Which is the best option for your company? We compare costs, terms, requirements, and risks.
Portuguese SMEs have more financing options than ever — but navigating between them is confusing. Each option has different costs, requirements, and risks. This guide compares the main ones.
What it is: You sell term invoices to a bank and receive the amount in advance.
Cost: 2-6% annualised | Term: 24-48h | Collateral: None (the invoices are the collateral)
Ideal for: B2B companies with term invoices and a need for immediate liquidity.
Limitation: Depends on the quality of the debtors.
Complete factoring guide → | See it on Advanta →
What it is: The bank pays your supplier for you, and the SME repays over an extended term.
Cost: 1.5-4% annualised | Term: 30-120 extra days | Collateral: None
Ideal for: Companies with high fixed costs that need headroom on supplier payments.
Complete confirming guide → | See it on Advanta →
What it is: Medium/long-term credit repaid in instalments.
Cost: 4-8% + arrangement fee + stamp duty | Approval time: 2-6 weeks | Collateral: Personal and/or real
Ideal for: Investments in equipment, expansion, acquisitions.
Limitation: Creates debt on the balance sheet, requires collateral, slow process.
What it is: A revolving credit line linked to a bank account.
Cost: 8-15% + commitment fee | Term: Immediate (if already approved) | Collateral: Personal
Ideal for: One-off, very short-term needs.
Limitation: Very expensive for continued use. Factoring vs overdraft comparison →
What it is: Equipment financing with a purchase option at the end.
Cost: 3-7% | Term: 2-5 years | Collateral: The asset itself
Ideal for: Vehicles, machinery, IT equipment.
What it is: Investment in exchange for a stake in the company.
Cost: Equity dilution | Term: Months of negotiation | Requirements: A company with high growth potential
Ideal for: Startups and tech companies in a growth phase.
Portugal 2030, IAPMEI, Banco Português de Fomento — there are dozens of support schemes with subsidised rates. The challenge is the bureaucracy and the approval times (months).
Ideal for: Strategic medium-term investments with advance planning.
It depends on the reason:
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