Professional loan for business creation
By default, banks are reluctant to lend to limit their level of financial exposure. The credits are nevertheless part of the principal sources of income of these actors. As a result, the banking institutions remain privileged interlocutors for to obtain financing.
They only need to be reassured about the profitability of your business creation project.
What is a business start-up loan ?
The search for financing is generally problematic for entrepreneurs. However, many options are available, such as the business start-up loan. It is a credit intended for business creators and companies in the process of being incorporated.
You can also use this solution for a business recovery.
The professional credit can be requested by an entity or a company auto-entrepreneur The company must be a craftsman, a commercial, an agricultural or a liberal activity. In principle, the sector of activity has no impact on the attribution of this type of loan. Banks focus on your profile and the potential of your project.
In practice, potential financiers often exclude markets considered as saturated.
During the start-up phase, the business loan allows to complete the personal contribution of the entrepreneur or the partners. It can be used, among other things, to acquire production tools or to meet your cash flow needs. According to your situation, different types of loans are possible.
You can, for example, use amortizing credit, leasing or factoring.
Factoring is a form of financing that is relatively unknown to entrepreneurs. However, this system is an efficient way to fill the cash flow of a new activity. It consists of assigning your bills to a third party, in this case the bank.
The latter will take care of your short-term debts while waiting for payments from customers.
How to obtain a business loan ?</
You must meet certain conditions for obtaining a business start-up loan. Your establishment must first and foremost be in the process of starting up. In addition, you are not supposed to have applied for any other credit for more than two years.
Your financing plan must also be less than 45 000 euros. In addition to these rules, each bank applies its own criteria for granting or refusing loans.
In concrete terms, financial institutions focus on profitable activities and promising concepts. You must therefore provide the documents justifying the credit application, proving your reliability and showing the viability of the project. It will be necessary to include in your file :
- A CNI (national identity card) or other identification document;
- A business plan ;
- A financing plan;
- A proof of residence ;
- Recent bank statements;
- Guarantees for the loan (personal contribution, deposit, assets…);
- Company identifiers in the official registers (Kbis, SIREN, NIF…).
Your request for a loan serves essentially to arouse the interest and gain the confidence of the bank. Therefore, you must prepare and write your business plan well. It allows you to evaluate the relevance and profitability potential of the project. If it is sufficiently attractive, you will be asked to attend an interview or to present your future business to a committee.
You already have a guide to argue with a solid business plan.
What can be financed with a business loan ?
Basically, the professional credit is intended for to finance the creation, operation and development of a company. You can thus resort to this solution to create, take over or extend an activity. On the other hand, the professional loan for the creation of a company targets mainly the start-up phase.
It provides specific measures to facilitate the realization of an entrepreneurial project.
Most often, the amounts proposed are relatively low, in the order of 2 000 to 7 000 euros. These thresholds allow you to limit financial risks and guarantee requirements. The procedure is also simplified to accelerate the realization of the projects of the business creators.
Therefore, the credit helps to cover urgent needs, especially in terms of working capital.
Generally speaking, the funds requested can be used to finance your material, immaterial, real estate and cash flow needs. They will allow to acquire for example :
- Professional premises;
- Storage space;
- Computer equipment;
- Office furniture;
- Licenses ;
- Patents, etc.
In short, the business loan can be used for any investment needed by the company.