Franchising: The key to your business start-up funding

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One of the most important factors in business start-up is the financing of your project. Establishing planning is therefore essential accurately determine the short-and long-term capital needs. This is covered by equity and debt. The more equity, the better, as you can see on, because it reduces the risk of liquidity problems that can occur even with relatively small deviations from the plan data (e.g. by pre-financing like orders, lower sales, etc.). Only those with sufficient equity can react quickly and flexibly to new financing needs (for example, investment in market change). You can apply for up to two years after the opening of a business.


Equity capital and expertise capital can flow into the company through business partners. Moreover, such partners contribute often also additional expertise and active support to the company. Private Capital provides a good credit rating and borrowing.In addition, the proportion of own funds to the banks serves as an important criterion to assess credit ratings in the rating process, the higher the credit rating is, the lower the interest rates charged for loans. Venture capitalists instead of a partner can be a private or publicly funded private equity firm, a so-called medium-sized private equity firm. As a rule, investment companies offer special programs for entrepreneurs with reduced terms to start from 20,000 euros.

Investment companies are working mostly in the form of equity capital on favourable terms, without participating in the management of the company. Besides that, they do not require participation in the increase in shareholder value.

In the for-profit private equity firm’s individual credit terms, participation is possible on appreciation and participation rules more prominent. Venture capital come if the business concept is risky, but there is also above average opportunities, including so-called “venture capital” companies the considered. Usually are used much higher amounts (from € 500,000) and is expect higher yields. Their advantage lies in their high finance expertise and financial strength.