Self-employment loan without equity
It becomes particularly difficult when there is no starting capital. But even without equity, it is possible to start your own business. For more information about self-employed loans, see our Self-employed Loans article. Even without equity, you can have the start money approved – at least theoretically. For most self-employed care models, there is no direct lending from the care agency to the entrepreneur. You have already experienced finding the right loan for the self-employed.
From zero to entrepreneur – reasons without equity
The idea is there, but the necessary small change is missing: The corporate financing causes sloppy sleep for many company founders. But even without equity, it is possible to build your own business. Depending on the business idea and capital requirements, there are a variety of financing options. At this point we would like to introduce you to how company founders pay for their (future) business.
This is undoubtedly a loan from the National Bank. He receives a certain amount, which he can later repay in installments – of course with interest. For start-ups, there are special loans, for example, awarded by the Intrasavings through various credit institutions.
For a start-up loan, the whole thing is a convincing business concept. In addition, a loan often requires collateral, for example in the form of land or guarantees. Decision making for or against a loan can take months, and often the loan application is ultimately rejected. The loan amount is limited.
The bureaucracy for microcredit is relatively low. Less security and proof are required, but interest rates are usually higher than conventional bonds. In the first few months of life, the Employment Agency provides financial support if the company is created out of unemployment. This must always be agreed in individual cases; the choice for or against start-up funding is the responsibility of the Employment Agency. Second
When claiming the unemployment benefit I, this amounts to 300 per month for the first 6 months of life with the possibility of a lower additional payment. In the case of receiving unemployment benefit 2, there is also the chance of a monthly allowance in individual amounts. At the heart of the company’s idea of fostering innovation, the government’s incentive program provides a mix of advice and grants.
Depending on the last one, it may be a non-refundable asset or a special-purpose loan. Prerequisites for all study programs are compliance with the relevant requirements and a successful application. Further information can be obtained, for example, from the websites of the Federal Ministry of Research, the Federal Ministry of Economics and the Investment Bank of Berlin.
The company also offers you a state scholarship for students or scientists who want to become self-employed immediately after their studies. For start-ups, the most common form of investment is the so-called angel financing, in which an investor maintains capital and know-how. But how do you find someone who contributes to your own business idea outside of TV shows like “The Lion’s Den”?
There are now various online platforms that bring together benefactors and investors, such as funds.
For this to succeed, a meaningful business plan as in the application for a bank loan must be set up. Starting a business with a partner is often an interesting alternative to single-purchase, not infrequently when the partner contributes the existing equity capital.
In addition, a variety of platforms offers the possibilities of networking, such as the Founderio page. The crowdfunding as start-up financing has been in increasing demand in recent years. The principle is simple: Private people donate money without demanding anything that they consider eligible. Incentives, such as handwritten postcards or a copy from the first edition, are another incentive for the “donation”.
For the promotion, there is the all-or-nothing principle: The target amount of subsidy must be achieved in full, otherwise the individual amounts go back to the donors, and the project gets nothing. The crowdfunding is not suitable for all performances. The best known platform for crowdfunding is the platform for the German-speaking countries and the platform for the international project work of Kickstartern.
If debt financing is not possible or desired, there is still the opportunity to initially maintain the previous job and to become self-employed. Before you start a business as a sideline, you should estimate how much time the business idea will actually take and whether it is really feasible in your free time.
Further information and tips for part-time or micro-foundations can be found on the BME website. It is also possible to start your own business without equity. There are always ways and means in which not every possibility of financing is suitable for every situation and every idea. It gives an insight into the business idea for the external positions, but also for the donors themselves.
Have fun realizing your own idea, with or without equity!