For a company, financial needs are greater than for individuals, between working capital and one-off cash needs. However, when you are a young company, the banks are not always kind. With fewer guarantees and resources, credit institutions are often reluctant to advance you the necessary funds at the right time. There are very interesting alternatives that you can trigger to obtain financing, without necessarily going through the bank. Discover them here.
You may not be rich in money but you are rich in family and friends. Many people around you can help you fund your business. This financing can be expressed in the form of donations, but also in equity participation. This participation in the evolution of a company has many advantages, including tax. People who contribute to a young company less than 5 years old can benefit from a significant reduction in their tax. This reduction ranges from 18% for those subject to the IR, up to 50% for those subject to the ISF. Candidates for your financing will therefore not hesitate in this profitable placement. Nevertheless, it remains limited, with a ceiling of €100,000 for a couple and €45,000 for those liable for the ISF. But it is quite possible to multiply your donors. Another downside has to do with controlling your business. This participation allows others to enter the controlling body of your company.
This is a public call for investment, in the form of crowdfunding. In reality, crowdfunding is made up of a multitude of small loans from individuals and managed by a special organization. Today there are many crowdfunding organizations aimed at improving the financial situation of companies. They have a regulated status, approved by the Prudential Control and Resolution Authority. This status allows them to grant loans on behalf of their members. This mechanism appeals to individuals looking for a profitable investment than those offered by conventional banks. Companies, for their part, benefit from lower interest rates and less cumbersome procedures. It’s a win-win mechanism.
The loan of honor is a personal loan which any entrepreneur can claim to improve the financial situation of his company. Not intended to meet all the needs of the company, it nevertheless makes it possible to obtain a comfortable mattress in order to present a solid file with lending organizations. It is an important lever for business development. Support networks offer up to €90,000 in the form of a reduced-rate loan. You can get your quick personal loan simulation to get an idea of your commitments.
There are other possible means of financing for your company, in particular business angels looking for innovative activities to push, or inter-company loans.