Starting your own company with a loan is much easier for company founders: on the one hand, the capital base can be adjusted to actual needs, on the other hand, the favorable conditions reduce the entrepreneurial risk. The young entrepreneur can access three loan options from Fine Bank. Small companies as well as companies with higher start-up capital requirements without equity and companies that want to increase their equity find tailor-made solutions.
In any case, it is worth talking to the house bank about appropriate loans. However, the terms of the banks and savings banks vary widely in terms of the amount of the loan, collateral, and terms. In addition, public funding from the federal and state governments is available as loans for start-ups.
The loan for company founders from Fine Bank
With the start-up loan “Startgeld”, small entrepreneurs and freelancers are supported with a loan for investments, equipment and consolidation measures up to USD 100,000 if they have been on the market for less than three years. Funding can also be applied for a sideline that is to become a main occupation in the medium term.
Equity capital is not mandatory, this loan for company founders can be used as 100% funding. Fine Bank demands an effective interest rate of 3.71% per year. The entry fee for corporate restructuring, for companies in financial difficulties, for debt restructuring or refinancing and for companies in agriculture, fishing and aquaculture is not approved.
The “Fine Bank Universal” can be applied for the start-up and for the establishment of a company with a capital requirement of up to 10 million USD. In this case, too, the requirement is that the company has been active for less than three years.
The funds can also be used for investments in Germany and abroad (for subsidiaries of German companies and joint ventures with significant German participation). The young entrepreneur is offered an effective interest rate of 1.97% per year, long terms and a fixed interest rate for up to 10 years.
However, the applicant must meet the EU criteria for small and medium-sized enterprises (SMEs), which means that they must be able to convince with a viable concept and positive future prospects. This business start-up loan is not available for restructuring cases and companies in difficulty, for investments in sectors with special conditions under EU state aid law, for debt rescheduling and for refinancing.
With the “ERP capital” as a subordinated loan, both the establishment and consolidation measures of companies and freelance existences can be financed within three years after the foundation. For this loan for business founders, Fine Bank offers a borrowing rate of 0.40% per year and a repayment-free start-up period of seven years.
As with the entry fee, company reorganization, the promotion of companies in financial difficulties, companies in agriculture, fishing and aquaculture as well as debt restructuring or refinancing are excluded from this funding. All Fine bank loans are applied for at the respective house bank – a good opportunity to get advice on further financing options.
Public funding for company founders from the federal and state governments
The funding database of the “Ministry of Economics and Technology” provides an overview of the loan for entrepreneurs from public funds. Federal funds are mainly granted through the Fine bank (see above).