fpmi members support small and medium-sized companies

by Finanzplatz München Initiative

Small and mid-sized enterprises employ approximately 75% of all workers and over 80% of apprentices in Bavaria. In addition, they are responsible for about 65% of the value added by Bavarian companies. Yet in times of increasing competition many small and medium-sized businesses have problems with the supply of equity and borrowed capital.
“Improving financing for small and medium-sized companies remains a central economic policy issue for us,” stresses Bavarian State Minister of Economic Affairs Otto Wiesheu. The Bavarian state government has developed a four-pronged approach: improving the tax framework, conditions for participant and loan financing, and enhancing the overall economic environment.
Optimizing financing for small and mid-sized enterprises is also a central goal of the Munich Financial Center Initiative. Among other things, it wants to help set up financing processes for this target group, and also initiate the development of new financing models.

The members of fpmi are already providing comprehensive offers in all areas of small and medium-sized enterprise financing. These include early stage financing with venture capital, as well as strengthening growth phases with equity capital and assistance measures. Strong consulting services help improve SMEs know-how in various financial areas.

Here’s what the following fpmi members offer you in terms of SME financing:

Allianz Group: Insurance and financial services

Allianz Group has comprehensive experience handling all of the insurance and financial requirements of small and medium-sized companies. Among these, for instance, are company pension plans and the establishment of individualized insurance concepts to minimize the risks of the company, its employees and the entrepreneurs themselves. Allianz Group also provides, of course, traditional financing concepts, as well as management of money- and payment transactions.
Further information on Allianz
Further information on Dresdner Bank

Baader Wertpapierhandelsbank: Capital market consulting

Baader Wertpapierhandelsbank is able to answer all questions small and medium-sized enterprises have about the capital market. These include IPOs, recapitalizations, and the issuance of convertible loan stocks and participation certificates. In the last several years the institute has handled over 150 transactions.
Further information

Bavarian Bankers Association: Special focus on SME financing

Financing for small and medium-sized companies is a special concern of all private banks in Bavaria. With Bavarian individual bankers, SMEs have partners who speak their language.

BayernLB: Innovative financing and traditional banking products

BayernLB offers a wide variety of comprehensive lifecycle products for Bavarian companies. The newest offering in the Corporate Finance product family, BayernLB’s mezzanine program, strengthens a company’s equity capital. The financing of corporate buying and selling, as well as growth and balance sheet improvements, starts at .75 million euros and goes up to 10 million euros.
Further information

Savings banks: Market leaders in the credit industry

The Bavarian savings banks are credit industry market leaders with trade and repair businesses as well as small and mid-sized companies. By supplementing traditional credit financing, the Bavarian savings banks further the goal of creating innovative types of financing suitable for small and medium-sized enterprises. This enables individual savings banks to integrate enhanced product palettes and thus expand the financing options of small and medium-sized enterprises. The savings banks have focused in particular on supporting equity capital requirements via mezzanine capital. In addition to “silent partners,” the BayernLB mezzanine program is offered.

Munich Stock Exchange: M:access – Perspectives for small and mid-sized companies

Small and medium-sized businesses are one of the fundamental pillars of the German economy. Prerequisite for investments and growth, however, is equity capital. The Munich Stock Exchange’s new stock market segment – M:access – helps SMEs gain entry to public capital markets. M:access is conceived as a segment-comprehensive, exchange-regulated market. Entry can take place with an IPO, additional listing or by changing from another market segment. For more information on the rules and regulations, new-issue experts and listed companies, go to:
Further information

Cooperative banks: Strong in the development credit business

The Bavarian Volksbanken and Raiffeisenbank make their expertise easily available with over 3,000 local branches. With individual and attractive financing options, they provide support especially to small and medium-sized enterprises. They are particularly engaged in the development credit business. In 2004, 53 percent of all LfA Förderbank Bayern’s development credit was brokered by cooperative banks.

The Free State of Bavaria: SME credit program and support via LfA

The Free State of Bavaria supports small and medium-sized enterprises in particular with the Bavarian SME credit program. From 2000 to 2004 alone, an investment volume of almost 3.6 billion euros was sponsored by this program. In order to make government-sponsored credit available to businesses with weak credit ratings, LfA Foerderbank Bayern introduced on April 1, 2005 risk-differentiated interest for SMEs.
Further information

LfA Foerderbank Bayern: Low interest loans and underwriting

LfA Foerderbank Bayern is the credit institution of the Free State of Bavaria charged with economic policy responsibilities. The offer for businesses includes low interest loans and underwriting in the form of guaranties, indemnity contracts and warranties, which are brokered for the LfA by a bank or savings bank. The focus is on five main areas of business: formation, growth, environmental protection, innovation and consolidation.
Further information

Chamber of Trade for Munich and Upper Bavaria: Comprehensive consulting

The business consultants of the Chamber of Trade for Munich and Upper Bavaria advise members and entrepreneurs in a comprehensive and unbiased way about all aspects of entrepreneurial financing. One focus provides consulting regarding government-sponsored loans, guarantees and grants; the consultants also provide assistance with the application for credit and the preparation of the relevant documents. Credit applicants are provided with intensive preparations for their negotiations with the banks. Consultants will even accompany borrowers to these meetings, if desired.
Further information

HVB Group: Innovative with PREPS

Small and medium-sized enterprises are one of HypoVereinsbank’s key target groups. HVB combines closeness to customers with the competence of a corporation. It aspires to help customers step-by-step with their investment decisions. This goes among other things for the selection of products that HVB has specially developed for small and medium-sized companies–PREPS (Preferred Pooled Shares). They serve as a bridge function between borrowed and equity capital for companies looking to expand into growth regions such as Central and Eastern Europe. HVB awarded the “MOE Award” for the most innovative medium-sized company in this region, and for the exchange of experience via the “SME Expert Forum.”

ibi research: Analysis of payment processes

ibi research examines how the international competitiveness of German small and medium-sized businesses can be strengthened by supporting SMEs in the design of payment processes. One of the biggest risks for SMEs that result from the growing use of international electronic trade relations is non-payment by foreign debtors. In order to limit this risk, the entire export finance chain via electronic marketing channels must be supported by appropriate financial services.
Further information

Chambers of Commerce: Informational materials and individual service

The Chambers of Commerce offer informational materials and individual service on small and medium-sized company financing. Key areas of focus are providing information about credit negotiations and alternative financing options such as leasing, factoring or equity capital. With its “Bavarian Round Table” consulting project, the Chambers of Commerce provide experienced experts to assist companies with their financing problems – and the initial analysis is free. The experts develop measures to improve operating procedures and financing structures. Financing discussions and consulting via the “Bavarian Round Table” are possible in Munich.
Further information

3i: Growth capital and company shares

In the growth capital field, 3i not only makes growth capital available to small and medium-sized businesses, but also frequently acquires shares from shareholders, and may combine both. In every situation 3i is engaged as a partner in the business as a minority stakeholder and supports growth strategies through significant industry know-how and an international network. Normally 3i invest its own capital in the amount of 10 million euros to 150 million euros and frequently makes additional bank financing possible.

The Bavarian Economic Union: Setting a framework for policy planning

The SME board of the Bavarian Economic Union (vbw) is above all concerned with correcting the current framework for policy planning, which essentially causes the equity capital deficiencies of German small and medium-sized enterprises. Beyond development financing, important issues for improving the financing situation of SMEs are: providing inheritance tax relief for family businesses, releasing SMEs from the burdensome costs caused by statutory bureaucratic requirements or also – as a future topic – the development of simplified balance- and tax balance sheet policies. The vbw has recently provided a list of tax and financial threshold values, which can be obstacles to growth for SMEs.
Further information

Chamber of Public Accountants: Audited figures

Many companies that are not subject to legally mandated auditing of their annual financial statements have their accounts voluntarily audited by public accountants. An audited balance sheet and annual statements of account serve several purposes: increased security and control, appraisal of the business and in particular enable presentation to outside parties, for example: credit institutions. Audited balance sheets are frequently instrumental in any type of financing. Public accountants also serve in a sense as management consultants. Part of their mandate is to consider and resolve commercial, financial, organizational and business law issues. The Chamber of Public Accountants offers offline and online support when searching for public accountants.
Further information

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