarks Nationalbank, DNRNUM (2025): ”DNRNUM: New domestic loans excl. revolving loans, etc. from MFI sector excl. Danmarks Nationalbank.” https://nationalbanken.statbank.dk/DNRNUM
Danmarks Nationalbank, DNRUUM (2025): ”DNRUUM: Outstanding domestic loans from the MFI sector excl. Danmarks Nationalbank.” https://nationalbanken.statbank.dk/DNRUUM
EIFO (2025): ”Danish venture capital market analysis 2024”
https://www.eifo.dk/media/5mcpl2f3/venture-market-analysis-2024_march-2025.pdf
Intrum (2023): “European Payment Report Country Snapshots White Paper 2023.” https://www.intrum.com/insights/publications/epr-country-snapshots-white-paper-2023/
Statistics Denmark, GF13 (2023): ”GF13: General enterprise statistics.” https://statbank.dk/GF13
Statistics Denmark, KONK7 (2025): “KONK7: Bankruptcies by employed.” http://www.statbank.dk/KONK7
Statistics Denmark, NAN1 (2025): “NAN1: Demand and supply.” https://statbank.dk/NAN1
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