Focus on the different types of financing for starting a business

Starting a business generates many costs, so it is essential to plan for starting capital. To cover your financial needs, you can rely on personal funds or external funding. Overview of the different options available to you to finance your business creation.

Personal contribution to the creation of a business

Why is it essential?

From a strictly legal point of view, it is possible to create a business without an initial contribution. But, whatever the nature of your activity, you will be led to incur costs to start of your project creation for:

  • the formalities administrative procedures for setting up a business,
  • the remuneration your advisers,
  • the filing of your trademark and your domain name,
  • the creation of a website

For some projects requiring large investments, a personal contribution is essential but may not be sufficient. In these specific cases, you will often need a external financing : partner, investor or even bank loan.

Be careful, you should know that no bank will agree to grant you a loan if you do not make a personal commitment (mortgage…). To can obtain bank financing, the minimum personal contribution percentage requested is:

  • from 25 to 30% global funding for a business creation;
  • from 20 to 25% of funding for a business takeover.

Are you an employee?

In the event of a business creation or takeover, if you have a company savings plan (PEE) or interentreprise (PEI), you can apply for and benefit from early release of your funds.

To do this, remember to request it from your employer.

How to constitute a personal contribution for the creation of a company?

To make a personal contribution, several solutions are available to you. It all depends on the legal status chosen.

  • For the creation of a sole proprietorship Where auto business, the entrepreneur puts his capital at the service of its activity professional. The company and its manager then become inseparable and there is no longer any distinction between the concepts of share capital and the current account of partners.
  • For the creation of a company, the entrepreneur may participate financially in the share capital or in the partner’s current account. His personal contributions are framed by very specific rules. Thus, in exchange for his contribution, the contributing partner obtains shares in the company.

???? To know

For the creation of a company, thecontribution to social capital, whether established in cash (money) or in kind (material good), is not intended to be recovered. In the case of a contribution to the partner’s current account, that is to say from an advance on cash, the contribution is repayable and liable to generate interest.

The bank loan

Very vigilant, banks take into account different criteria before granting or refusing a business start-up loan. Thus, several elements can be prohibitive for a loan:

  • a project too ambitious,
  • a unreliable financing plan,
  • a lack of experience project leaders,
  • a insufficient personal contribution,
  • a product and service unsuitable at the market.

But how do you get a bank loan to finance your creation project? To put the odds in your favor:

  • make sure you have a substantial personal contribution and present concrete, precise and reliable elements in your business plan ;
  • compare the offers different banks and bring competition into play to negotiate the best possible conditions for access to bank loans (TEG interest rate, repayment period, surety, etc.);
  • diversify your sources of funding, for example, by obtaining an honor loan or by creating a “banking pool” (a group of several banks formed to share the financing of a project) in addition to your own funds.

If your loan application is refused, do not be discouraged! Rather, see the opportunity for an additional phase of reflection, which will allow you to make the necessary forecast adjustments before making a new request.

Note ????

For any refusal, a bank must justify its choice and argue its decision: this is an opportunity for you to see what has blocked and find the appropriate solutions.

This refusal will also allow you to get closer to a support organization to review your funding and verify the viability of your project.

Additional solutions in the absence of personal contributions

Among the many steps to follow to start your business, you have to find additional funding to make up for the lack of personal funds. There are several possible solutions to finance your project.

Support for business recovery and creation (ARCE)

L’ARCE is a financial aid which is intended mainly for creators and buyers company compensated by Pôle Emploi. Through this system, the unemployed entrepreneur can request the payment in two installments of the remainder of his unemployment benefits. The goal ? Create a business without even benefiting from significant financial resources.

Honor loans

These types of loans allow project leaders toincrease their own funds to get to a bank loan without interest or guarantees.

These financial aids for business creation are allocated by organizations such as France Initiative and the Réseau Entreprendre. They are here granted to a person and not to a company. The principle is therefore that you commit “on the honor” to repay this loan.

Entry into investor capital

This external financing strategy helps strengthen your company’s equity and facilitates the possible solicitation of other external funders. Note that in return for his financial contribution, the investor receives company securities.


Thanks to crowdfunding platforms (KissKissBankBank, Ulule or even Tudigo), individuals can also participate in the financing of a business project.

Many solutions are available to you for financing your business creation. After this crucial step, you can move on to the legal part of the operations. Find out in detail what are the legal and administrative formalities to be completed for the effective declaration of your company.