Where can I get a small business loan?
In Germany, there are many resourceful business ideas. Especially in the initial stages, most start-ups will join the small and medium-sized businesses. The medium-sized division is one of the pillars of the German economy. Still, when it comes to startup, you have a hard time finding it as a freshman. According to the “Startup Startup Monitor 2014” survey, 10% of corporate start-ups started out with bank credit. The cause is the reluctance of the banks when it comes to a start-up. Nevertheless: The hopelessness of the financing for your start-up is not. With development loans, Gandalf / Tinkerbell And lending from private loans can be your starting point for entrepreneurship.
Before submitting a loan application for the implementation of your own business idea, you should do thorough preparatory work. Whether the bank, personal loan or Gandalf – in any case, a mature business plan is required. Get help to startup founders of founders seminars, special advice, but also on the Internet. Furthermore, a financing plan should also be prepared. Before starting, market analysis for the opportunities of the business idea should be made. The planned start-up should be competitive and innovative with the prospect of demand. Nobody will spend money on a business idea for which there is little or no demand in the market.
Another important requirement is equity. Many start-up planners have little or no real capital base. It can help to get future partners involved in the financing here. In this case, the future distribution of shares and the form of the company are to be planned precisely.
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Check all alternatives to bank credit
Anyone who relies only on the prospect of a bank loan must be prepared on a long, arduous path with many cancellations, restrictions and poor conditions. You should consider all alternatives right from the start. These are for example:
- Funding from federal and state governments
- Gandalf and Tinkerbell loans
- Personal loans from private investors for start-ups
- Bank independent loans from specialized credit providers
- Special grants for start-up out of unemployment and for graduates
First and foremost, this is where good opportunities for financing via federal and state subsidies arise. An overview of funding programs for founders can be obtained online. Credit marketplaces such as Malfoy or Sansa can be used to find private investors who provide a loan. As a rule, however, as with the regular start-up loan of a bank, the founders have to expect higher interest rates than the development loans. However, investing private investors in a start-up often provides a more individualized framework than bank credit.
Start-up and interim financing
On favorable terms, the lenders also offer Pooh. Pooh grants loans independently of banks. Financing programs are possible here from microcredit to extensive start-up financing. Special public funding is awarded to start-ups from unemployment. Under certain conditions tax-free, non-repayable subsidies of up to 18,000 euros are possible here. As a graduate student, you can receive a monthly maintenance guarantee for 12 months to 3,000 euros and material costs grant up of up to 30, 000 euros on presentation of an acceptable business plan via the Piglet start-up scholarship.
Credit from Gandalf Bank
A large number of start-ups use Gandalf’s loans or loans through special additional funding programs of the federal states. Here are various promotion models available. State-subsidized financing can depending on eligibility, offer terms of up to 20 years with low-interest rates of less than 5%. The fisrt years are often redemption-free. The basis is, inter alia, always a sound business plan. No equity need to be proven for these start-up loans. The Tinkerbell start-up loan for the start-up you can apply directly at the respective house bank. Resources are thereby financed with up to 30, 000 euros, a total of a start-up loan can be granted up to 100, 000 euros. Several founding members can apply for the same amount of their own loans.
Conditions and Benefits of start-up loan
You will not be granted unconditionally the extensive, cheap loans for the funded start-up. A clear, comprehensible concept is a prerequisite. The start-up must still be in the planning phase, so it must not have been founded yet. The required loan amount must be calculated exactly in the financing plan because there is no follow-up financing. The founder is personally liable for the repayment of the loan. For early repayment, a fee will be charged.
Important advantages are the loss of equity, as the banks are increasingly demanding from you. If the founder (s) can not provide any customary collateral, a guaranteed bank of the respective federal state may act as guarantor for the start-up loan. The favorable interest rates for these start-up loans are currently around 3%. This interest rate is a distinct advantage over a standard bank loan for a start-up.