FINLAND Law and Practice Contributed by: Timo Lehtimäki, Niklas Thibblin, Essi Hietaoja and Oona Honkamaa, Waselius
8.3 Application of Insights Borrowers, in particular, can look to private cred - it deals with a view towards getting more tailor- made financing, with greater flexibility compared to traditional lending. Meanwhile, lenders (in particular, first-time lenders in the Finnish mar - ket) can draw comfort from the fact that most structures have been tried and tested before in traditional bank financings. Non-Finnish lenders will feel right at home in finding that the Finnish market uses LMA template-based facility and intercreditor agree - ments, and that many borrowers are willing to accept English law as the governing law of the main finance documents.
tailored repayment schedules, more lenient cov - enants, or bespoke risk-sharing arrangements), which have outweighed the typically slightly higher margin. Private credit is also generally able to move faster than traditional banks, mak- ing tight deal schedules much more realistic. In addition, recent transactions also illustrate how private credit fills the gap for SMEs that may struggle to secure funding from traditional banks. Therefore, private credit may be better suited for SMEs, particularly in markets where traditional lending criteria is tight, or when com - panies require more specialised debt solutions to increase growth or cover short-term liquidity needs. Private credit providers have also proven to be sensible and commercially oriented partners in distress (and potential distress) scenarios, and not as different from traditional banks as some feared.
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