BOV introduces new product for family businesses

(source: Unsplash/Le Creuset)

Bank Of Valletta (BOV) has launched a new product called Family Business Success in collaboration with the Malta Development Bank and the Family Business Office, with the aim of facilitating the transfer of ownership between family members within family businesses, according to a press statement by BOV.

The BOV Family Business Success is for family businesses registered with Family Business Office and that would like to transfer part or full share of capital or capital ownership from parents to their children or among siblings through a takeover of the relevant family business, a reduction in the issued share capital, the payment and distribution of a dividend and the repayment  of any shareholder loans due by the relevant family business, according to the press statement.

The maximum loan amount is €750,000 at a competitive variable interest rate and can be taken for a period of between one and ten years, according to the press release says  

The Malta Development Bank will partially guarantee each loan transaction under an allocated fund of €10m in order to enhance the access to finance through a highly reduced level of collateral requirement.   

“Succession and transfer of ownership are crucial milestones for any family business, and tailored financing products are essential for a smooth transition and growth of the enterprise,” said Albert Frendo, BOV Chief Business Development Officer. “Bank of Valletta has always been at the forefront in assisting local businesses to flourish through the provision of financing solutions to suit their specific needs and through expertise drawn from years of partnering with SMEs and Family Businesses. We are proud to be the first bank in Malta to launch this innovative product, offering affordable finance to family businesses planning their future.”