The microcredit – a chance for a loan for startups

Self-employed, freelancers and founders have a hard time taking out loans. Lack of collateral in the form of a regular income and the increased risk of self-employment preclude approval by the house bank and many private banks. But to open a business or start your own business you need money.

Here is the chance of microloans, which you can get in different ways and apply as low-interest microloans in Germany. These offers for a company founder loan should be explicitly compared, because the conditions of the founder loans are different and also the general conditions vary.

The advantages of a microcredit:

A microloan can provide financial support to founders and young entrepreneurs if their equity capital is insufficient

The specific focus on startups makes for optimal terms for this purpose of the loan

Microloans thus create the basis for business and self-employment

With a microloan, your dream of owning your own business can come true even without the equity you need

Alternatively, you can consider whether your financial needs can be financed, for example, through a grant instead of loans for founders. Not only microloans from the KfW, but also other start-up support without repayment obligations are very interesting for budding entrepreneurs.

Microloan FAQ

What is a microloan?

A microcredit is a loan up to a sum on 25.000 euros. This loan is aimed specifically at start-ups and is therefore tied to a business plan and a profitability forecast. The granting is relatively uncomplicated, however the bank secures itself and takes a credit analysis and a higher interest rate.

Microcredit as a solution when the equity capital is not enough for the start-up

A microloan is a loan that can provide up to 25.000 euros is awarded. At the same time, these special company start-up loans are explicitly aimed at start-ups and are thus tied to a business plan and a profitability forecast. Often a microcredit is the only way to create the basis for the business and to be able to build self-employment through the loans for founders.

These microloan providers exist:

The granting is relatively uncomplicated and excludes the risks of a refusal, which you would have to accept as a founder with the house bank. Nevertheless, there are some requirements to be met in order to get the microcredit and to be classified by the credit institution as a plausible and economically thinking young entrepreneur. Even if the assessment, for example, the view of your creditworthiness is much looser, the bank hedges and takes for this reason a credit analysis and usually a higher interest rate.

Interest and condition comparisons with the credit for existence founders

Tip

In principle, microloans from KfW are the best solution for setting up a business. KfW specializes in supporting young entrepreneurs and can therefore offer the best possible conditions. More and more banks are following suit, however, so it's definitely worth comparing the various providers.

The fact is that KfW's reputable and affordable microloans are proving to be the best solution for entrepreneurs. Unlike private providers and institutions, KfW specializes in supporting startups and young entrepreneurs, which makes the terms more optimal than a microloan offered elsewhere.

But more and more online banks are also granting microloans in Germany and have special financing offers for founders and start-ups in their portfolio. A comparison is always worthwhile, especially since you may receive particularly favorable interest rates and faster processing of your request on the open financial market. There is one thing that all microloans from KfW and from the free financial market have in common.

This is important

Microloans are earmarked financing, the purpose of which you must document and prove to the lender. The basic requirement for a microloan for founders is also clearly defined. You need a profitability forecast, business plan and concept that describes your future venture and gives the lender a basis for credit analysis and probability of success.

The more plausible your concept and profitability forecast are, the more favorably you can finance and the lower the interest rates are with the microloan. Compare online and get an overview of where you can get the cheapest microloan and not have to pay back more than necessary for founders loans.

Online founder loans as low-interest and uncomplicated company founder loans

If you want to start up successfully, you cannot avoid an investment. Therefore, loans are not only a solution for founders, but often the only chance to realize the dream of start-up or self-employment. With the microcredit for founders, there are clear guidelines on what the money may be used for and what may not be financed through the loan for start-ups.

Tip

Since you sign a use agreement with the contract, you should keep careful records and fix your purchases. A great advantage of the microcredit is its deferral until the first installment is collected. For example, microloans from KfW can be postponed up to six months before the deadline for the first installment is approaching and should be paid on time by you.

In the past, microcredits in Germany were hard to find. But today you have the free choice of choosing the largest microcredit lender, the KfW, or an offer on the free financial market and thus various company founder loans in comparison to consider. The application process is quick and straightforward.

Microloans from KfW – secure microloans for startups and young entrepreneurs

This microcredit is a loan granted from the European Social Fund specifically to founders and self-employed people. While many microloans are not granted by banks with a negative Schufa or niche trades, the KfW does not overly assess the creditworthiness of the founder.

For example, you can apply for these founder loans even if there are older entries in your Schufa. The only important thing is that the debts have been settled and that there is no dunning notice or garnishment order against you.

These loans for founders are granted for the purchase of working capital, as low-interest start-up capital, for other business purchases and as consulting loans with up to 90% subsidy. If you meet the requirements for microloans from KfW, you decide with this loan for start-ups for a safe and low-interest start in business.

Are there cheap microcredits in Germany or is the foreign financial market more interesting??

During your research on the Internet, you will increasingly come across offers that do not come from German lenders. But if you want to start your business, it is better to focus on microloans from Germany and avoid the foreign financial market. Even very favorable interest rates and the promise of fast lending should not cloud your view.