Financial assistance available for setting up a business

What financial assistance is available for setting up a business?

When it comes to setting up your own business, few people are aware that there are a multitude of schemes in place to help and support you in the achievement of your project.

Whether you're an employee, looking to take over a business or a job seeker, you can benefit from regional and national aid schemes.

In addition to government grants, there are many other ways to obtain financing. Between grants, honor loans and bank loans, there is no shortage of financing solutions.

National and local aid

One of the best-known national grants is ARCE ( Aide à la reprise et à la création d'entreprises ). This aid, paid by Pôle-Emploi, provides a capital sum of around 45% of the unemployment benefit remaining in the capital of the business created or taken over by a jobseeker.

If you have an innovative company, you should know that you can benefit from the various national funding schemes set up by BPI France. Depending on the applicant's situation, this organization dedicated to supporting and developing entrepreneurship can provide assistance of up to 30,000 euros.

In addition to national aid, the départements and regions are also responsible for supporting start-ups. These include the NACRE (nouvel accompagnement pour la création et la reprise d'entreprise) scheme, which supports young people, jobseekers and entrepreneurs.

Private or mixed aid

An honorary loan is an excellent way of injecting equity or working capital into your project. These loans are particularly advantageous because of their zero interest rate.

However, to benefit from an honor loan, you need to belong to a network. Honor loans are generally granted by business creation/takeover networks, creator clubs, foundations or associations.

The amount of funding you receive depends largely on the network to which you belong and the project you are implementing. As a general rule, amounts range from 2,000 to 50,000 euros, but innovative projects can benefit from far greater funding.

Bank loans

There's no denying that the bank is an entrepreneur's most important partner. Given that your business needs at least one bank account to operate, there's no reason why you shouldn't find out about the loans your bank offers at the same time.

Banking institutions offer a wide range of assistance for entrepreneurs. For example, you can take out a special loan for auto-entrepreneurs. However, certain conditions must be met in order to benefit from this type of loan.

While they do offer financing, traditional banks are reluctant to lend money, especially if they have no guarantee of your creditworthiness. That's why this type of loan requires you to provide certain supporting documents.

However, this only applies if you decide to go through a traditional bank. These days, it's possible to borrow money from online lenders. Depending on your project, you can get a mini loan very quickly.

Participatory financing

Crowdfunding is a particularly popular form of financing because it minimizes the risks incurred by investors. Involving all interested parties makes raising funds quicker and easier, provided the project is clear and easily understood by everyone.

The other advantage of participatory financing is that it enables contributors to become ambassadors for your project. However, to avoid scams, it is advisable to turn to platforms specialized in setting up this type of financing.

The aim of these sites is to set up a structure enabling contributors to follow the project's progress, and to be reimbursed in the event that the venture is unsuccessful.

Competitions

Few people know it, but many competitions are regularly organized by private associations to finance relevant projects. Depending on the sector of activity, a wide range of financial assistance is available.

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