No, Cofinancing or Cofinancing for young innovative starters can also be applied for when negative cash flows are realised. However, there must always be commercial traction and repayment capacity evident from the financial plan submitted. For companies that have positive cash flows or realise them shortly after the credit has been made available, Cofinancing is a suitable product. For companies that only realise positive cash flows in the longer term, Cofinancing for young innovative starters is suitable.

Generally, PMV operates without guarantees. PMV’s credit committee will decide in each case whether guarantees are deemed necessary. The guarantees for PMV are in principle limited to a joint and several guarantee (with or without wage waiver), a mortgage mandate or a pledge on the shares. In addition, PMV can also opt for signing commitments from directors or shareholders such as a ‘cash deficiency’ clause. In a Cofinancing for young innovative start-ups, none of the above guarantees are imposed.

Research and development (R&D) funding for companies in the development phase is not eligible for Cofinancing, including Cofinancing for young innovative start-ups. Products or services must be commercialisable and market traction must be demonstrated. Adaptations that need to be made to a working basic product or software according to the concrete needs of a customer are not considered R&D. For already existing companies with a proven track record of favourable results, financing of working capital for R&D purposes may be considered in the context of expanding their activities. In concrete cases, PMV can be contacted to assess the situation.

The modalities of a PMV product should be applied to the investments allowed by PMV. For example, if research and development is financed with own resources, this contribution will not be counted as part of the necessary minimum own contribution. Moreover, PMV will only guarantee a maximum of 50% of the permitted investments.

If the business angel is affiliated to a network recognised by PMV, the funds provided are considered to be those of a co-financier. In addition, the same funds are considered as own contribution insofar as those funds are subordinated to the credit granted by PMV.

Own contribution can be met by the contribution of specie or contribution in kind, or a combination of both. The most common forms are contributions of equity, capital or subordinated loans from (future) shareholders. Convertible loans are eligible as long as they are converted or not repaid during the term of the PMV loan. Funds contributed to the company up to 6 months before the application date of the PMV loan can be considered as own contribution. The date of the deposit is taken into account for this purpose.

The standard withdrawal period is 12 months and starts on the day of the preparation of the credit proposal. The actual drawdown can take place after the conditions set for inclusion in the credit proposal have been met. As this is a subordinated loan, drawdown is only possible after own funds and funds from the co-financier have been spent.

PMV takes its decisions on the basis of an investment plan. PMV decides conditionally on planned financing; that is, it does not yet have to have been agreed. An investment plan should be as fixed as possible given that every change has to be reassessed. Before the loan is taken up, the planned financing must have been agreed, contributed and used.

For the Start Loan and Cofinancing, the interest rate – currently 3%. For the Cofinancing for young innovation companies, the interest rate is currently 4%. The interest rate applies as long as the grace period of capital repayments is less than 2 years. For 2 or 3 years of deferred capital repayments, the interest rate is increased by 0.25% or 0.50% respectively. The interest rate remains the same throughout the life of the loan.

Credits are always repaid on the basis of monthly repayments. Quarterly repayments, semi-annual repayments or other formulas will not be allowed.