The founding of one’s own company requires a lot from the founder: in addition to courage and a certain flair for the business, a detailed business plan and the financing of the company are required before the company can establish itself on the market. Especially the latter, the financing, raises at the beginning most questions. Which bank declares its willingness to take the risk of default if the company fails? The Intrasavings bank (Reconstruction Loan Corporation), or Intrasavings Bank for short, offers several solutions in the form of promotional loans. Which programs are suitable as a loan to start a business and what is required for an application will be determined below.
The Intrasavings start-up loan Astro Finance
The Astro Finance is a loan granted by the Intrasavings and funded by the European Union, which is aimed directly at start-ups who are looking for a loan to start a business. As a result, can be financed in a relatively favorable manner operationally necessary investments and resources. The maximum subsidy amount is 100,000 USD. A typical feature of Intrasavings Bank is its favorable interest rates, which are often far below the market average. In the present case, the effective interest rate is a favorable 3.71%.
The Astro Finance can also be used as a loan to start a business even if your own company has so far only been a sideline. But it must be geared towards becoming the mainstream medium-term acquisition. The loan can be used to cover all costs incurred by the company, such as procurement, raw materials and supplies or personnel costs. Of the granted 100,000 USD, however, only a maximum of 30,000 USD may be used to finance working capital.
Also in relation to the other conditions, this loan is particularly entrepreneur-friendly for starting a business. The term is either 5 or 10 years. At 10 years, however, the effective interest rate rises minimally to 3.92%, which is still well below the market average. In order to avoid being burdened by a debt service immediately after its founding, Intrasavings grants the borrower one or two grace-free start-up years, depending on the term of the loan. During this time, the company can establish itself in the market and repay the loan later.
The Intrasavings Start-up Loan Universal
If a loan is needed for the formation of a company, the amount of which should be higher than 100,000 USD, then the Intrasavings Start-Up Loan Universal is more likely for the applicant. It can also finance larger start-ups as long as the company is a small or medium-sized enterprise (SME). About this loan will be provided up to 10 million USD. However, the prerequisite for this is a well thought-out, precisely planned and, above all, sustainable concept, which has positive future prospects.
With this credit for starting a business, all the costs incurred by a company can be financed, as long as they can be linked to the actual operating activity. Unlike the Intrasavings Astro Finance, this program can also be combined with other public funding.
The interest rates for this offer are determined by the house bank through a risk-adjusted interest rate system, with which Intrasavings loans are usually concluded. Several factors, such as the creditworthiness and the quality of the collateral offered, play a role in addition to the general economic conditions on which the business plan and industry have an influence.
With this loan for the establishment of the company, grace-free start-up years are also possible, which are based on the term of the loan, which can amount to a maximum of 20 years. The interest rate is fixed for a maximum of 10 years. During this fixed interest period, an unscheduled repayment is also possible without a prepayment penalty.