To create and grow a business, you will always need fundung. If your cash flow is not sufficient to finance your project, there is always the option of using various forms of subsidy. It is therefore important to know which sources of funding are accessible to you…
The bank loan option
Banks remain the main financial partner for many businesses, especially Small and medium-sized enterprises (SMEs). They can offer many types of services with very interesting benefits. Whether you are starting or expanding a business, a bank loan can help you achieve your goals. You will have a wide range of choices, as there are many banking institutions with different offers out there. Just compare them to find a bank that best suits your needs. However, unlike other sources of finance, banks do not share the same risks as business owners. In this case, the bank loan is given to certain businesses such as those with an excellent credit history, those with a sound financial situation, and those who can provide a personal guarantee.
The investor groups option
This is the most popular type of subsidy for many companies, the reason being that the different collaborators share the same risks. In return, you will have to accept that the investors have control over the management of your business. This may happen through a sharing of experience or a place on the company’s board. There are many different groups of investors such as venture capitalists, who largely deal with high-tech companies. You also have angel investors who are key allies of SMEs. Unlike venture capital, their funding is small, in the order of €25,000 to €100,000. There are also business incubators that try to promote job creation with start-ups.
Apply for government support
To encourage the creation and development of businesses, most governments have set up various sources of funding for which you may be eligible. Among these government aids, you have the aid for the creation and takeover of a business which aims at reducing the social security contributions of many businesses. You also have zero-interest loans, which can be obtained from state-approved banking institutions. Other types of funding are also available, especially if your company complies with the environmental standards in place at the time of your application.