As a business creator, you're bound to be concerned about the guarantees you need to obtain financing.
Many business owners are unable to obtain a loan due to a lack of collateral.
The current low-rate environment is encouraging new business creation, and easing the credit market.
However, this may not last in the long term, as evidenced by the recent announcements by the Governor of the FED. Fortunately, there are solutions to this problem.
The three main organizations from which these guarantees can be obtained are BPI France, France Active and les CCI.
Let's take a closer look at what these three organizations have to offer.
BPI France's Creation Guarantee can be used to finance the creation of a company, the acquisition of a business or a development project (launching a new activity, marketing a new product, etc.).
The Banque Publique d'Investissement (BPI) is a French organization dedicated to financing and developing businesses, with a particular focus on very small businesses.
Chaired by Caisse des Dépôts, it is not really a traditional bank.
To be eligible for the Garantie Création scheme, your SME must meet the following conditions:
- In existence for less than 3 years
- Less than 250 employees
- Less than 50 million euros in sales
- It must not be more than 25% owned by one or more entities that are not SMEs.
- Individual managers must take on debt on a personal basis, to contribute directly to the development of their company.
BPI France guarantees up to half of the borrowed funds, or 60% if the company is being set up.
In addition to this scheme, BPI France offers a range of interesting services and products to help entrepreneurs with their projects.
FranceActive's guarantee is particularly aimed at formerly unemployed entrepreneurs who do not necessarily have the personal financial resources to carry out their projects.
It's a supportive network that has been serving nearly 7,500 companies for over 30 years!
Their ambition is to accelerate the success of entrepreneurs by giving them the means to get involved.
To be eligible for the FranceActive guarantee, you must not be setting up an export or night-time business.
The loan must be for a minimum of two years.
FranceActive acts as guarantor for 65% of the sums borrowed, in return for a remuneration of 2% of the total amount of the loan and up to a limit of €45,000 (for start-ups or companies less than 3 years old).
The CCIs have developed several loan offers to help companies finance their projects. These include :
- The Réseau Entreprendre honor loan, interest-free and collateral-free, repayable over 5 years. It complements bank financing and increases the company's leverage, as well as being a sign of confidence in the eyes of other stakeholders. In general, a €10,000 grant from the Réseau Entreprendre leads to an average of €130,000 in financing from other players. Financing can be granted up to a maximum of €50,000.
- Numerous local platforms, specific to each region, can help you obtain financing or guarantees. To find out more, contact your local CCI.
- Finally, ADIE offers microcredit of up to €10,000 to finance all your needs. Honor loans of up to €4,000 interest-free can complete the financing of a project.
All of these schemes can be freely combined with ACRE(state aid offering total or partial exemption from social security contributions for the first year of business), ARCE or NACRE.
Each proposal is subject to specific conditions.
Before you embark on any major administrative procedures, check your eligibility for all the above schemes.
They provide invaluable assistance to business creators, with the aim of giving them the financial support they need to carry out their projects in the best possible conditions.
Written by our expert Paul LASBARRERES-CANDAU
March 26, 2019
