How to get business finance?
If you want to open a business or if you have a company in difficulty, surely you will have asked yourself how to find financing for companies. This is perhaps the most difficult part for entrepreneurs or prospective entrepreneurs, although fortunately to date there are different possibilities of access to credit, with products and facilities reserved just for micro, small and medium enterprises.
For certain types of companies, such as for example youth, female or innovative, there are also ad hoc facilities, which usually translate into the granting of non-repayable grants. This without forgetting of course the traditional Cross Hildare banks, but also alternative credit formulas, such as crowdfunding
We therefore see all the financing possibilities dedicated to companies, starting from the Cross Hildare to start a new business and then moving on to credit solutions for companies in difficulty.
Loans to newly established companies
Understanding how to find funds to open a business is the first step for anyone who wants to become an entrepreneur, but does not have the necessary basic capital. There are different possibilities to find the initial capital to open a business, starting from the grants dedicated to the promotion of self-employment.
For example, Invitalia, the national agency for the attraction of investments and business development, has announced a call for tenders dedicated to aspiring entrepreneurs, aimed at granting subsidized loans. However, due to the high number of requests received by the platform, applications are currently suspended.
For those who want to start a business, but do not have the necessary requirements to participate in the other specific calls we will see later, the most popular alternative is therefore the traditional Cross Hildares or those obtained through crowdfunding.
Financing for youth companies
If you are a young entrepreneur or aspiring person, you should know that there are credit facilities designed specifically for you, almost always in the form of non -repayable loans. In particular, to promote youth entrepreneurship tenders are periodically called to access non-repayable grants, always managed by Invitalia.
With the Zero Rate New Business program, for example, the Agency wants to offer an incentive to young people who want to start a micro or small business. The fund has an initial endowment of around 50 million euros, intended for the financing of business projects with a maximum expenditure of 1.5 million euros. The facilitation provides for the disbursement of a zero-rate loan to be repaid in maximum 8 years, which can cover up to 75% of total expenses. For those interested, starting from 13 January 2016 it is possible to apply online, directly through the Invitalia website.
Funding for women’s businesses
Special discounts are also available for female entrepreneurs. In particular, the Zero-Rate New Business program is still valid, which grants the same facilities described above for youth entrepreneurship to companies that are predominantly women.
Funding for innovative companies
Invitalia has provided ad hoc facilities also to encourage innovative start-ups that want to start or expand their business. The dedicated call is called Smart & Start and has an initial budget of about 200 million euros. The start-ups that operate in the digital economy and have a strong technological content, which intend to carry out projects with expected costs between 100 thousand and 1.5 million euros, can access it. In the presence of the requisites of merit necessary, the fund will therefore be able to support these projects by offering a zero-rate mortgage to cover a maximum of 70% of the total investment (which rises to 80% in the case of a company composed exclusively of women or young people under 35).
Loans to companies in difficulty
If your company does not have the necessary requirements to access subsidized loans for companies, you must know that there are still alternatives to obtain credit anyway.
The most traditional way is that of bank loans, with many credit institutions that have developed products designed specifically for the needs of SMEs.
Crowdfunding is another popular financing formula for companies: in essence there are platforms that allow companies to request Cross Hildare from a community of private investors, all without the intermediation of banks and financial institutions. The result is leaner procedures and very competitive interest rates.
Two other financing solutions for companies in crisis are the Cross Hildare through advances on invoices and debt factoring.
The Cross Hildares with advance on invoices consist in using their own commercial credits as a guarantee on the loan: whoever disburses the loan anticipates a sum equal to an agreed percentage of the value of the invoices issued and, as a guarantee, takes control of all the invoices outstanding.
The debt factoring is similar to the previous solution, but differs in the fact that the collection of the credits passes directly into the hands of the company that provided the loan to your company.