KfW Gründerkredit

October 19, 2022

The KfW Gründerkredit is a state-subsidized loan for company founders and young entrepreneurs in Germany. However, in order to get the loan, you must meet certain requirements. In this article, we will explain the requirements for the KfW Start-up Loan in more detail and give you an overview of the KfW Start-up Loan.

What is the KfW Förderkredit?

The KfW Gründerkredit is a state-subsidized loan for company founders in Germany. The loan can be used for various purposes, such as financing investments, working capital or setting up an office. The KfW Gründerkredit is low-interest and back payment is flexible. 2

What requirements do you have to meet to get the loan?

The KfW Gründerkredit is a grant program for company founders in Germany. The program was developed to help founders implement their ideas and get off to a successful start. Accordingly, the start of your business activity must not be longer than 5 years ago. Before you can apply for the KfW Start-up Loan, you must meet a few requirements. First of all, you have to create a business plan. DIn addition to your business idea, your target group and your marketing plan, this should also include an investment plan, a liquidity plan and a profitability forecast. Since you are not allowed to apply directly to KfW for the KfW Start-up Loan, you will need a financing partner who will also support your project. Any commercial bank, cooperative bank or savings bank can be considered as a financing partner. You tend not to have to use equity capital, but it is recommended as you will go through a credit check. This is a check of your creditworthiness.

How much is the loan?

The KfW start-up loan can amount to up to 125,000 euros. Of this, up to 50,000 euros may be used for working capital. By founding a company as a team, the credit amount can be increased, as in this case each founding team member can apply for 125,000 euros. If you do not need the entire credit line, you can apply for the credit more than once, but the upper limit remains.

[...] Together we rewrote the complete business plan within 2 weeks, determined the needs and discussed the appropriate procedure. On time we were able to submit the documents to the bank after 2 weeks.At this point I would like to express a big thank you to Mr. Schipper, because today (2 weeks after submitting the documents) I got the loan paid out. This is most likely a life changing event that would not have happened without the help of X-Group. This experience has also allowed me to grow a lot as an entrepreneur and thus scale my business to a higher level. […]

Dominik Fischer

What is the term of the loan?

The KfW start-up loan can be taken out for 5 or 10 years. With the first variant, the first year is repayment-free, with the second variant, the first two years are repayment-free. The loan can be called within 9 months after the loan approval. If you wish to repay the loan in full or in part off schedule, this is possible for an early repayment fee.

What interest rate do you have to pay?

If you choose the founder loan with a term of 5 years, the maximum interest rate is 3.93% debit interest (4.00% effective interest). If you choose a term of 10 years, the maximum interest rate is 5.08% debit interest (5.20% effective interest). A commission of 0.15% per month is charged for providing the loan. This starts 6 months and 2 banking days after the commitment.

The X-Group team provided me with professional support in developing my idea for a digital product into a complete corporate structure from A-Z. In the process, my business idea was scaled from what was originally a small project to an unexpectedly large company. In addition to a top start-up consultant with whom the collaboration on the business and financial plan was great fun, I was competently supported by the entire team of the X-GROUP in all areas from marketing planning, sales and personnel structure, to investor search and funding opportunities and accompanied until today. If you want to become self-employed, I can only recommend that you contact us here.

Flo

How can you apply for the loan?

The application for the KfW Start-up Loan is done in a few steps:

1. prepare application with the X-GROUP

In a free initial meeting we plan your funding strategy. Subsequently, we prepare your business documents with you, with which you convince the bank (your financing partner) and finally the KfW.

2. find a financing partner
As mentioned, the application must be made through a commercial bank, cooperative bank or savings bank. You have to win them over for your project with your business plan.

3. apply for a loan
Once you have convinced your financing partner, they will submit the application to KfW.

4. review
KfW checks your documents and decides on the funding.

5. conclude loan agreement
After KfW’s approval, you conclude the loan agreement with your financing partner and you can start implementing your project.

support with the application

To convince your financing partner and later also the KfW you need a promising concept, which is reflected in your business plan and especially your financial plan. We at X-GROUP have been supporting founders and entrepreneurs in the preparation of their documents for 20 years and know what is important. We would also be happy to prepare you for your pitch to the bank. We would be happy to discuss your project and our options in a free initial meeting. Arrange a free initial meeting today:

Michelle Sagner:The coaches of the X-Group have helped me a lot with their expertise, so that I can now start my self-employment with confidence. Thank you for your knowledge, patience and humor! I can only recommend the coaching!

Michelle Sagner

Professional and individual! I can only recommend the X-Group to every founder. Mr. Wagner supported me excellently in the preparation of my business plan and other questions, always took my personal requirements into account (topics, deadlines, etc.) and was always available for questions. A very good experience.

Kurt Woischytzky