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BUSINESS

Harder for Sweden’s foreign-born entrepreneurs to get business loans

Entrepreneurs with a foreign background have more difficulty getting business loans than native-born Swedes, according to a study from the Swedish Agency for Economic and Regional Growth (Tillväxtverket).

Harder for Sweden's foreign-born entrepreneurs to get business loans
File photo: depositedhar/< ahref="https://depositphotos.com/185222366/stock-photo-handshake-of-business-partners-standing.html"> Depositphotos

Even when other factors such as the size of the company and whether it made a profit, the industry, and the age of the entrepreneur were taken into account, business-owners with a foreign background were still more likely than native Swedish peers to have problems getting funding in the form of loans, credit, or external ownership.

In general, only 12 percent of company-owners saw access to this kind of financing as an obstacle to growth, but that figure was much higher among those with a foreign background, particularly younger entrepreneurs.

“Because it doesn't seem to relate to poor finances within the company, it may depend on relationships between entrepreneurs and funding agencies,” said Corinne Uppman Helminen, project leader at Tillväxtverket, in a statement.

“Perhaps language, culture, and the method of doing business also play a role. We would need to know more about what the banks need in order to be convinces,” she added.

When looking at public funding, there were no significant differences based on the background of the company-owner.

The agency surveyed 10,000 small- and medium-sized businesses for the study, in order to “draw attention to how power systems in society interact, how hierarchies are created and how”.

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MONEY

How to avoid falling victim to tax scams in Sweden

Sweden's tax agency, Skatteverket, warns of an increase in scams when it's time for Swedish tax-payers to declare their taxes.

How to avoid falling victim to tax scams in Sweden

Anyone who earned more than 22,208 kronor last year received their tax returns digitally last week, marking the start of tax season.

That also means an expected peak in tax-related scams, Skatteverket warns.

Most of the scams are so-called phishing scams, meaning attempts to steal the victims’ personal information. Fraudsters may for example email a person, pretending to represent Skatteverket, and ask them for, among other things, their banking details.

“We’re seeing these in all channels. They use fake emails, SMS, letters and in some cases even phone calls. It is particularly common in tax declaration times – just when we’re about to send out the tax returns, the e-service opens and it’s possible to declare – but above all when it’s time for tax rebates,” Jan Janowski, a Skatteverket expert, told Swedish news agency TT.

A scam email might for example state that you’re entitled to a tax rebate and that you should click a link to receive it. Don’t click any links, open any attachments or reply to the message. Skatteverket advises that you immediately delete the email or text message.

Another common scam is that you receive a text message claiming to be from Skatteverket, telling you that you owe them money and you need to log in to calculate the amount. The website you’re urged to log in via does not belong to Skatteverket. Don’t click the link.

The agency stresses that it never asks people for their banking details. The exception is that you may be asked for your bank account information if you log into Skatteverket’s website to declare your taxes, but that always first requires you to log into the site.

To receive your tax rebate, you need to inform Skatteverket of your bank account number. You do this not by clicking a link in an email or SMS, but by logging into their website using a digital ID, for example BankID, and submitting your details. Only do this on your own initiative. If someone calls you and asks you to log in with your BankID during the phone call, don’t do it. That’s another common scam.

Skatteverket will also never call you to ask for your bank account or credit card number.

It will be possible to declare your taxes from March 19th. You’ll receive any tax rebate you’re owed by mid-April or early June, depending on when you submit your tax return. These are the dates when fraudsters are likely to attempt the most scams.

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