Business creation: alternatives to bank loans

Its not always easy to get all finances ready to launch your business. Banks have restrictions and cannot lend to anyone without guarantee, however some business angels or other financial institutions might be able to help you.

Do you want to start your business or expand and are having trouble getting a loan from your bank? There are other ways to get funding! Business angels, crowdfunding, microcredit, etc. Overview of alternative solutions.

Fundraising from those around you

It is often the first idea when you are looking for financing: to appeal to your relatives. These funds collected from family members, friends and other relations are called love money (“money from the heart” or “proximity capital” in French). They allow you to benefit from tax exemptions or reductions.

You need to check the different regulations and tax opportunities from borrowing or receiving money from non financial companies.

In the family context, the beneficiary of a donation can indeed receive up to €31,865 without having to pay duties. On condition that :

  • the donor is under 80
  • whether the beneficiary is their child, grandchild or great-grandchild (or nephew or niece if the donor has no descendants)
  • whether the beneficiary is an adult or emancipated.
  • This donation must be the subject of a notarial deed, a private deed or a declaration of donation. The beneficiary must notify his public finance center within one month.

Honor loans

If your search for financing concerns the creation or takeover of a business, or if you are a young manager, you can turn to an honor loan. It is a loan without guarantee or personal guarantee, generally at zero interest, and registered in equity. Its amount can reach €90,000 for innovative projects.

This type of loan is offered by several support networks, such as Initiative France, Réseau Entreprendre or the Association for the right to economic initiative (Adie).

Here are 3 foreign companies who succeed to finance themself (self-finance) with a slow but study growth:

  1. Home Fresh grosir buah
  2. Ukuran sepatu safety
  3. Distributor Plat Besi

Obtained after selection and passage in front of a jury of professionals, honorary loans can also bring a gain of credibility to your project and facilitate the obtaining of bank financing. “The loan of honor has a significant leverage effect”, assures Initiative France. “For €1 of loan of honor, the banks grant on average €7.5 of additional financing. “.