Starting a business: where to look for funding?

Published on : 26 November 20213 min reading time
When creating a business, you have to think about funding right away. It is one of the key drivers to reach the goals in the shortest time. Once the business plan has been drawn up, the team must think about the different types of aid available to bring the project to life. Indeed, the creation of a business is not limited to material investments.

The creator’s personal contribution

The family loan or personal contribution are the most popular forms of financing for business creation. This is the money you take out of your wallet to start your business. You can also ask a close friend or another family member who has the means to give you a loan.

Apart from being a good financial solution, it is also a way to show your values and qualities as a leader. You can demonstrate your experience and skills as an entrepreneur. This is also a very good point to include in the business plan you are drawing up.

Public support

If you do not have enough money to start your business, you can use public funding. This is very practical because the organisations that apply follow very specific rules. They tell you about them before you decide to start so that you can know well in advance of your application whether you are eligible for funding or not.

To benefit from it, you must check with the organisation the different files to be prepared. Funding for business creation of a public nature is more advantageous and is a real springboard for your activity. You can then apply for another type of funding.

Private aid

Private aid is very much in demand when setting up a business. For this, the bank loan is the most sought-after form of funding. Banks are private institutions that offer to finance the creation of a new business and to take advantage of it. However, there are other possible means of private support such as fundraising, business angels, etc. Indeed, it all depends on your project, on its solidity.

To obtain financial backing for the creation of a company, you will have to write your business plan well and demonstrate that your project is realistic and profitable. Private aid is a partnership relationship that you build with the creditor. This option also includes several protocols that must be followed to complete the contract. The level of funding depends both on the project itself and the personal contribution of the manager.

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