Are you looking to grow your business in Germany? Are you in need of capital to accelerate your business growth? This is exactly what the so-called “ERP Start-up Loan Universal” from the KfW is all about. We will show you exactly what their loan program is about and how you increase your chances to receive it. The loan can cover up to 25 Million Euros of your expenses.
What Is the KfW?
The KfW or Kreditanstalt für Wiederaufbau is a German development bank. It is the largest national development bank in the world. KfW promotes German SMEs and start-ups with traditional promotional loans and other innovative financing. As the KfW takes over 80 – 90% of the risk from your bank, it is easier to secure the loan.
What makes it special?
“The loan interest rate is more favorable than for a conventional bank loan; it is fixed for up to 10 years, or even for the entire term. On request, 1 to 3 repayment-free years may be granted; that means you only pay interest and start repaying later.”
Eligible are founders of new business and company successors, self-employed professionals, freelancers and small and medium-sized enterprises. Your company must not be older than 5 years at the application.
What is the process?
You do not apply for your loan directly at the KfW, but at your bank. This can be a commercial bank, Sparkasse or Genossenschaftsbank. A meeting with the bank consultant is mandatory, as he will advise and examine your application. A sophisticated business plan in German is the foundation for the approval process.
After the conclusion of the credit agreement, the loan can be used for the following:
- Investment costs (e.g., operating and office equipment, company vehicles, furnishing)
- All types of current operating expenditure
- Material and warehouse
The aid product is not eligible for:
- Construction measures for “Assisted Living”
- Self-dealing, e.g. the acquisition of own shares
- Debt rescheduling (exception: debt rescheduling under the KfW Quick Loan 2020)
- Distribution of profit and dividends
- Follow-up financing, follow-up financing and prolongations.
Tip: In principle, the ERP Start-up Loan – Universal can be combined with other subsidies (loans, allowances and grants). A combination with the KfW Quick Loan 2020 or other KfW/ERP programs with risk assumption is excluded.
How Do I Increase My Chances of Receiving the KfW Loan?
The application process is difficult and time-consuming. Hence it can be advisable to get professional help from experts – We at M&M Consultants already helped numerous enterprises in Germany to receive the loan and we can help you too. We not only write you a perfect business plan, we also support you during the on-side appointments so that your chances of receiving the loan are maximized. Contact us and receive a free consultation!