Yes, a company can obtain ENISA funding even if it already has active ICO loans. In fact, this is quite common among startups and innovative SMEs that have previously relied on bank financing.
However, having ICO loans can influence how ENISA evaluates the transaction and the company’s overall financial risk profile.
For this reason, what really matters is not the existence of the loan itself, but how it impacts the company’s financial structure, repayment capacity, and overall debt balance.
When ENISA evaluates an application, it does not focus solely on whether the company has ICO loans, but rather on the company’s overall financial health.
Key evaluation factors
- Total level of indebtedness
- Cash generation capacity
- Future repayment structure
- Equity position and shareholders’ funds
- Dependence on bank financing
- Viability of the business plan
The issue arises when the company accumulates excessive financial debt relative to its real revenue generation capacity or when the repayment schedule creates too much pressure on cash flow.
Why ENISA and ICO loans are different
Although both are financing instruments, they work very differently.
| ICO | ENISA |
|---|---|
| Traditional bank debt | Participative loan |
| Fixed installments from the beginning | Principal grace period |
| Defined amortization | Variable interest linked to performance |
| May require guarantees | No personal guarantees |
Precisely because of this, many startups combine both financing options to balance liquidity and growth.
If you want to learn more about the differences, you can read our article: 👉 Differences between ENISA participative loans and bank loans
When ICO loans can become a problem
There are specific situations where having ICO loans may make ENISA approval more difficult.
Scenarios
- Highly negative EBITDA combined with a high burn rate
- Constant cash flow tensions
- ICO installments disproportionate to available cash
- Weak shareholders’ equity
- High dependence on short-term bank financing
In these situations, ENISA may interpret that the financial structure is not solid enough to take on additional debt.
How to improve approval chances
If your company has ICO loans and wants to access ENISA financing, it is important to prepare the financial narrative correctly.
Key improvements
- Explain why the ICO loan was requested and how it is being used
- Clearly define the expected repayment schedule
- Show how ENISA fits into the company’s long-term growth strategy
Additionally, having a solid financial model, realistic projections, and a well-prepared ENISA business plan can make a significant difference during the evaluation process.
How we can help you at The Startup CFO
At The Startup CFO, we help startups structure their financing operations correctly and prepare ENISA applications with a strategic and financially coherent approach.
We analyze the company’s real financial situation, the impact of existing debt, and how to optimize the financial structure to maximize approval probabilities.
If your startup already has ICO loans and you are considering applying for ENISA financing, we can help you analyze the operation and prepare the application properly. 📞 Schedule a call with our team and let’s start working on your project.
