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Financing Entrepreneur – KfW Credit

The KfW credit offers entrepreneurs the opportunity to solve the initial problems of the financing. The step towards independence is probably one of the most significant in terms of the career. It is an often uncertain a step towards a certain independence but at the same time. Quite a few such projects fail in the first year but often is this less the idea to be implemented or fails at the structural paradigms, rather the financing business start-ups and the self-employed is the biggest problem. In particular the procurement of debt capital often represents an almost insurmountable obstacle. Often it means Germany is why no country for entrepreneurs? Too much bureaucracy and too much market? Because the requirements of the product must be really high, so that the product can be? All this may play a minor or major part, but the fact is that there are many funding programs, entrepreneurs and self-employed persons under the arms and the problem of financing solve able are.

The most popular point of contact when it comes to obtain loans for business start-ups is the KfW (Kreditanstalt fur Wiederaufbau). KfW offers a number of funding programmes for small businesses, freelancers, and founders of new businesses. A KfW credit is requested via the House Bank and the difference to a normal loan from the bank credit is the KfW risk when KfW, rather than on the House bank. Financed up to 50,000 euro on this is in many cases venturing more than enough to take the step towards independence. Among the conditions, which are awarded for the loans are what is special about the KfW credit. Entrepreneurs have a great advantage in particular about the interest rate, which is far below that of a normal loan. The KfW granted a contract period of maximum ten years in their programmes for entrepreneurs. It is also a feature of KfW loans that you can request a grace period as a borrower and thus the repayment anything can postpone.

This grace period are usually the first two years but you should be following aware: these maximum two years, which of course constitute a large relief, significantly higher burden regarding the repayment rates on a coming to. “Now one can not imagine but that, that one just like” a KfW loan and who is then approved. What is needed here as a condition of a relevant concept and business plan, which has no gaps and is also structurally coherent. In short, The business plan must convince! And also as entrepreneur you must sell well of course his idea. By the KfW credit entrepreneur can often more than amply the needs financial and also the monthly loads are initially very low, so that entrepreneurs can focus exclusively on the start-up phase of their business. When KfW there is no paying compensation of the KfW credit so can at any time with special payments in addition redeemed are.

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