Funding for every project

Start-ups, growth, succession – the public sector offers financial assistance for every phase of a business. This makes necessary investments easier to manage.

This article is part of the special feature GründerNavi – for founders and young companies

For Alexander Stamos, it was a no-brainer: "When we install fuel cells and photovoltaic systems for customers, I can't show up in an old diesel," said the 47-year-old founder and owner of Stamos GmbH from Grevenbroich. However, the purchase of two new zero-emission electric vans required an investment of €100.000.

The trained gas and water installer as well as heating and ventilation engineer contacted NRW.BANK and quickly put together his financing mix: "12.000 euros came as a grant, the rest we financed through the low-interest loan from the NRW.BANK.Electromobility program ." Today, the employees of the 20-person company drive emission-free to their customers – and overnight the two vans charge with clean electricity from the company's own fuel cell.

Almost 30.000 consultations in 2019

Eckhard Forst, CEO of NRW.BANK. No good idea should fail due to financing in North Rhine-Westphalia. Photo: © Christian Lord Otto

"No good idea should fail due to lack of financing in North Rhine-Westphalia," says Eckhard Forst, CEO of NRW.BANK. As the state's development bank , NRW.BANK offers a comprehensive program ranging from low-interest loans and equity financing to consulting services. In the 2019 fiscal year, the bank committed almost €10,3 billion in new funding, the same volume as the previous year, and conducted nearly 30.000 consultations.

While innovation and digitalization were the main topics of interest in 2019, the current economic landscape is dominated by the coronavirus pandemic . Since the beginning of the crisis, NRW.BANK has provided more than €1 billion in loans to affected startups and SMEs in North Rhine-Westphalia. It also offers comprehensive advice on current federal and state funding programs and has adapted its own services in response to the crisis. Repayment holidays are now available, and the NRW.BANK Universal Loan is offered with an 80% liability waiver.

You might also be interested in:

Operations management

Plumbing, heating and air conditioning (SHK) industry on the reduction of heating subsidies

The Chambers of Skilled Crafts in Germany - HWK Trier

Overview of scholarships for trainees

Operations management

Barrier-free and age-appropriate renovation: Application freeze

The goal is to find the right financing mix for each project. The actual application for funding is then submitted through the company's primary bank, whether it's a cooperative bank, savings bank, or private bank. NRW.BANK collaborates with all credit institutions , which then disburse the funds. Especially for larger projects, the company head should always contact their corporate banking advisor at their primary bank and inquire about available funding opportunities.

Checklist: The path to funding

There's an important principle when it comes to funding: apply for the funding first, then invest. This is because there's usually no money available for projects that are already underway.

• The funding application, approval and disbursement of funds are handled through the bank.
• The business concept must provide all important facts: information on planned products and services, market potential, market volume and geographical sales markets, competitors, estimated own market shares, sales channels, company size, number of jobs and training positions, production, storage, exhibition and/or retail space, but also a financing plan with profitability and liquidity planning. 
• All investments necessary for the establishment and growth of a company are eligible for funding, such as land, buildings, machinery and equipment or company vehicles, but also all ongoing operating costs such as rent, advertising expenses, in-house research or personnel costs.
• Public funding is primarily provided in the form of low-interest loans with long terms, including grace periods. They range from €5.000 in microcredit loans to larger financing arrangements, typically up to €10 million.

Source: NRW.BANK's 2019 start-up brochure "From the idea to funding!"

CONCLUSIONThe beginnings: A development bank provides financial start-up support for good ideas.
growth: As the company grows, liquidity bottlenecks must not arise. Funding helps.
Signpost: Clarify funding options with your bank.
House bank: Apply for the funding with your bank. Your bank will submit the funding application to NRW.BANK.