Luxembourg

Business funding in Luxembourg

Luxembourg's economy is dominated by its financial services sector, including fund administration, private banking and holding company structures, which shapes a lending market unlike most other European cities of comparable size. Beyond financial services, a smaller domestic SME base still relies on conventional bank lending and leasing.

Who lends in Luxembourg

Structures that fit

StructureWhere it works
Fund financeBridging and subscription facilities structured for funds and holding vehicles domiciled in Luxembourg.
Term loanAvailable through domestic and international banks for established operating companies.
LeasingUsed for vehicles and office equipment across the professional services sector.
Commercial mortgageAvailable for office property, priced on strong local demand from financial services tenants.

Sectors we fund here

Practical notes

Businesses outside financial services should expect a smaller lender pool than in comparable sized cities elsewhere in Europe.

Fund finance structures require specialist legal input given Luxembourg's fund and holding company regulatory framework.

Office property remains in steady demand, which supports valuations but also keeps borrowing costs at a premium for smaller purchasers.

Questions

Is Luxembourg a good place to raise conventional SME lending?

It is possible but the market is smaller than the country's financial services reputation suggests, so expect fewer lenders and more emphasis on relationship banking.

What is fund finance and does it apply outside the fund industry?

It refers to lending structures built for funds and holding vehicles, such as subscription lines and bridging facilities. It is specific to that sector and not typically relevant to standard operating businesses.

Why is office property in Luxembourg well supported by lenders?

Sustained demand from financial services firms needing premises in the capital keeps occupancy strong, which gives lenders confidence in the underlying property market.

Tell us what the business in Luxembourg needs and we will structure the request and approach the providers whose criteria match. No upfront fees, charges apply only once funding completes.

Start a funding request