“Zebra” and “Camel” instead of “Unicorn”? – If your startup is already generating revenue and “healthy” growth is feasible, bank financing could be helpful. Banks typically grant loans against collateral and based on repayment probability. Loans from development banks usually offer discounted interest rates and indemnities.
In this tutorial, Peter Leitenmayer from LfA Förderbank Bayern shares insights and tips on debt financing for these kinds of startups:
- What is the difference between scaling ambitions? – Hyperscale vs. Seedstrapping
- What does a typical financing mix look like?
- What can be financed through loans – and what cannot?
- What advantages do standard or subsidized loans offer?
- What role does your primary bank play and who should you talk to first?
- How should the “case” be prepared for bank financing?
- How important is loan collateral?
- What are the benefits of risk minimization via guarantees or indemnities?
- Which promotional/development loans are eligible?
