April 12, 2016 1 comment Permalink
It is important when embarking on a business to have a financially strong backbone, and to be able to rely on safe capital, to finance the running expenses of the early years. Here are some ways to give yourself a boost to finance your business
As I already told you in a previous article, Financing undertaken by individuals is a solution that is gaining momentum. It’s about raising money directly from the public. This funding is often done through a specialized platform. In the early days of ” crowdfunding “, the funds raised were modest, but the platforms are growing, and the calls for financing can now reach sums of several million euros, and this in a few hours.
Financing by a private investor or “business angel”
A “business angel” is the “guardian angel” of a business. It finances the business directly, either through a conventional loan , or by taking shares in the business as a compensation guide, or a mixture of both. It is an ideal solution in the case of a wealthy investor, who can therefore inject as much money as necessary to the smooth running of the company.
Contests, grants and subsidies from the state to finance part of his business
The state gives many aids for start-ups. For example, let’s look at the Specific Young Innovative Enterprise (JEI) Scheme: any SME under the age of eight can benefit, and will be exempt from income and corporate taxes in the first year, and 50% the following year.
The Research Tax Credit (RIC) is used to finance the Research & Development sector of a company. Regions and other local authorities can also provide grants to start-ups.
For financing your business over time: the bank loan
The bank loan is ideal to give you the margin over several years. If you have already taken out a number of credits and this is blocking you from starting your business, consider credit redemption . It can be a good solution to pay only one lighter monthly payment by extending the duration of the credit .
Private banks offer loan solutions for business creation of up to € 200,000. Among these loans, the NACRE loan is aimed more specifically at young people and the unemployed, and allows them to start or take over a business, by providing financial planning assistance and financial structuring of the start of the activity.