Dernière modification le 01/07/2022 à 15:28 par Kate Griss

INTANGIBLE CAPITAL VALUE

by Erwan COATNOAN DE KERDU

Your copilot in creating a successful company

Putting together a financing file: obtaining a business loan 

  by Erwan Coatnoan de Kerdu

Every year, many entrepreneurs and businesses seek financing to complete a project. How do you go about putting together a file and obtaining a business loan?

Every year, many entrepreneurs and businesses seek financing to complete a project. How do you go about putting together a file and obtaining a business loan?

Build a strong financing case 

In the creation of a company or the financing of a project, the file is a key piece to obtain financing. It serves to convince potential investors of the seriousness and skills of the entrepreneur. The organizations that issue financing expect a return on investment. The file must therefore help the entrepreneur to highlight his project and emphasize all its characteristics. 

Define the business model 

The financing file contains important information such as the company’s business model. It must therefore specify : 

  • Company activity;
  • The entrepreneur’s strategy; 
  • All the characteristics of the products or services that will be sold;
  • Target markets ; 
  • Target clientele; 
  • The state of the competition and the means that will be used to gain an advantage;
  • The method of distribution of the products. 

The form of the file 

The form in which this information is presented is also important. The interlocutors and potential investors must quickly understand the project. 

As a general rule, the file should take this form: 

  • An introduction to the business plan that forms the hook;
  • The curriculum vitae of the company’s players;
  • A description of the life of the company around its main actors (sales control, relations between partners, production management: the role of each);
  • Financial set-up of the project with a provisional income statement, a provisional balance sheet, details of the budget and cash flow. This aspect is essential: it shows the credibility of the entrepreneur and his team, but also of the project. It is necessary to remain realistic in the announced figures and to opt for relatively pessimistic assumptions. 

Where to turn for funding? 

The banks 

Banks are the first institutions that entrepreneurs turn to for financing. But it should not be forgotten that it is a commercial enterprise. It is therefore necessary to remain vigilant on the quality of the business plan that will be presented. Banks finance many projects, especially when they are clear. They may also agree to do so by sharing the risk with another investor. Obtaining public subsidies can also help banks to lend.

Business angels

Business angels are former entrepreneurs who have decided to invest in the projects of young companies and new entrepreneurs. They can be found in many different sectors and regions. Their support can be decisive since, in addition to providing capital to the company, they can also share their address books and experience. To request financing from business angels, it is possible to fill out a financing application and to approach the most appropriate network. 

Public aid 

A number of public aids can be used to finance a company. Aid for taking over or setting up a business and sectoral subsidies are two very often requested. The Chamber of Commerce and Industry can help the entrepreneur to find out about the aid to which he or she is entitled to create a business. Nevertheless, these aids are known not to intervene at the beginning of the activity. It is necessary to take it into account in the forecasts and to be able to function without it in order not to expose oneself to a risk. Obtaining this aid can also help in obtaining a bank loan. Combining these two methods of financing is quite possible. 

 

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