BBS BoB – Guarantee without a Bank

Target group

• Start-ups and existing companies investing in Saxony

Use of credit

• Guarantee for loans to finance:
  • Machinery, systems/equipment and owner-occupied commercial properties
  • Corporate succession and active participation
  • Inventories, working capital and guarantees

Requirements

• Promising, workable business concept
• Professional/business qualifications of entrepreneur
• Insufficient or no collateral

Amount of guarantee

• Up to 80% or €500,000

Term of guarantee

• Up to 15 years
• Up to 23 years for promotional loans/construction projects
• Up to 8 years for working capital

Terms and conditions

• One-time administration fee:
  • € 150 plus VAT payable on application
  • Upon approval, 1.5% of guaranteed loan amount plus VAT minus administrative fee already paid

• Annual commission on guarantees:
  • 1.0% of guaranteed loan/present value of loan plus VAT

Collateral

• Where collateral available, best possible collateralisation
• Partial guarantee/joint liability of partners
• Term life insurance

Application submitted

• Directly to BBS

Following approval

• the entrepreneur receives our offer of guarantee
• he/she selects a principal bank
• the principal bank presents undertaking to finance