The right funding for every project

Implementing new ideas or changing business models requires courage and usually costs money. Such projects can be financed with grants.

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

Anyone starting a business needs courage first and foremost. Moritz Blees , Matthias Köppe , and Adrian Roepe can certainly attest to that. Inspired by a trip through Latin America, they decided to found a company for wooden sunglasses . The men financed the first models with their savings – and their brand, Kerbholz, was an instant success. But although the start-up took off immediately, the revenue wasn't enough to pre-finance the next production run. They needed a solid and sustainable financial foundation.

The founders sought support from NRW.BANK . The development bank for North Rhine-Westphalia offers a wide range of funding opportunities for startups and small and medium-sized enterprises (SMEs). These range from low-interest loans and equity financing to consulting services. Kerbholz, for example, utilized the NRW.BANK.Innovative Companies funding program, laying the foundation for further growth. The Cologne-based startup now also produces wristwatches and other wooden accessories.

A central component of NRW.BANK's funding offerings are its various subsidized loans. Compared to other loans, subsidized loans offer many advantages: favorable interest rates and long fixed-interest periods, long terms, and grace periods. A subsidized loan can also increase financial flexibility if the recipient uses a guarantee or liability indemnity.

Digitalization and innovation

NRW.BANK achieved a strong funding result in 2018. It committed a total of €10,3 billion in new financing. Demand for future-oriented topics such as digitalization and innovation was particularly strong. In addition, NRW.BANK conducted 28.000 funding consultations across all target groups last year. "We are ensuring that the available opportunities become even more widely known – independently of our own programs," says Eckhard Forst, Chairman of the Board of Management of NRW.BANK.

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Entrepreneurs apply for funding through their main bank, which also disburses it. It doesn't matter whether the business is with a cooperative bank, a savings bank, or a private bank – NRW.BANK works with all financial institutions.

TIP: For larger projects, the boss should always contact the corporate client advisor at his bank – and always ask about funding opportunities.

Checklist: How founders get funding

• An important principle applies to funding: Apply for funding first, then invest. Those who have already invested or entered into financial commitments usually come away empty-handed.
• Inform early: There are suitable funding opportunities for almost every project. Therefore, it's important to find out as early as possible so you can submit your application at the right time.
• The house bank is responsible: Most public funding programs can be applied for at your bank, i.e., the bank or savings bank that holds your account. They also approve and disburse the funds.
• The concept must be convincing: The business concept and the founder's personality must convince the bank advisor, who will then forward the funding application to the development bank. Therefore, founders must be well prepared for such an interview.
• For the business concept, founders must prepare important information: This includes 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 shop space.

Source: NRW.BANK 2018 Founders' Brochure " From Idea to Funding! "