The Mutualité de Cautionnement has expanded its offerings to better support entrepreneurs in Luxembourg by introducing an innovative guarantee called “BOUNCE.” This program provides a new financing solution, covering up to 80% of bank loans for entrepreneurs looking to diversify their risk or lacking sufficient collateral for their projects.

Key Features of the BOUNCE Guarantee

The two-year BOUNCE program offers a guarantee on bank financing, structured as follows:

·For loans up to €150,000, Mutualité de Cautionnement guarantees up to 80%.

·For amounts exceeding €150,000, the coverage drops to 50%.

·The maximum commitment for any single project is €500,000, with a duration cap of 10 years.

For example, if an entrepreneur seeks financing of €120,000, BOUNCE can guarantee €96,000 (80% of the loan). For a €180,000 loan, the first €150,000 is guaranteed at 80%, and the remaining €30,000 at 50%, providing a total coverage of €135,000.

Application Process

To qualify, entrepreneurs must first secure a bank-backed financing project. They can then apply for the BOUNCE guarantee by either:

·Contacting Mutualité de Cautionnement directly with their bank advisor's details and a brief project description, or

·Asking their bank advisor to initiate contact with Mutualité de Cautionnement.

The Mutualité de Cautionnement collaborates directly with the bank to gather required information, review the application, and provide a decision within one week, streamlining the process for entrepreneurs.

Guarantee Cost and Coverage

The cost of the BOUNCE guarantee ranges from 0.5% to 1% of the guaranteed amount per year. This premium is paid by the entrepreneur when the guarantee is issued, with no additional fees thereafter. In the event of a default, Mutualité de Cautionnement covers up to 80% of the outstanding balance.

Supporting Entrepreneurs: A Tradition of Risk-Sharing

Founded in 1969, the Mutualité de Cautionnement has a long history of offering guarantees to help entrepreneurs and small-to-medium enterprises (SMEs) in Luxembourg. Known for its motto “Sharing Risk,” the organization helps secure financing for viable projects across various business stages—whether creation, expansion, modernization, or succession. Through BOUNCE, Mutualité de Cautionnement continues its mission of bridging the collateral gap, providing SMEs with enhanced access to capital and risk management options.

Mutualité de Cautionnement also offers a range of advisory services through its partnership with Luxembourg’s House of Entrepreneurship. Entrepreneurs can access free support for business creation, financing advice, state aid information, business plan development, and more.

For more information about BOUNCE or other guarantee products, entrepreneurs are encouraged to consult their bank advisor or contact Mutualité de Cautionnement directly.

Contact Information
Mutualité de Cautionnement
14, rue Erasme L-1468 Luxembourg-Kirchberg
Email: cautionnement@houseofentrepreneurship.lu
Phone: (+352) 42 39 39 - 878