Default Guarantees of the Bavarian Guarantee Bank

The Bürgschaftsbank Bayern provides credit and leasing guarantees within the framework of default guarantees to replace missing or insufficient collateral in the financing of small and medium-sized enterprises. As a regionally anchored self-help institution, it promotes economically viable projects in Bavaria and thereby supports trade, crafts, hotel and restaurant industries as well as gardening and landscaping. The guarantee assumes the risk that banks, building societies, or lessors would shy away from in unsecured or partially secured projects, thereby improving the collateral class of the applicants. This enables business-appropriate capital procurement that would often not be feasible without a guarantee. Support is provided continuously without a fixed deadline and offers flexibility for long-term financial planning.

The objective of the measure is to prevent the failure of investments or business expansions solely due to a lack of collateral. Beneficiaries are all small and medium-sized enterprises based in Bavaria that seek credit or leasing financing and do not have sufficient equity or third-party funds. A prerequisite is classification within the sectors of trade, crafts, hotel and restaurant industries, or gardening and landscaping. Thanks to the counter-guarantees from the Federal Republic and the Free State of Bavaria, Bürgschaftsbank Bayern GmbH can reliably fulfill its guarantee obligations. Interested companies can submit their application at any time and thus underpin their investment or growth projects with additional security.