Many start-ups start with a small business. There can be many reasons for this. The main reasons, however, are that the small business owner only runs the business as a sideline or that the small business does not generate sales of more than $ 17,500 in the first year and no more than $ 50,000 a year after that. For the small business owner, this makes the annual income tax return much easier, since he only has to keep an income and expenditure account and not do any bookkeeping.
Small Business Loan
But even a small business wants to be financed initially, even if the expenses for it are not as high as for the establishment of a large company. The Kreditanstalt für Wiederaufbau, Best Bank for short, is especially for start-ups. This bank also grants a loan to the small business if the house bank has approved it. The contact to Best Bank is only established through the house bank. The entrepreneur must have worked out a very good business plan. If you go unprepared to your house bank to apply for a loan for the small business, you can expect a rejection.
The bank advisor first checks the submitted documents. If he thinks the project is profitable, he passes it on to Best Bank-Bank. It is not possible to contact the bank without advice from the house bank. The Reconstruction Loan is known for its low interest rates. Start-ups in particular benefit from this because they don’t have as much income anyway. However, there should be no debt, because Best Bank also checks Credit Bureau.
Credit from private
If Best Bank does not take out a loan, there is still an inquiry on the portals where private individuals lend money to others. These are Smava and Auxmoney. Potential customers are also accepted here if the Credit Bureau information is no longer quite as positive. The self-employed are particularly welcome here, which also applies to start-ups.
With other banks, it will be difficult to obtain a loan, because especially the self-employed usually have to expect rejection due to their uncertain future. Only those who successfully manage a company can expect a promise. However, this is problematic for a small business because it is clear from the start that sales will not be high and the banks will have a hard time doing this.