How to Finance the Creation of a Business?

Jan 18, 2024

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Personal Funds

If you have savings, especially from previous activities, these can be utilized for your business creation and serve as self-financing. It is recommended to use your own funds for certain expenses like administrative formalities, market research, or initial cash flow. This approach aims to reassure banks and demonstrate your commitment to entrepreneurship, without relying entirely on external financing.

Bank Financing for Business Start-up or Acquisition

Banks are often approached to finance initial expenses. Whether it's purchasing machinery to start production or funding equipment to open a retail outlet, a bank loan is often necessary. However, be cautious of the guarantees required by banks. They will cautiously evaluate creators who propose a serious and viable project. A realistic financial plan is therefore required to obtain credit.

Creation Support

Loans, Grants, and Subsidies There is a wide variety of contests organized publicly or privately for business creators and entrepreneurs. You can benefit from specific aids if your project is innovative or aligns with special interests (local commerce development, addressing social issues, etc.). Some subsidies may be received months after starting the activity, depending on criteria like the number of hires or investment amount.

Fundraising

Entrepreneurs can seek assistance from fundraising companies, which support project owners in exchange for future compensation in case of success.

How does fundraising work in practice?

During startup or strong growth phases, this involves taking a stake in your company from investors. You issue company shares sold to these investors. The money raised finances the business launch or expansion. The goal for these investors, whether they are business angels, venture capital funds, or seed funds, is to realize a profit in a relatively short term, usually within a maximum of 5 years. However, this financing solution requires bringing investors in as shareholders in your company, sometimes granting proportional rights.

Our Advice:

"As a project leader, what is the ideal financing solution for starting your business? What balance should you strike between personal contributions, financial aid, loans, or fundraising? Seek the help of an accountant to gain insight into the best financing solutions for your project. They will also have an overview of your business creation project in the short, medium, and long term (choosing a legal structure, business planning, business management, etc.).

© LucaPacioli - 2025 - All rights reserved

Luca Pacioli is a multidisciplinary, local firm that imagines and develops comprehensive and integrated solutions to support business leaders in their daily activities and throughout the life of their company, from inception to transfer. Traditional and digital accounting expertise, legal and social formalities, training, auditing, advice in business law, strategy, or wealth management, the diversity of our expertise allows us to support our clients in their daily management and future projects.

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© LucaPacioli - 2025 - All rights reserved

Luca Pacioli is a multidisciplinary, local firm that imagines and develops comprehensive and integrated solutions to support business leaders in their daily activities and throughout the life of their company, from inception to transfer. Traditional and digital accounting expertise, legal and social formalities, training, auditing, advice in business law, strategy, or wealth management, the diversity of our expertise allows us to support our clients in their daily management and future projects.

Background motif

© LucaPacioli - 2025 - All rights reserved

Luca Pacioli is a multidisciplinary, local firm that imagines and develops comprehensive and integrated solutions to support business leaders in their daily activities and throughout the life of their company, from inception to transfer. Traditional and digital accounting expertise, legal and social formalities, training, auditing, advice in business law, strategy, or wealth management, the diversity of our expertise allows us to support our clients in their daily management and future projects.

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