Depending on its characteristics, its ambition and your personal and professional situation, the financing of your business creation project will result from the combination of several sources of financing .
Don’t underestimate your financial needs
Project leaders in the business creation phase often tend to underestimate their need to limit debt. Don’t fall into this trap! Indeed, a good assessment of your investment and operating needs will have the effect of:
the starting cash which will be necessary to meet the first expenses ( starting WCR ): rent, insurance, commercial actions, purchase of supplies, travel expenses, salaries, social charges, electricity…?
either brought by you (with the help of one or more relatives, if necessary : donations or equity investments) and your associates (if you are creating a company),
or by economic activity. Indeed, during the cruising period, if your company generates profits, a part will be kept in equity to be used in particular to finance investments. Your business will therefore have less recourse to debt and will be more resilient in the face of economic difficulties.
On the day of creation, equity is made up of initial capital: your personal savings, those of your associates, ARCE if you are a compensated job seeker, a loan of honor , etc. They will allow you to:
finance what is not financed by the banking system and in particular the WCR (working capital requirement),
and apply for a loan , because without equity it is very difficult to obtain a bank loan.
As a general rule, to request a bank loan, the equity must represent approximately 30% of the financial needs , except in special cases.
The use of investors
If your equity is insufficient to start your business project (or later to relaunch or develop the activity) you have the possibility of strengthening it by calling on natural or legal persons ready to invest in the capital of your company. You can also collect donations from individuals on a crowdfunding or crowdfunding platform.
In business creation, the opening of the capital to investors makes it possible to supply the equity, to inflate the capital and thus to qualify for larger loans.
In the case of startups with an ambitious growth project requiring the realization of significant investments, we speak of “fundraising”.
Depending on the characteristics of your project and its development prospects, you can apply for a bank loan or contact a microcredit organization. Be aware that in the majority of cases, banks finance what is “sustainable” (investments) and start-up stock. They will be more reluctant to finance WCR.
You can also request a loan of money from individuals, via a crowdfunding platform , crowdlending (Crowdfunding specializing in business loans).
TousNosProjets crowdfunding platform: increase your visibility by submitting your project on our TousNosProjets crowdfunding platform . You will be able to find projects financed and in the process of being financed.
You can access the platform with a ” contributor ” profile by investing in a project, or propose a project to be financed as a ” project leader “.
Before contacting funders, put the odds on your side
In general, a well-prepared, coherent business creation project carried out by one or more motivated creators will have every chance of obtaining funding. Present to the funders you are requesting a complete, precise, clear and neat file… in a word “seller”!
To help you succeed in your business project, use the “My business plan” application offered free of charge by Bpifrance-creation.fr in the Pass entrepreneur .
And above all, prepare for the interview with the help of an advisor. Practice pitching