Dr. Erwin Annau KMU Financing

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Interview

Interview with Dr. Erwin Annau, internationally recognized specialist for financing of small and medium-sized enterprises, as well as of large-scale projects on the environmental technology and informal sector.

Financing professionally (FP):
Dr. Annau, Sie already it concerns itself for quite some time with the problem that banks can not to represent course particularly with new projects and new technologies financings simply and lead thus many breaking developments of Europe a shade existence and by US investor into the USA are gotten mostly sometime.

Dr. Erwin Annau:
Completely correctly. It is to be seen shaking, how the formation of own capital funds prevented the decades of the social-democracy with the high taxes. There is in Europe practically no fishing rod of investor, no investors, ready is considerable amounts with higher risk to be invested.

FP
They write in an article that banks require 10-30 per cent own capital funds with real estate investments, with tourism 30-50% and that with new technologies practically 100% own capital funds would have to be present.

Dr. Erwin Annau
Yes. An inventor or a someone, some procedure developed can not at all differently, than suitable Inkubator centers in the USA looks for each other, which give him the star assistance, so that it can bring its technology to ready for the market ones.

FP
Now you developed a special financing form for their clients, a loan, which is paid not with interest, but with shares in the profits.

Dr. Erwin Annau
Now, developed is too much said. This kind of loans already gives it since the Roman world realm. It is new that one can use it today as rescue of the medium-sized enterprises.

FP
For whom these loans are accessible

Dr Erwin Annau
These loans are for:

• Existing enterprises by more own capital funds the jump the medium-sized enterprise or the stock exchange course to make want
• New technologies, which proven and developed and commercially or industrially to be used and on the market brought are
• Projects, to which the bank-moderate provision of security is missing or which own resources necessary for bank credits do not have

FP:
That sounds very interesting. What are the conditions, if someone wants to take such a loan up?

Dr. Erwin Annau
The conditions are:
•  A technically feasible and matured project
•  A feasibility study, one at least 5-Jahres prognosis
•  A detailed representation of the project, the Markes, the chances and Risken
•  At least 8%, better 10-20% yield per year according to project calculation
•  Necessary properties must be secured by options
•  A qualified management must be present
•  5% own resources (in individual cases 3%) must be able to be proven by means of bank confirmation
•  A positive evaluation by my enterprise, safefinanz the fortune and financing consultation GmbH and the financial source

FP:
That is surely possible for many projects. Don't you become there with Projeikten almost ueberschuettet?

Dr. Erwin Annau
They met the nail the head. Nearly daily projects come over mean desk and the majority are eligible for financing to the criteria specified above.

We must out-select therefore.
In practice projects have priority for me, which bring new technologies particularly at the umweltsektor into the market. The pollution-control technology has immense wachstumschancen. Many technologies are lost, because the large-scale industry from interest conflict is not interested in it. Here we can prevent the sellout and the Schubladierung of new technologies and platzieren the technologies stably at the market. The expansion potential is tremendous.

Stretching for me that is personal, if I can finance technologies, which let literally grow in the desert plants and grain. Also energy technologies, those the CO2 balance do not load belong to my favorites.

Afterwards other projects come, e.g. biological agriculture, leisure centers, senior homes, hotel and real estate projects, in addition, infrastructure projects.

FP:
What makes someone, if its project is not so large or if into the category it did not prefer it projects fits?

Dr. Erwin Annau
Here I come with my experience as a project developer into the play. I have a recreational park for example as model company for newest pollution-control technologies umplanen to leave. The operators enormous amounts at energy costs do not only save, the project became a Herzeigeprojekt for these technologies and from all world prospective customer will tighten, who wants to use these technologies with their hotel and leisure facilities.

Even an annual environmental fair is to take place there with an environmental price.

As example of "to small project" I united 2 telecommunications enterprises. The project over 10 millions with excellent net yields for the operators and the financial sources was common

FP:
How now such does a profit-dependent loan look?

Dr. Erwin Annau
There are some basic parameters, which we keep: 

• The necessary loan height is at least 10 millions euro, upward is practically no border. We financed also projects close 1 billion euro.
• The profit-dependent loan has a running time of 21 years
• The loan is interest and of grace
• It comes to NO REPAYMENT of the loan validity! After 21 years the loan is to end, the loan validity needs not to be re-imbursed and is not thereby freely available own capital funds of the enterprise
• No interest is paid at run time
• The money lenders receive a profit-sharing from 49% of the obtained profits, annually, after statement of these profits in the general meeting or general assembly
• The project initiators keeps 100% of the shares. Thus no portions must be retired on outside standing investors
• 49% of the shares are deposited for the sicherstellung of the loan with a notary.
• Beyond that no collateral does not have to be placed, thus no hypotheken, personal adhesion, no endorsements.
• For the financing own getting thing (also abroad) can be inserted
• The loan is non-voting. The partners keep all being correct rights
• The loan is to be treated in the balance such as own capital funds. Thus the own capital funds ratio increases to 100%.
• Promotions can be used for further expansion.
• The financing is bank independent

FP:
Dr. Annau, Sie inspired me with these loan characteristics. If I have now such a project, how I get the loan?

Dr. Erwin Annau

• For the loan we need own capital funds of 5% in individual cases at least 3%
• Own capital funds should remain permanent in the enterprise, we had already cases, in which own capital funds were re-imbursed after 4 months again to the financial source. That can be done however only with really good projects.
• The provided funds are secured by us with the help of our particularly developed Seed Money Insurance of program (SMIP) with bank-guaranteed papers. In (theoretical) the case that the loan was not paid off - which never after written loan promise the case was - the investor became after one year 2/3 of the money with approx.. 6.8 per cent of interest charges back gets and the remaining third after somewhat more than 3 years with annual interest charges of approx.. 7,5%. The investor has to carry thereby no risk. Its money is always by AAA of papers secured and under its own control and partly under control of a notary selected by it.

FP:
The completion does not go thus over a bank?

Dr Erwin Annau
No, the banks do not see gladly, how we promote the middle class. We use for those

• Completion a notary selected by the project operator
• We supply a security of the achievements of the money lender by bank-emitted securities (AA or AAA loans)
• The capital is absolutely clean origin. It is world-wide drawn and found by over 700 financial selling. There ten thousands Finanzdienstleister work, particularly in Asia and the USA on the procurement of the funds.

FP:
Where the enterprises are to announce themselves

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