How will you finance your new business?

It’s sensible to assess the various sources of financing before starting your business. Below, we assess five common options (own capital, business loan, crowdfunding, bank loan for self-employed people, and state aid). Finally, we take a detailed look at the various types of public subsidy available.

Financing your project with your own funds

The simplest way to raise funds is to use your savings. Many entrepreneurs finance their project with their own funds, at least in part. By doing so, you preserve your independence and you don’t have to make any repayments. This improves the potential profitability of your business.

However, it’s unwise to invest all your savings in your new business. We recommend investing 20% to 40% of your own funds. That way, you limit the impact on your personal finances while demonstrating to potential investors that you are fully committed to your project.

Familles et amis pour compléter votre capital de départ

In entrepreneurial jargon, this source is called the 3Fs (family, friends and fools). Many entrepreneurs turn to family members or friends to launch their project. Support can take the form of a gift that directly strengthens the company’s resources, or a loan. In the latter case, it qualifies as a business loan, which can bring tax benefits depending on the region. Here are the different variants:

• The Proxi loan in Brussels
• The “Coup de pouce” loan in Wallonia
• The Win-Win loan in Flanders

Ask the general public to contribute part of your capital

Through crowdfunding, you can ask the general public to contribute to your start-up capital. There are four types of crowdfunding:

• Donation crowdfunding: the public gives you money out of conviction and expects nothing in return.
• Reward crowdfunding: you offer non-financial rewards to people who contribute funding. This can be in the form of a product or service.
• Crowdlending: you must repay the amount invested by the public when the loan matures and pay interest.
• Equity crowdfunding: members of the public become shareholders in your start-up.

Funding from your bank

A bank loan for self-employed people is a form of business loan*. You will need to show sufficient equity, assets to finance and a good business plan to apply for a bank loan. Although interest rates have risen somewhat recently, they remain quite attractive for your business. Also, the interest and fees charged on a bank loan are fully tax-deductible.

Make an appointment with the Easy Starters Team

Subsidies: what state aid is available?

For a new business like yours, there are many ways of obtaining a subsidy to supplement your start-up capital. Applying for such aid is usually time-consuming, but it can make a difference when launching your project.

Subsidy guide

Whether you launch your business in Brussels, Wallonia, or Flanders, all three regions have set up their own aid mechanisms for entrepreneurs.

For the Brussels-Capital Region, visit the 1819.brussels website. Also, visit the Innoviris website, which is a comprehensive guide to sources of aid for innovative businesses in Brussels.

In Wallonia, Midas is the place to go for subsidies, financing and state aid for businesses and entrepreneurs.

In Flanders, you will find all the necessary information on the website of Flanders Innovation & Entrepreneurship (Vlaio.be). All possible sources of aid are clearly explained, and the site also includes many useful links.

Finally, the European Union has created many funds to support ambitious European projects. The application procedures for funding depend on the country in which your business is established. The list of intermediaries for Belgium is regularly updated.

Looking for someone to help you see things more clearly? Just contact BNP Paribas Fortis: our specialists will be happy to provide more information.

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