Starting a Business in Berlin

70 71 Starting a Business in Berlin A Beginner’s Guide loan), you can ask the BBB Bürgschaftsbank zu Berlin-Bran- denburg GmbH to act as a guarantor. How to set up bank financing A business plan is submitted to the bank complete with the necessary documenta- tion The bank checks the paperwork and evalua- tes the creditwort- hiness and collateral The bank makes a decision The applicant and bank conclude a credit agreement The money is paid out Minimum requirements for bank financing ls Promising concept ls Ability to make interest payments ls Standard bank collateral ls Personal assumption of liability BANK LOANS WITH PUBLIC FUNDING Public funding options can also be included in the finance required to set up your company. Generally speaking, this is a grant for individuals in the form of loans with special conditions, guarantees or also subsidies. As far as these are concerned, it is always important to submit your application before starting your venture. It is only once you have submit- ted your application that financial and contractual obliga- other financing models. As for IBB Ventures and KfW, these award open investments. In such cases, a private investor who is involved on equal terms with at least half of the total is always required. The MBG grants silent partnerships, i.e. with no voting rights , influence on the management or par- ticipation in the appreciation of the company. What’s more, for those setting up their business after a period of being un- employed, or perhaps with a migrant background, the MBG offers a special investment programme of up to 50,000 EUR. CREDIT FINANCING FROM FINANCIAL INSTITUTIONS As in-house funds are rarely sufficient and equity financing is not suitable for every venture, you may need to top up the capital requirements with credit from the bank (also cal- led loans). Depending what it is that needs to be financed, regular banks and savings banks offer various different lines of credit. Investment loans can be used to finance fixed assets for new, alternative or expansion investments and are guaranteed for the medium to long term. With capital loans, you can cover short-term financing requirements such as personnel costs or marketing expenses, and also pre-finance orders. In addition to demonstrating a promising concept, another decisive factor for banks and savings banks when it comes to granting credit is their ability to remain protected. To this end, they generally request standard bank collateral that they can fall back on in the event of a credit default. Ex- amples of collateral include mortgages, chattel mortgages on machines and vehicles, or fixed deposits. If you do not have enough collateral available (to cover the amount of the High-Tech Gründer- fonds (venture capital investment firm)  htgf.de/en IBB Beteiligungsge- sellschaft mbh  ibbventures.de/en Mittelständische Beteiligungsge- sellschaft zu Ber- lin-Brandenburg mbg-bb.de Coparion funding from the KfW Banking Group  coparion.vc/en Business Angels  bacb.de/en CHAPTER 6