Before getting started, it is good to remember that it is important to obtain information and choose the right loan to create your business
Make a business plan
To convince a banking establishment to obtain a bank loan for business creation, it is necessary to prepare a business plan. As such, it must be careful, complete and precise.
The business plan includes different sections, including:
To create a business plan , it is possible to seek advice from professionals or to entrust this mission to specialists .
The financing plan describes the various project subsidies. Furthermore, it is used to evaluate its profitability over time. It is advisable to present an executive summary and clear forecast tables to the banker to facilitate the study of the file .
To assess the need for financing, we must avoid minimizing costs . Indeed, a fair assessment of expenses makes it possible to ensure that you have the necessary funds for starting activities and to avoid cash flow problems.
Please note : personal contribution must be taken into account in the financing plan to demonstrate that the project leader is motivated and involved. In addition to borrowing, there are aids and subsidies for business creation granted by the State or the regions.
Guarantees
Guarantees are imposed by banks and condition the majority of loans granted. They are put in place to cover the financial risks linked to the loan granted and guarantee its payment. The guarantees can be constituted by a personal guarantee or a mortgage.
Ask the banks
To benefit from the best conditions, it is preferable to study all the proposals and contact several banks . In fact, the terms of granting and the rates applied vary from one establishment to another.
Good to know : it is possible to negotiate the cost of the loan. To do this, it is important to control the interview by presenting the banker with a cash budget based on reasonable forecasts. The establishment of a weekly account monitoring process can also have an impact on the negotiation.
What are the loan rules for starting your business?
The rules relating to business creation loans have been simplified to allow project leaders to access start-up financing.
Loan Features
The business creation loan is a personal loan which does not require guarantee and must be repaid within 5 years following its subscription. It is associated with a bank loan whose amount is at least twice as large.
Good to know : the business creation loan, also known as the PCE, is no longer in force since March 31, 2015.
What to do if the bank loan is refused?
Reviewing your project allows you to rectify the points that contributed to the bank’s refusal . The latter must normally justify its decision. It is also an opportunity to improve the business project, if necessary.
Good to know : the entrepreneur can use credit mediation to benefit from easier access to loans for business creation.
Other financing solutions
Other financing solutions are available for project leaders who have not been able to obtain a bank loan for business creation. Indeed, public and private organizations offer numerous alternatives .
Good to know : in addition to financial assistance, certain networks such as Initiative France offer support programs for business creation.
Honorary loans
Honorable loans are credits granted to encourage business creation or the resumption of activities. Among their advantages are the zero interest rate and the non-required personal guarantee .
Good to know : for the creation of a business, the honorary loan is granted to the entrepreneur, on a personal basis.
Microcredit
Microcredit is financing granted by institutions specializing in microfinance to entrepreneurs who cannot qualify for a traditional bank loan due to their low income. They are repayable over 2 years or less.
Crowdfunding
Crowdfunding consists of appealing to various investors, particularly through crowdfunding sites . Contributions can take the form of participation in the capital of the company, loan or even donation.
This type of financing is suitable for entrepreneurs who do not want or cannot contact financial institutions. This option is also indicated to complete a bank loan. Beyond the financing solution, it is also the way to build a community around the business project.