What is a business loan?

The Unternehmerkredit was specially developed for start-ups and the self-employed. If you apply for a business loan, your project will be examined by the bank and the amount of the loan will be agreed individually. A decisive criterion for you as an entrepreneur to be granted a loan at all is the selection of the right legal form for your company. As with the application for a private loan, your company is assessed by the credit institution using a rating procedure. The criteria used are not uniform. The following article provides information on the concrete advantages of an entrepreneurial loan and how it is processed in detail.

Advantages of a business loan

A special entrepreneur loan offers you the opportunity to obtain financial means to build up your own business. The loan amount is available to you at any time after application and approval. Getting an entrepreneurial loan is much more complicated than getting an official loan approved. The reason for this is that as an entrepreneur you do not receive a regular income and can provide proof of it. Ideally, you should not only have innovative ideas, but also motivation and performance, which can have a positive effect on the development of the economy, and with a little luck an entrepreneurial loan will be approved for you. An entrepreneur loan gives you the financial leeway to react flexibly to technical innovations in your industry, even if the available budget is not sufficient.

Entrepreneur loan at special conditions for start-ups

Some credit institutions offer you an entrepreneurial loan at attractive special conditions if you want to set up a business as a start-ups. As a founder of a new business, you may, for example, make special repayments on In concrete terms, this means that you can flexibly decide for yourself whether to repay your start-up loan in one sum or increase the monthly repayment instalments in order to lower the loan amount and thus the interest rate. If, contrary to expectations, your company does not perform as well as you expected, a start-up loan gives you the opportunity to apply to your lender for a reduction in the monthly instalments. Normally you will not be charged for any additional costs. For start-ups, an entrepreneur loan is a flexible universal loan.

Apply for a business loan for start-ups

You can only apply for an entrepreneur loan for start-ups at attractive interest rates from KfW Bank. This credit institute has set itself the goal of providing optimal financial support for start-ups and medium-sized entrepreneurs. The loan amount for the entrepreneur loan is limited to a maximum of 10 million euros. If you wish to use the loan amount for investments, KfW Bank guarantees you an additional 50 percent indemnity against liability.

Requirements for Entrepreneur Loans

Before you are granted an entrepreneur or start-up loan, you need to complete a few formalities. For example, you must credibly prove that you have the necessary professional and commercial skills. In addition, your incorporation must serve your main acquisition. Companies from Switzerland and abroad may apply for a loan if they are mainly privately owned. In the case of group sales, the total sum may not exceed 500 million euros. If you want to set up your company abroad, foreign joint ventures or a subsidiary or a German company that holds at least 30 percent of your company’s capital may not be established. apply for an entrepreneurial loan.

Collateral and redemption

As an entrepreneur, you must also offer the bank the usual securities when you submit your application. The bank will inform you about the scope of the collateral. As a founder of a new business, you determine the credit period and can opt for a first year without repayment.