LRM is a financial investor. In principle, it does not intervene in the day-to-day management of a company. The quality of the owner-manager and of the management team represents a key criterion in every one of LRM's investment decisions.
A careful enterprise plan maps the opportunities of an investment (commercial, technical, organisational and financial). A well-thought-out business plan takes time, but is necessary to evaluate a project.
LRM invests in companies developing activities in Limburg. This means that LRM can invest in foreign companies on condition that these companies perform activities in Limburg. Secondly, LRM also invests in Limburg companies in connection with foreign financing projects, in order to strengthen the Limburg entity.
Large companies that are temporarily experiencing financial difficulties due to the crisis can make a claim for “replacement capital” from LRM.
Replacement capital is a subordinated loan to provide equity capital and solvency for the company. To be eligible, companies must be structurally sound and be able to demonstrate their long-term prospects.
The PLUS-lening (or PLUS loan) is intended for established small family firms in the small-scale industrial and service sectors. High-quality start-ups that can present a profitable activity right from the start are also eligible. This is a standardised subordinated loan without guarantees that is provided as a supplement to bank loans and financing from own resources. Bankers regard it as additional quasi-equity capital and thus as leverage for more bank financing.
The PLUS-lening is granted for amounts from 250,000 to 600,000 euros at an interest rate of 6% per annum.
The business plan needs to show that the SME is generating sufficient cash flow to be able to repay the loan.
Other sources of finance
In addition to LRM, there are also interesting government initiatives on the market such as the guarantee scheme and the win-win loan from PMV and several financing options from the Federal Participation Fund.