Suppose you want to start your own business and you need start-up capital for this. How do you approach this as smartly as possible and above all: Who do you borrow money from?
Setting up your own company with start-up capital
If you start your own business, you will probably depend on an external financier. You need seed capital. How much money you need to borrow depends on the type of business you start. The chosen legal form is also important. Few entrepreneurs can start their own business without the help of an investor or investors. You collect a little capital by using government subsidies. For a real financial injection you usually depend on the bank. Below we will briefly discuss a few options with you.
Opportunities to borrow money for business start-up
What are the options for starters in the financial field? Starting entrepreneurs often find it difficult to find financing. Many banks are not exactly eager to support entrepreneurs starting a business financially. The problem? The lack of annual figures. With a good business plan you have a bit more chance. As a self-employed person, however, you need less starting capital than, for example, an SME. However, today banks increasingly offer special loans to self-employed freelancers and SMEs.
Another possibility to obtain starting capital is by using crowdfunding. You subscribe to a crowdfunding platform and place a call. That call must of course be accompanied by a good idea and plan. External financiers (this can be private individuals or organizations) can invest money in your company. They ask interest on the loan amount or share in the future profit. It just depends on what you arrange. Existing entrepreneurs can also collect venture capital in this way. The investors also derive tax benefits from this.
Finally, as a starter you can benefit from various government subsidies. That can be a good addition to borrowing money. Some small self-employed people do not have to borrow money at all thanks to these subsidies. A government subsidy is intended to start (or expand …) a company. A well-known subsidy is, for example, the BMKB. This is the Guarantee for SME loans. With such a subsidy, the government guarantees the company to be started. As a small entrepreneur, you cannot claim this. The guarantee is only suitable for large companies (up to 250 employees).