Glossary
Bürgschaftsbank (guarantee bank)
State-backed promotional institutions in each German federal state that guarantee bank loans when collateral is missing. In takeovers, this is often an important building block, for example combined with promotional loans from KfW (Germany's state development bank).
Related termSeller Loan (Vendor Loan)The previous owner defers part of the purchase price, and the successor pays it back in instalments from the company's earnings.Next Read moreFinancing a business succession: How to pay for the takeover.Next
FAQ
Frequently asked questions
What is a Bürgschaftsbank?
A state-backed promotional institution in a German federal state that guarantees bank loans when collateral is missing.
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