How Can the ERP Start-Up and Succession Loan (077) Optimally Finance Your Business Acquisition?

Are you looking to take over an established company instead of starting from scratch? The ERP Start-up and Succession Loan (077) from KfW offers a tailored financing solution for this purpose. With attractive terms, a 100% guarantee, and a straightforward application process, this funding program specifically supports business successors.

Who is the ERP Start-up and Succession Loan (077) designed for?

The ERP Start-up and Succession Loan is specifically aimed at individuals who want to take the step into entrepreneurial self-employment. The program is available to start-ups, including freelancers.

It is particularly attractive for business successors who want to take over an existing company. Young entrepreneurs whose business has been on the market for less than five years can also benefit from this funding.

Eligible applicants are those who are or will become part of the management team in connection with the takeover or start-up. This makes the program ideal for anyone who wants not only to purchase a company but also to actively manage it.

What costs does the funding cover in a business acquisition?

With the ERP Start-up and Succession Loan, you can finance various costs incurred during a business takeover. The purchase price of the company is the primary focus of the funding.

In addition to the actual purchase price, you can finance necessary investments in machinery, equipment, and fixtures. This option is especially valuable if you plan to modernize the acquired company.

Working capital to secure liquidity after the takeover is also eligible for funding. Other start-up costs related to the acquisition can likewise be covered by the loan.

How attractive are the terms and what collateral do you need?

The loan terms of the ERP Start-up and Succession Loan are flexible, providing you with long-term planning security. You can find the exact interest rates in the current KfW conditions overview.

Prepayments, whether full or partial, are possible with the payment of a prepayment penalty. This gives you additional flexibility in repayment.

As a borrower, you are personally liable for the loan; however, a key advantage is that a guarantee bank assumes a 100% guarantee. No further collateral is required.

This arrangement is especially beneficial for business successors who often do not have extensive personal collateral. Your private assets are not burdened by additional security requirements.

How does the application process for the ERP Start-up and Succession Loan work?

The path to the ERP Start-up and Succession Loan begins with careful planning of your project. Prepare a detailed business plan and gather all necessary documents for the application.

Next, find a suitable financing partner, usually your primary bank. Be sure to apply for the loan before starting your takeover project, as retroactive applications are not possible.

After submitting your application, a risk assessment is conducted by the guarantee bank. If the result is positive, KfW reviews your eligibility and issues approval if all requirements are met.

Once approved by KfW, you can finalize the loan agreement and draw down the required loan amount. This clears the way for financing your business acquisition.

Why is the ERP Start-up and Succession Loan particularly attractive for business successors?

For individuals purchasing a company rather than founding a new one, the ERP Start-up and Succession Loan offers decisive advantages. It enables financing of the entire purchase price, providing a comprehensive solution for the takeover.

A standout benefit is that no additional collateral beyond the guarantee is required. This significantly eases access to financing, especially if you do not have extensive personal collateral.

Although you are personally liable for the loan, your private assets are not encumbered by further security demands. The quick and structured application process also ensures prompt implementation of your takeover project.

The attractive terms and long repayment period provide financial leeway during the critical initial phase after the takeover. This allows you to focus on successfully developing the acquired company.

How does this loan differ from the ERP Start-up Loan - Start-up Capital?

Compared to the ERP Start-up Loan - Start-up Capital (067), the ERP Start-up and Succession Loan (077) offers higher financing amounts. While the Start-up Capital is limited to €125,000, you can apply for up to €500,000 with the Succession Loan.

The ERP Start-up and Succession Loan is characterized by a 100% guarantee assumption by the guarantee bank. For the Start-up Capital, the liability release is 80%, which poses a slightly higher risk for the primary bank.

There are also differences in the financing share: the Start-up Capital can cover up to 100% of eligible costs, whereas the Succession Loan finances a maximum of 35% of a takeover project. This makes it particularly interesting for larger projects in combination with other financing sources.

The choice between the two programs should be based on your individual financing needs and the size of the company to be acquired. Professional advice can help you find the optimal solution for your situation.

How can you maximize your chances of successful funding?

To increase your chances of successful funding, submit a convincing business plan. Show not only the current situation of the company to be acquired but also your vision for the future and realistic financial projections.

Carefully prepare all required documents, including the financial statements of the company to be acquired and current business evaluations. Thorough preparation is key to success in the application process.

Take advantage of advisory services from KfW and the guarantee banks to optimally prepare your application. Professional support can make the difference between rejection and approval.

Insist with your primary bank on using this funding program, as it offers significant advantages for business successors. Not all bank advisors are familiar with the details of every funding program, so your own knowledge is important.

Conclusion: Your path to owning a business with government support

The ERP Start-up and Succession Loan (077) is a tailored financing instrument for anyone who wants to take the step into entrepreneurial self-employment through a business acquisition. You benefit from attractive terms, comprehensive guarantees, and a structured application process.

Especially the combination of a high funding amount and low collateral requirements makes this program the ideal partner for your business purchase. The long repayment terms also provide financial planning security during the crucial initial phase.

Take the opportunity to become an entrepreneur with government support—not through a complete new start, but by taking over an established business with future potential. The ERP Start-up and Succession Loan can be the key to your successful start as a business owner.

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