Combination of a preferential loan with a subsidy available for entrepreneurs

New methods of financing are offered to entrepreneurs of all sizes. The instruments can take the form of an interest-free loan or loan guarantee, and often offer the possibility of receiving a subsidy. If you need financing for a project where you expect to repay the support received, programs offering discounted financing can be a great option for you. In this article, we offer examples of currently available funding and outline the basic mechanism of how they work.

What kind of support is currently available for entrepreneurs?

For example, current programs provide preferential loans to businesses for investments in energy savings. They also provide guarantees for the purchase of electric cars, which will help beneficiaries obtain loans from banks more easily or on better terms. Entrepreneurs can get as well an interest-free loan for the purchase of new photovoltaic power plants and in addition, if all loan conditions are met, the applicant can receive a financial contribution (subsidy) that does not have to be repaid.

What advantages does the program offer compared to “pure” grant schemes?

The programs have their own specific criteria, but certain principles are common:

The programs are available to a wide range of fields and entrepreneurs.

In contrast to subsidies, support from the programs is available continuously and there is no need to wait for the so called Calls. You can get financing exactly at the moment you need it.

The process of requesting support is quick, usually within a few weeks, and administratively undemanding.

Do we recommend using preferential financing?

If it is economically and commercially beneficial for you to use external financing for your project, then yes. Financial instruments offer more favorable than market conditions. With available funding, you can accelerate your business. Go for it!