How is the job in corporate finance

Corporate finance

Equity is an essential requirement for long-term business activities. The higher a company's equity ratio, the lower the risk of over-indebtedness and insolvency. At the same time, banks and savings banks rate the creditworthiness higher. The equity ratio of many small and medium-sized enterprises (SMEs) in Brandenburg is low. For this reason, the state offers programs that directly increase equity or are to be assessed as equity-like.

The Ministry for Economic Affairs and Energy, together with the Investment Bank of the State of Brandenburg, awards the Early phase and growth fund (BFB III). The funding in favor of small, innovatively oriented companies (KU) in the early phase takes place as an open participation. This is combined with a subordinated loan and depends on the capital requirements as well as the liquidity and balance sheet situation of a company.

Early stage and growth funds

The early phase and growth fund also offers open investments and similar investments for the growth of SMEs in different phases of product development. This can support investments in property, plant and equipment and intangible assets as well as in operating resources. The same applies to the acquisition of company shares.

Brandenburg loan mezzanine II

With the Brandenburg Loan Mezzanine II (BK MEZZ II), the Ministry for Economic Affairs and Energy offers subordinated loans to small and medium-sized companies. These are intended to strengthen the equity base and improve the creditworthiness of companies. In this way, the companies can acquire company shares. They also have the option to finance investments in property, plant and equipment and intangible assets, as well as working capital.

Brandenburg microcredit

In addition, the Ministry for Economic Affairs and Energy offers the Brandenburg microcredit. This granted Microloans up to 25,000 euros. This means that start-up projects, existing companies or even freelancers can receive loans for up to ten years after they were founded. These are used to make investments, to pre-finance orders or to cover running costs. The current interest rate is 1.77%.

The programs listed here are financed with the help of the European Regional Development Fund (ERDF) and co-financed by the Investment Bank of the State of Brandenburg and the State of Brandenburg itself.

Consolidation and location security (KoSta)

Company in trouble can apply for rescue aid and restructuring loans from the ILB as part of the Consolidation and Location Protection (KoSta) program. The purpose of the loans is to ensure that business operations can be maintained by partially financing the liquidity requirements. In particular, they are intended to give companies the necessary time to examine their economic situation in detail and to work out an appropriate plan to overcome the economic problems. The program is aimed exclusively at small and medium-sized companies that find themselves in difficulties that threaten their existence.