Points of contact when start-ups need loans


Many entrepreneurs and motivated people who are thinking of starting their own company are often faced with the question: How can I actually finance my project? Many come from unemployment, have a promising business idea, but do not get help from the employment office; others struggle to set up a solid financial plan and therefore find it difficult to get a loan.

Anyone starting up their own business,

Anyone starting up their own business,

Or rather those looking to start their own business should first think about what the financing should look like. Is there enough equity? Is the business idea promising and feasible in the long term? The first point of contact is always the family or acquaintances, who might add one or two euros for the start-up. If this is not the case, there are the so-called ERP loans (ERP stands for Enterprise Resource Planning), which are specifically aimed at start-ups who cannot show the necessary equity.

ERP loans are gladly taken up by many entrepreneurs, for example, they support the complete initial equipment of the business or help to finance upcoming storage costs. A solid financial plan is required to receive an ERP loan. There are numerous points of contact and advisors who help start-ups, especially younger people, to draw up this financial plan.

In addition, banks and credit institutions often require documents proving that, for example, adequate space has been found for the business and that the necessary registrations with administrations and health insurance companies have been taken care of. In addition, it is often required that the professional competence of the entrepreneur is proven. Many people who want to start a business find it very difficult to obtain a loan because usually a certain amount of equity is required in advance.

If you finally manage to get an ERP loan, you have almost overcome the most difficult thing, because this loan is counted against equity and has very low-interest rates. This results in significantly higher chances of obtaining another loan from other banks. Credit institutions that grant ERP loans to start-ups get their guarantees from other banks in other countries and assume full liability.

It is usually paid back in half-yearly installments

It is usually paid back in half-yearly installments

But can also be paid back in full. Another point of contact for many start-ups who need a loan is abroad. Since banks abroad are often less conservative than those in Germany, it is in many cases easier to get a loan.

Foreign credit institutions are happy to support entrepreneurs as soon as they believe that the new business is part of the country’s economic success. Entrepreneurs often find it difficult to get loans. So they have to provide countless documents and convince financiers of their business idea.

Once you have overcome this hurdle, there are particularly performance-oriented loans with good conditions for newcomers. A long term, low lending rates and repayment-free years – all of these offer loans for start-ups. Advice from various banks and other start-ups, as well as comparisons, should be made.