Finding financing to build your company
Verified 05 November 2021 - Directorate for Legal and Administrative Information (Prime Minister)
Amounts paid to the tax authorities on a transfer of ownership (for a sale), or free of charge (for an inheritance or donation)
What applies to you ?
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Individual business You create a
Here is a non-exhaustive list of how to finance your company creation project.
These may be:
- savings on your bank accounts,
- sums of your payroll and/or group savings plan (PEE, PERCO, PEI).
To help you create your company, your loved ones can help you gifts of money. But certain conditions must be met.
The donation may be made by deed made at the notary's house or in the form of a written document.
The amount may be remitted by check or transfer or money order or cash.
Certain conditions must be met in order to benefit from an exemption from transfer duty, including:
- You can only get a money donation from your parents, grandparents, great-grandparents, aunts/uncles, great-aunts/granduncles
- The person who donates to you must be under 80 years of age
Your seed money can be supplemented by honorary loans which will allow you to later be able to borrow from a bank.
If you have little or no equity, you will not be able to borrow from a bank.
Honor loans are zero-interest loans granted to you in your personal capacity. They are unsecured, of flexible duration and of variable amounts.
The main loan is obligatorily coupled with a bank loan.
BPI Creation offers a list of organizations awarding honorary loans:
This crowdfunding allows you to to raise funds from individuals through dedicated platforms.
It exists 2 forms of financing :
- Gift : These are amounts of money committed to the project for which a reward may be offered (e.g. samples). There is no return on investment from donations. Examples of platforms: KissKissBankBank, Ulule.
- Interest-bearing loan : You agree through a contract to repay the lenders. However, if the project fails and there is no loan guarantee, repayment may not be made. Examples of platforms: October, Tudigo.
You can subscribe to competitions that reward company creators by industry.
The money you receive through a competition you win can be directly integrated into your company's equity.
Winning a contest can also help you get known and meet potential partners.
It exists several categories of competitions :
Of specific aid can be granted by many organizations if you have a innovative project.
BPI Creation introduces the organizations that can provide you with this help:
If you are job seeker compensated by Pôle emploi, you can apply for capital under several conditions. The amount is calculated according to your remaining unemployment benefit entitlements.
To apply for and obtain the CRA, you must complete all of the following conditions :
- Create or resume a company
- Get help for company Creators or Buyers (ACRE)
- Qualify for Return to Employment Assistance (RWA) benefits
- Do not already benefit from the cumulation of the ARE with a remuneration
Payment of the CEAA shall be made in 2 times :
- The first half shall be paid at the earliest on the date on which you meet the conditions for the award of the CEAA
- The second half shall be paid 6 months after the date of creation or takeover of company, and provided that you are still in operation.
With banks
To borrow money from a bank, he is very often it is necessary to have your account at home.
It is rather recommended to have a 50/50 equilibrium between your own funds and your loans.
In general, it is required that the company has at least 30% of its sustainable needs.
However, this requirement may vary depending on the activity you are entering into and its level of risk.
Different banks have different borrowing terms. It's a good idea to do your research and compare the different interest rates, repayment periods or loan guarantee methods requested.
You must provide your business plan at the bank.
The goal is to have as realistic a plan as possible to reassure the bank and to welcome your loan request.
The bank is free to accept or refuse your loan request.
However, in the event of a refusal, the bank must give reasons and substantiate its decision. This allows you to understand the sensitive areas of your case and find solutions to improve them and reapply for a loan.
When you want to borrow money from a bank, the bank will ask you for guarantees to ensure that the loan will be repaid. These may be guarantees you will give on the financed goods or personal guarantees.
FYI
you can borrow with several banks to spread risk.
Outside the banking system
- If you haven't obtained all your financing through the banking system or if you are embarking on the social and solidarity economy sector, you can call on solidarity funders.
BPI Creation offers a list of solidarity funders:
Seeking funding for the social and solidarity economy
- If you are excluded from the regular financial system because you do not have sufficient collateral, you can use a micro-credit institution.
It can provide you with the usual services of a financial institution and support for the realization of your project.
Example: Adie offers micro-credit and additional financing (loans of honor and/or premiums depending on the region).
To identify them, you must refer to the national company aid base. It lists the aid currently implemented by the State and by the local and regional authorities (region, department, municipality).
You create a business
Here is a non-exhaustive list of how to finance your company creation project.
These may be:
- savings on your bank accounts,
- sums of your wage and/or group savings plan (PEE, PERCO, PEI).
To help you create your company, your loved ones can help you gifts of money.
But certain conditions must be met.
If you are creating a SARL, SA or SAS, loan donations from your loved ones can help you build up your seed capital.
In return, your loved ones become your associates and get titles from your company.
These titles give them certain rights, including the right to company benefits and the right to take part in decisions concerning your company.
On the other hand, they will only be able to recover their contribution when they decide to sell their shares.
Your seed money can be supplemented by honorary loans which will allow you to later be able to borrow from a bank.
If you have little or no equity, you will not be able to borrow from a bank.
Honor loans are zero-interest loans granted to you in your personal capacity.
They are unsecured, of flexible duration and of variable amounts.
The main loan is obligatorily coupled with a bank loan.
BPI Creation offers a list of organizations awarding honorary loans:
The crowdfunding allows you to to raise funds from individuals through dedicated platforms.
It exists 3 forms of financing :
- Donation: these are amounts of money committed to the project for which a reward can eventually be offered (samples, for example).
There is no return on investment from donations.
Examples of platforms: KissKissBankBank, Ulule. - Interest-bearing loan: you agree to repay the lenders through a contract.
However, if the project fails and there is no loan guarantee, repayment may not be made.
Examples of platforms: October, Tudigo. - Participation in the company capital: this collection takes the form of subscription to ordinary shares or fixed-rate bonds.
Investors expect a return on an investment that will depend on the success of the project.
Example platform: Entrepreneurs.
Warning
Your initial capital can only be recovered if your company or its securities are transferred. They belong to the company.
You can subscribe to competitions that reward company creators by industry.
The money you receive through a competition you win can be directly integrated into your company's equity.
Winning a contest can also help you get known and meet potential partners.
It exists several categories of competitions :
Of specific aid can be granted by many organizations if you have a innovative project.
BPI Creation proposes a list of the organizations granting this aid:
If you are job seeker compensated by Pôle emploi, you can apply for capital under several conditions.
The amount is calculated according to your remaining unemployment benefit entitlements.
To apply for and obtain the CRA, you must complete all of the following conditions :
- Create or resume a company
- Get help for company Creators or Buyers (ACRE)
- Qualify for Return to Employment Assistance (RWA) benefits
- Do not already benefit from the cumulation of the ARE with a remuneration
Payment of the CEAA shall be made in 2 times :
- The first half shall be paid at the earliest on the date on which you meet the conditions for the award of the CEAA
- The second half shall be paid 6 months after the date of creation or takeover of company, and provided that you are still in operation.
Investment funds: venture capital
There are several hundred investment funds made up of professional shareholders. They can invest in your business by participating in the capital in a minority or majority way.
BPI Creation provides information on these investment funds:
Know the venture capital players
Business angels
To help you finance your company, you can call on business angels, otherwise known as angel investors.
These are usually company executives or former entrepreneurs who will be willing to invest in your project if they see potential.
The business angel can make a direct financial contribution to your company and/or allow you to find other financing through its network.
BPI Creation provides information on business angels:
With banks
To borrow money from a bank, it is very often need to have her account at home.
It is rather recommended to have a 50/50 equilibrium between your own funds and your loans.
In general, it is required that the company has at least 30% of its sustainable needs.
However, this requirement may vary depending on the activity you are entering into and its level of risk.
Different banks have different borrowing terms.
It's a good idea to do your research and compare the different interest rates, repayment periods or loan guarantee methods requested.
You must provide your business plan at the bank.
The goal is to have as realistic a plan as possible to reassure the bank and to welcome your loan request.
The bank is free to accept or refuse your loan request.
However, in the event of a refusal, the bank must give reasons and substantiate its decision. This allows you to understand the sensitive areas of your case and find solutions to improve them and reapply for a loan.
When you want to borrow money from a bank, the bank will ask you for guarantees to ensure that the loan will be repaid. These may be guarantees you will give on the financed goods or personal guarantees.
FYI
you can borrow with several banks to spread risk.
Outside the banking system
- If you haven't obtained all your financing through the banking system or if you are embarking on the social and solidarity economy sector, you can call on solidarity financiers.
BPI Creation offers a list of these funders:
Seeking funding for the social and solidarity economy
- If you are excluded from the regular financial system because you do not have sufficient collateral, you can use a micro-credit institution.
It can provide you with the usual services of a financial institution and support for the realization of your project.
Example: Adie offers micro-credit and additional financing (loans of honor and/or premiums depending on the region).
To identify them, you must refer to the national company aid base.
It lists the aid currently implemented by the State and by the local and regional authorities (region, department, municipality).
How do I finance my company creation project?
Who can help me?
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Banque de France
National Institute of Consumer Affairs (INC)