What is a business loan (Firmenkredit)?
A Firmenkredit (also called a company loan, business loan or working-capital loan, Betriebsmittelkredit) is purpose-bound or free-use financing specifically for commercial borrowers. Unlike private loans, this form of credit is aimed at companies of every size – from sole traders and freelancers to start-ups and established mid-sized firms (Mittelstand).
German banks have lent well over a trillion euros to domestic companies and self-employed people (outstanding loans, source: Deutsche Bundesbank). The need for flexible financing solutions has grown especially among small and medium-sized enterprises (SMEs), because traditional house banks (Hausbanken) often have lengthy approval processes and high requirements.
Typical uses of business loans
- Working capital: financing the purchase of goods, raw materials or running costs to bridge liquidity gaps
- Investment: buying machinery, vehicles, IT equipment or fittings
- Expansion: opening new locations, entering new markets or hiring staff
- Debt refinancing: replacing existing loans with better terms
- Bridging: short-term financing during order fluctuations or seasonal gaps
Types of business loans at a glance
Depending on your financing need and the company's situation, various forms of credit are available:
Investment loan
Purpose-bound financing for fixed assets with a longer term (3–10 years). Often cheaper interest because the financed asset serves as collateral.
Working-capital loan
Flexible loan for running costs, purchasing goods or liquidity. Short to medium terms (6–60 months), often as a credit line.
Current-account credit
Overdraft facility on the business account (Kontokorrentkredit). Flexible use, but higher interest (8–15% p.a.). Ideal for short-term gaps.
Online express loan
Digital business loans from fintech providers. Quick decision (24–48 h), fully online, but sometimes higher interest than traditional banks.
Business loan providers 2026 in detail
We compared well-known providers and brokers of business loans in Germany based on their publicly available information: loan amounts, terms, interest figures, requirements and processing time (as of October 2026). The order is not a ranking.
1. FinCompare – broker with up to 5 offers
FinCompare is an independent comparison portal for business financing based in Berlin. As a broker, FinCompare works with more than 100 financing partners and presents up to five offers after a free enquiry. Besides business loans, FinCompare also arranges leasing, factoring, purchase and real-estate financing.
- Financing volume: from €10,000
- Interest: no published range – depends on the financier
- Requirement: usually at least 2 years of business history
- Response: within 48 hours
- Special feature: up to 5 individual offers from different financiers
2. teylor – digital working-capital loan for mid-sized firms
teylor is a Swiss fintech company that arranges, or grants together with partner banks, unsecured fixed-rate working-capital loans to SMEs in Germany. The application is fully digital; usually the latest annual accounts and a current BWA (management accounts, Betriebswirtschaftliche Auswertung) are required.
- Loan amount: €50,000 – €1,500,000 and more
- Interest: fixed rate, depending on credit standing (no published range)
- Term: 12–60 months
- Payout: usually within 48 hours
- Requirement: registered office in Germany, at least €50,000 annual turnover
- Special feature: no collateral required, 100% digital process
3. COMPEON – financing portal with around 300 partners
COMPEON, based in Düsseldorf, is one of the largest financing portals for mid-sized firms in Germany. Through the portal, companies reach around 300 financial partners (banks, savings banks, specialist financiers). The "Digital Quick Loan" offers unsecured loans of up to €750,000 with terms in real time; creditworthiness is checked automatically via Creditreform.
- Loan amount: €10,000 – €10,000,000
- Interest: unsecured loans from 5.19% p.a.
- Term: 6–120 months
- Financing commitment: partly possible on the same day
- Special feature: also leasing, factoring, mezzanine capital and grant advice
4. Invesdor – crowdinvesting as an alternative
Invesdor is a platform for corporate financing through crowdinvesting. Founded in Helsinki in 2012, Invesdor merged with the Berlin platform Kapilendo in 2022 to form the Invesdor Group. Companies issue bonds or shares to private and institutional investors through the platform. The interest rate is set for each issue; platform fees come on top. Particularly suitable for established, fast-growing companies with a convincing story.
- Loan amount: €25,000 – €2,500,000
- Interest paid to investors: current issues e.g. 7.25% – 9.20% p.a. (plus platform fees)
- Term: per issue, e.g. 1.5–7 years
- Payout: 3–10 working days after a successful campaign
- Special feature: no collateral needed, also for fast-growing companies
5. iwoca – flexi loan for small businesses
iwoca is a fintech founded in London in 2012 with offices in Berlin and Frankfurt in Germany; according to its own information, iwoca has given more than 100,000 SMEs access to credit. The focus is on flexible credit lines for small businesses. The special feature: interest is calculated to the day, and early repayments are free of charge at any time. iwoca is particularly suitable for companies with fluctuating liquidity needs.
- Loan amount: €1,000 – €500,000
- Interest: 1–2.99% per month on the outstanding amount (nominally about 12–36% p.a.)
- Term: flexible up to 60 months
- Requirements: registered office in Germany, at least 2 months in business, annual turnover of more than €22,000
- Payout: 24–48 hours
- Special feature: repayable free of charge at any time, interest calculated to the day
6. FINOM – credit line in the business account
FINOM is a European fintech focused on business accounts and financial services for self-employed people and small businesses. The integrated credit line gives quick access to liquidity directly from the business account – ideal for freelancers and small teams who want to work flexibly.
- Credit limit: up to €50,000 according to the provider
- Interest: individual after review – current terms were not publicly available on finom.co
- Term: revolving credit line
- Payout: directly into the existing FINOM account
- Special feature: interest only on the amount used
Requirements for a business loan in Germany
The requirements vary by provider and loan amount. While traditional banks apply strict criteria, fintech providers are often considerably more flexible. Here are the typical minimum requirements:
Typical requirements for borrowers
Documents required for the loan application
To apply for a business loan you should have the following documents ready. The more complete your documents, the faster the processing:
- Business registration (Gewerbeanmeldung) or commercial register extract (no older than 3 months)
- Latest BWA (management accounts, Betriebswirtschaftliche Auswertung) or a statement of income and expenses
- Annual accounts for the last 1–2 years (if available)
- Bank statements for the last 3–6 months (often digitally via a PSD2 interface)
- Copy of ID of the managing director or owner (identity card or passport)
- Self-disclosure on the financial situation and the intended use
Tips and warnings for your business loan
7 important tips for taking out a loan
- Always compare the effective rate: only it shows the real total cost including all fees. Note: the obligation to state the effective rate (section 16 PAngV, the Price Indication Ordinance) applies only to consumer loans – many business loan providers state monthly interest or fees. Convert these into total costs
- Get several offers: use brokers such as COMPEON (around 300 partners) or FinCompare (100+ partners) for parallel enquiries
- Check extra repayment rights: free early repayment can save considerable interest, especially with fluctuating revenue
- Prepare complete documents: complete documents speed up processing by days or even weeks
- Check public funding: promotional loans from KfW (the state development bank) and the regional development banks are often cheaper than ordinary bank loans and are applied for through your house bank – before the project starts
- State the intended use specifically: purpose-bound loans (e.g. for machinery) are often cheaper than free-use loans
- Optimise the term: a longer term means a lower instalment but higher total cost. Find the right balance.
Warning: avoid these mistakes
- Borrowing too much: only borrow what you can demonstrably repay from cash flow
- Overlooking hidden fees: watch for processing fees, account fees, commitment fees and payout discounts
- Choosing too short a term: an instalment that is too high can endanger liquidity and lead to payment problems
- Dubious providers: beware of demands for advance payment, unrealistic promises or missing imprint details
- Underestimating collateral: personal guarantees can put your private assets at risk if you default
Sources and methodology
This comparison is based on publicly available information from the providers (as of October 2026). The interest rates given are "from" rates for customers with the best credit standing. The actual rate is set individually after a credit check and can differ considerably.
- Deutsche Bundesbank: statistics on the lending business of German banks
- KfW SME Panel 2025
- Official websites and price lists of the providers named
- BaFin register of financial service providers and payment institutions
- Commercial register extracts of the providers
Last updated: October 2026. All information without guarantee. This article is for information purposes only and does not constitute financial advice.