For Start-ups


Loans, public grants
Financing volume
A few Euros (current account loan) up to EUR 25 million (public development loan) or more
Preparatory work
Business plan with CV, bio, credit application
The time until a financing decision is reached
depends on the financing volume, normally a few days up to approx. two weeks from the time that the documents are complete; for development loans approx. two to four weeks or more
Financing term
a few months (current account loan) up to approx. 20 years (investment development loan)
Interest costs if insufficient capital: Costs of a security
Ongoing costs
Ongoing reporting, the usual banking documents (e.g. annual accounts, business assessments, order book)
Potential exclusion criteria
Low credit rating (General Credit Protection Agency, bank reference) no equity, start-up team has insufficient qualifications (technical, business management), market potential cannot be identified
Best suited to ...
established business concepts with comparably good, predictable yields
Equity capital
Equity capital can be obtained from savings or securities but also from assets which can be used for security (life insurances, building society contracts, property, etc.). Contributions in kind are also possible. These include property, plant and equipment (machinery, installations, vehicle fleet, etc.) as well as intangible assets (e.g. patents or licenses). However, it can often be difficult for company start-ups to value contributions in kind. Start-ups normally set a higher value for contributions in kind than banks. Banks set their value based on the amount that a contribution in kind can generate if sold.
There is no binding rule stating how much equity you will need in relation to your capital requirement. However, a healthy equity base is key for a successful company and reduces the risk of liquidity problems.
If you have insufficient equity capital, you should determine whether you might find business partners who can contribute liability capital to the future company. Given the loan guidelines of banks and savings banks, a high equity ratio is an important factor in the loan decision.
Public grants
The federal state of Baden-Württemberg and the federal authorities support company start-ups through public grant programmes. Low-interest loans, public securities, capital investments and other measures make your route to independence easier and increase the chances of your start-up’s survival. But these general requirements must be met:
  • Start-up founders must have sufficient technical and business management qualifications.
  • The start-up project must promise economic success.
  • Funding applications must generally be made via a bank of your choice to the
  • relevant funding institutions (domestic bank principle). The applications must be submitted in writing before the intended investment measure starts. A project starts when the investment measures can be accessed or when financial obligations are undertaken.
  • The public financing aids must be secured in accordance with the usual banking requirements. If this is not possible, you can apply for securities from the Baden-Württemberg Guarantor Bank or from L-Bank.
  • You do not have a legal entitlement to public funding aids and securities.
The funding institutions provide finance for new start-ups and  ensure that they can become established, for taking over an existing company and for acquiring a holding (e.g. if a managing shareholder wants to buy into a limited liability company). Funding is available for all investments in material assets required for the business (business furniture and equipment, vehicles, building, land, etc.), market acquisition and advertising costs, initial inventory and operating materials as well as staff and rental costs incurred in the first few months. Funding applications must be submitted via a bank. Since a preliminary check will already be performed at this stage, the applicant should present a substantiated business plan (add link). Generally speaking, the funding programme chosen depends on the amount of your equity capital, your third-party capital requirement and securities. The guarantor bank may help to provide securities for the funding programmes if necessary.