Loans are a typical instrument for supporting investments. The advantages of promotional loans are
primarily the favorable interest rates, long terms, often also including a grace period prior to
commencing with the repayment of the loan or a partial indemnity of the house bank.
Depending on the program, investments or even operating costs can be supported.

Subordinated Loans
No securities are needed when applying for subordinated loans. During a bankruptcy procedure, these
lenders will actually be satisfied subordinately, i.e. only after the claims of all other creditors have
been satisfied.
Subordinated loans are a mix of equity and borrowed capital (mezzanine capital).

Guarantees can help secure a loan if standard banking collateral is not available or not to the extent required. This is often a letter of indemnity. With this special type of guarantee for a company, the underwriter has to only vouch for the final default, i.e. for that which the creditor cannot access despite the debtor’s foreclosure and the liquidation of the collateral.

It is recommended that a detailed business plan is prepared and/or an existing business plan revised so that beneficial talks can be held as soon as possible.

It’s also possible to apply for a Guarantee without a Bank (BoB) at the Saxon guarantee bank Bürgschaftsbank Sachsen. Once your application is accepted, it stays effective for twelve weeks. During this time, you can look for a principal bank to finance your project.