Documentation

Information on financing and public funds

Money talks...especially for founders of new businesses! A sound financing plan is therefore the starting point for further considerations, such as the availability of public funds. Banks can provide you with information and advice.

Here you can find information on finance planning, public funds, and banks.

Financial planning

Very few new business founders are in the position to provide their own starting capital. Most of it as a rule needs to be borrowed. The proportion of one's own money to borrowed money must be right. Determining the short-term capital required is thus also part of a sound business founding plan. Don't forget that the time before starting a business also costs money.

First determine the amount of necessary investments: how much money do you need in the long run, for example, to cover the costs for property, buildings, machines, vehicles etc.

How much money do you need in the short and middle-term for setting up the first materials and goods storage, for outstanding accounts and special burdens in the early stages of your business? You should always plan a reserve for the unpredictable and unexpected!

It is also important to know the total amount of operational costs. The required operating resources are often underestimated. Important questions in the early stages of your business include: When will the first reliable income be paid to the business account? How big does the financial buffer need to be to take this into consideration? How expensive is the business foundation itself (certification fees, entries in the land register, provisions for loans)?

You must also ask yourself where you can save money. Used office equipment, devices, systems, and machines cost around a fourth of the price you would pay if you bought them new. Leasing vehicles, machines, and equipment can also significantly relieve the financial burden of starting a new business. Salary and furnishing costs can be saved in the early stages by working at an inexpensive location or commissioning freelancers. If you employ previously unemployed persons, you can count on support from the labour office.

Government subsidies

A basic fact: the more equity capital you have, the better. For only those with enough equity capital, i.e. those willing to risk their own money, will be able to take out loans from credit institutes.

Equity capital

Equity capital Aid program (EKH): The Federal Government offers a special program which helps founders of new businesses in matters of liable equity capital.

Partners: Partners could also provide you with additional equity capital. However they also would want a hand in making decisions.

Equity investment companies: Instead of a partner you could also look for a government subsidized or private equity investment company. The public equity investment companies of the Federal Republic of Germany have been created for the sole purpose of providing young companies with the funds they themselves could not raise from their own savings or partnerships (and which they would not receive from banks because of a lack of security). Shares of equity capital are available from DM 100,000 upward. “Venture Capital” companies, on the other hand, get involved only upwards from seven figures, and they expect much higher returns. Equity capital shares are usually limited to a fixed term, usually 10 years.

Capital from outside sources

Loans from banks: You can obtain credit from your bank at current interest rates. The term of the loan should correspond to the effective life of the investment you want to finance with the loan. Especially in the early phases of a business it is tempting to stretch the redemption of the loan over a long period of time. After all, this improves your solvency. You should, however, take into account that every extension of the redemption period of your loan makes it more expensive.

Suretyship: If you cannot provide sufficient security to receive the required sum from your bank, you should try to obtain a private or public suretyship. The largest amount of a suretyship is usually DM 1.5 million. Of course this involves costs.

Loan from public funds: The Federal Republic and State also offer inexpensive promotion funds for founders of new business and young companies which include grace periods for payback at the start, long terms in general, and interest rates lower than those from banks.

The most important public funds include The ERP equity capital aid program, ERP program for founders of new businesses, Dt program for founders of new businesses, EKE equity capital supplement program, KfW small and medium-sized business program, DtA launching aid.

Note that you must not start investing until you have issued the applications for public loans.

Leasing

You do not necessarily have to purchase all the operating equipment you will need. You can also lease it. Leasing has its advantages if the equipment is needed only for a certain period of time, if it becomes quickly outmoded, if it must first be tested, or if tax reasons come into play (especially for the sustainable revenue potential of your company).

Consultation

Questions about financing and government subsidies can be answered by the following banks:

Sparkasse Stade-Altes Land
Pferdemarkt 11a
21682 Stade
Phone: 0 41 41/490-0
www.sparkasse-stade-altesland.de

Your contact partners at Sparkasse Stade-Altes Land are Uwe Bohmann, phone 0 41 41/490-250, and Petra Muschter, phone 0 41 41/490-255

Other banks in Stade:

Volksbank Stade - Cuxhaven eG
Pferdemarkt 1
21682 Stade
Phone: 0 41 41/939-0
www.vobaeg.de
E-mail: info@vobaeg.de

Kreissparkasse Stade
Große Schmiedestraße 12
21682 Stade
Phone: 0 41 41/109-0
www.ksk-stade.de
E-mail: info@ksk-stade.de

Commerzbank AG
Pferdemarkt 5
21682 Stade
Phone: 04141/ 4093-0
www.commerzbank.de

Deutsche Bank AG
Breite Straße 1
21682 Stade
Phone: 04141/ 9317-0
www.deutsche-bank.deDresdner Bank AG
Große Schmiedestraße 14
21682 Stade
Phone: 04141/ 9275-0
www.dresdner-bank.de

Important information on the Internet

General Information 

The Federal Ministry of the Economy (BMWI) provides essential information on all relevant aspects of founding a business. On the Internet (www.bmwi.de) they also offer viewable and downloadable brochures and every issue of GründerZeiten, which discusses single topics regarding founding a business in depth.

Another source of information is the Internet academy for business founders operated by the Federal Ministry of the Economy and FOCUS online. Not only does the academy clearly and concisely introduce all the important steps and relevant questions of founding a business, but it also provides important information on the topic of networking. In this way, links can be set up which direct one to relevant experts, databases, institutions, etc. for procuring extensive information. (www.focus.de)

Business founders can also find a wealth of information in the virtual business founders’ centre of the Deutschen Ausgleichsbank (DtA). (www.gruenderzentrum.de)

The German National Chamber of Industry and Commerce (DIHK) has set up a series of various exchanges on the Internet. A business founders’ exchange (sale and purchase of businesses) (www.change-online.de); a co-operation exchange (www.kooperationsboerse.ihk.de); an exchange for appraisers (www.svv.ihk.de), and a technology exchange (www.technologieboerse.ihk.de). 

Further information in Lower Saxony can be obtained from the Ministry of the Economy and Traffic (www.niedersachsen.de/MW_wissen.htm) and “NATI”, the Lower Saxony agency for technology transfer and innovation (www.nati.de).

Ideas and concept development

The innovation forum (a joint initiative of the magazine impuls and the Deutsche Bank) has put together an extensive programme for promoting business chances. This forum currently offers around 700 future-oriented developments for which companies, inventors, and research institutes are looking for partners for marketing or manufacture. (www.impulse.de)

The wide range of information in the Genios databases makes it possible to research the competition and market observations. And that in around 500 databases! Genios contains over 750,000 German company profiles and it offers current reports and backgrounds from 120 press sources. (www.genios.de)

There is also information for potential franchisers (a total of 530 addresses) in the franchise net information exchange. (www.franchise-net.de)

Promotional programmes

Only a few promotional programmes come into consideration for a “typical” business founder. There are, however, special programmes for individual cases. In order to help business founders to find the crucial funds for their founding, the Federal Ministry for the Economy (www.bmwi.de) has set up an online promotional database on the Internet. It provides information on the current promotional programs for the commercial economy of the nation, states, and the EU. The relevant websites are linked to the respective programme providers, and they make it possible to access the web servers of the DtA (Deutsche Ausgleichsbank), the KfW (Kreditanstalt für Wiederaufbau), the federal states, and the EU.

Equity interests

The DtA also has an equity interests agency, a service for providing private and institutional equity capital for small and medium-sized companies. (www.dta.de)
German equity interests companies have organised themselves into the BVK (www.bvk-ev.de).

Further education

Kurs Direkt is the world’s largest online database of training and education opportunities. (www.kursdirekt.de) The further education information system WIS provides information on the current professional further education programme. The supporting organizations behind the WIS are the German National Chamber of Industry and Commerce and the Zentralverband des Deutschen Handwerks (ZdH -- German skilled workers’ organization). (infoline.ihk.de/wis)

Patents

The patent offices can also be found on the Internet. At the address of the German patent office or the European patent office you can download all relevant information on existing and available patents as well as forms (e.g. for the protection of trademarks) to your computer. (www.dpma.de) and (www.epo.co.at)
The patent server of the Federal Ministry of Education and Science, Research, and Technology supplies a wealth of information on the topic of patents: registration, costs, funds, patent lawyers, existing patents, etc. (www.patente.bmbf.de)

Legal aspects

The German Law forum provides a wealth of information on tax, labour, and insolvency laws for the clarification of legal questions.Note: These sources of information are not meant to replace a well-founded legal consultation. They can, however, prepare business founders for general and special problems in founding a company. (www.recht.de)

Business successors

Many businesses are looking for successors, but they are having difficulties finding suitable ones. You can find numerous wanted / offer notices at www.change-online.de.

Using the Internet

At the online academy "akademie.de", which is funded by the Federal Ministry of Labour and Social Affairs and the European Commission, Directorate-General V, one can learn to use the Internet effectively and cost-effectively for business purposes at the workplace. Topics: Web profile, research on the Internet, etc. The courses and services are free of charge for employees of small to medium-sized companies. (www.akademie.de)

Note: The information has for the most part been compiled and commented on by the Federal Ministry of the Economy. If you discover more current or better offers than those named here, please notify the Agency for the Promotion of Economic Development.

Special information for women

Women who have questions about their careers or who want to become self-employed can turn to the representative of Women’s Affairs of the City of Stade, Karina Holst, for advice. Her telephone number is 0 41 41/401-103.

Valuable tips - not only for women - can be found in Lilaband, which can be purchased for DM 5,- from the representative for Women’s Affairs.

The co-ordinating office of career and business promotion for women at the Lüneberg-Stade Chamber of Crafts provides consultation especially for women in skilled labour professions. The director, Mrs. Christina Völkers, can be reached by telephone (0 41 41/60 62-28) or e-mail (voelkers@hwk-lueneburg-stade.de).

Special brochures for women who want to found a business can be requested there or at the Agency for the Promotion of Economic Development. There is also information available on a special loan programme for women who want to become self-employed in Lower Saxony.

The business founders group “Gute Aussichten” (“Good Prospects”) has been meeting in the administrative district of Stade for some time. If you would like more information about the group, just contact Karina Holst.