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When a loan for founders makes sense and when not

You want to start a business, but you lack the financial resources, for example to rent a shop, to position yourself online with your business etc.? In short: You need money to realize your dream of owning your own business, which is why a start-up loan or an online loan can make sense in your case.

Do you as a founder necessarily need a loan?

Do you as a founder necessarily need a loan?

This depends mainly on what type of business you want to start and what financial resources you already have.

Does not make sense to borrow, if you:

  • already have sufficient financial resources.
  • You can borrow the money you need to start up from a private person.
  • already highly indebted and no longer creditworthy.
  • You are not sure if and how much revenue you will make with your business.

It makes sense to borrow if you:

  • Get good sales from your business, so you can continue building your business, and you can repay the installments for a loan on time.
  • not otherwise heavily indebted.
  • from a private person, such as family or friends, no money borrowed.
  • already has capital in the form of, for example, real estate or other capital investments and can not use this money to start up a business.

Business start-up loan or instant loan for your self-employment?

Business start-up loan or instant loan for your self-employment?

If you have to take out a loan to start a business, a business startup loan is ideal because this loan is issued starting at 2.07% APR. The Kreditanstalt für Wiederaufbau supports the collateralization of the loan. Lending is granted to full-time self-employed as well as self-employed in the provisional sideline.

A loan for start-ups is associated with favorable conditions. The problem is, however, that you only get such a loan if you create a viable business plan that shows that your business is promising. The loan is only available for start-ups. If you have been self-employed for more than five years, you will not be granted the loan.

If you need a non-government funded start-up loan

This can be the case if you have been self-employed for more than five years and want to grow your business, for example. In this case, we recommend an instant loan. Although such a loan incurs higher interest rates, you are usually unbound in its purpose. To apply for an instant loan, you do not need to create a business plan. However, it is important that you are creditworthy and have financial guarantees or a guarantor.

Can a loan without credit bureau be a solution if there is already a credit bureau entry?

Can a loan without credit bureau be a solution if there is already a credit bureau entry?

If you are already registered with the credit bureau, it is usually difficult to get a start-up loan. In this case, it is advisable to look for a loan without credit bureau. However, even if you have a loan without credit bureau, you need collateral, such as property, investments, guarantors, etc. “Without credit bureau” simply means that lending is not registered with credit bureau.

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