How to finance a business creation project?

Estimated read time 4 min read

Are you embarking on the creation of your business but do not know where to turn to finance your project? Family, banks, investors, financing organizations, etc. the possibilities are diverse. Are they, however, all in line with your project? Learn to identify your needs to target the right sources of financing without spreading yourself too thin.

The different sources of financing

Depending on the characteristics of your project, your ambition and your personal situation, the financing of your future business will result from the combination of several sources of financing: –

Creators often tend to underestimate their needs to limit debt. Don’t fall into this trap! Indeed, a good assessment of your needs will have the effect of:

Have you thought of everything?

To the starting cash which will be necessary to meet the first expenses ( starting BFR ): rents, insurance, commercial actions, purchase of supplies, travel expenses, salaries, social charges, electricity, etc. ?

or by economic activity. During the cruising period, if the company generates profits, part will be kept “in equity” to be used in particular to finance investments. It will therefore have less recourse to debt and will be more resilient in the face of economic difficulties.

On the day of creation, equity is made up of initial capital: personal savings of the creator(s), ARCE (financial assistance from Pôle Emploi), honorary loans, etc.

They will remain in the company, that is to say that you will recover them only in the event of transfer of your company or the titles of your company. They will allow you to:

finance what is not financed by the banking system and in particular the WCR (working capital requirement); and apply for a loan, because without equity it is very difficult to obtain a bank loan; as a general rule, to apply for a bank loan, own funds must represent approximately 30% of financial needs, except in special cases.

The entry of investors into the capital of your company (“fundraising”)

If your equity is insufficient to start your business project (or later to relaunch or develop it), you have the possibility of strengthening it by appealing to external private or public investors who will take a stake in the capital of your Company.

In business creation, the entry of investors into the capital makes it possible to supply the equity, to inflate the capital and thus to qualify for larger loans.


For business financing, you can contact banking networks or microcredit organizations. This will depend on the characteristics of your project and its ambition. Be aware that in the majority of cases, banks finance what is “sustainable” (investments) and start-up stock. They will be more reluctant to finance WCR.

Put all the chances on your side

In a classic way, a well-prepared, coherent project carried out by one or more motivated creators will have every chance of obtaining funding. Present to the funders you are requesting a complete, precise, clear and neat file… in a word “seller”! To do this, create an account on this site (it’s free) and access the ” My business plan ” application .

And above all, prepare for the interview with the help of an advisor. Also train yourself to “pitch” your project  and consult our section I plan to undertake to continue your reflection.

On the other hand, a project presenting an unbalanced financing plan and few convincing elements on its market will not present sufficient guarantees to seduce a banker. It is obvious !

What you need to know: organizations or local authorities offer counter-guarantees to banking establishments in exchange for their abandonment of the request for guarantee by the borrower. Some can even directly guarantee your loan.

So don’t hesitate to find out about existing guarantee schemes in advance : national and regional guarantee funds, mutual guarantee companies, etc.

Good news, there are also solutions to finance the development  of your business. Different methods of financing are possible depending on the state of progress of your activity. You can also finance the buyout .

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