Digital application route for the KfW fast loan
The corona crisis is presenting small and medium-sized enterprises with liquidity bottlenecks that threaten their very existence. In addition to the existing programs, the KfW Quick Loan launched on April 15, 2020, is designed to provide even better relief, for which the state bank assumes 100 percent of the banking risk. To ensure that urgently needed funds reach companies even faster, the Frankfurt-based fintech CAPTIQ has developed a digital application route in a very short time, which all banks and savings banks can integrate into their online offerings.Fast help is needed to save the backbone of the German economy from a financial collapse triggered by the Covid 19 pandemic. That is why the German government has extended the protective umbrella for companies and is providing 100 percent protection for these quick loans. The house banks bear no risk of their own and can carry out a simplified credit check. This is intended to ensure that the money quickly gets to where it is most urgently needed. However, a decisive obstacle still stands in the way of short-term disbursement: a huge volume of applications that, in combination with analog application processes and too few loan officers, can only be reduced slowly.Application process reduced to five minutes In exchange with KfW, the Frankfurt-based fintech CAPTIQ, which specializes in the automated evaluation and processing of many loans with a volume of less than 1 million euros, built a suitable online application route for the KfW fast loan in less than 48 hours. The other KfW Corona programs are currently being integrated into the application route and should be available by April 22, 2020. The universally applicable tool can be used individually by each bank and placed via a dedicated link, for example, on the bank's website. This allows the customer to apply for the loan digitally and submit all relevant documents. Including the link on the website keeps the IT effort for the house bank minimally invasive. 'Our business model is based on a B2B approach, which is why our solution is designed to be used on the front end of connected partners anyway,' says co-founder and CEO Soraya Braun. 'Therefore, only a few days after the announcement of the KfW fast loan, we can present a solution that immediately makes the flood of applications manageable for financial institutions. As a fintech, we see it as our duty to come up with efficient ways to manage the crisis.'
The application process is reduced to five minutes, the bank receives the prepared application immediately, adapted to KfW's requirements. Individual adjustments for individual institutions can be implemented within a few days. Customers and their data remain with the bank accepting the application. Through the customer's digital self-registration, applications are handled efficiently and quickly, process costs are saved, and more urgently needed aid reaches the customer. 'This means a considerable relief for banks and savings banks, especially in the front office, and for companies an enormous gain in time until the loans are disbursed. During implementation, the focus was on increasing access to Corona aid by offering an individual solution for banks and making it available to your customers in their own corporate identity,' says co-founder and CEO Lorenz Beimler. 'Since KfW Corona aid can only be applied for through the house bank, we want to provide quick relief with this solution.' As a venture of the company builder Fincite, CAPTIQ can rely on sufficient developer and server capacities for the expected rush of applications.
KfW Quick Loan 2020 Companies have been able to apply for the new KfW Quick Loan 2020 for acquisitions (investments) and running costs (working capital) since April 15, 2020. The loan is 100 percent secured by a guarantee from the federal government, which should significantly increase the chances of a loan approval. The maximum loan amount is up to 25 percent of annual sales in 2019. Companies with up to 50 employees will receive a maximum of 500,000 euros, while companies with more than 50 employees will receive up to 800,000 euros.
Contact for queries:
Lorenz Beimler, Managing Director (CEO)
Soraya Braun, Managing Director (CEO)
Frankfurt, 20 April 2019 / Published on Onvista
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