- 04/03/2024

How will you finance your new business?

2 min

How do you raise start-up capital as a fledgling entrepreneur? Through your own resources or external funding? What support can you get from the government? We’ve drawn up a list of the various possibilities for you.

Raising start-up capital

It's advisable to assess the various possible sources of funding before you start. In this article, we discuss five of them: your own money, business loans, crowdfunding, bank loans for the self-employed, and finally, government subsidies for entrepreneurs.

Using your own funds

The simplest way to raise funds is to use your own savings. In fact, many entrepreneurs finance their project themselves, at least partially. This way, you maintain your independence and avoid having to repay money to others, which improves your company's profit potential.

However, it’s not wise to invest all your savings in your new business. We recommend using 20-40% of your own funds. That way, you limit the impact on your personal finances while demonstrating to potential investors that you’re fully committed to your project.

Raising funds from your loved ones to supplement your start-up capital

In entrepreneurial jargon, this source of funding is called the 3Fs (family, friends and fools). As an entrepreneur, you can turn to the people you know best for support. They might make a gift, which will directly strengthen your company's resources. Or they could give you a business loan, which can come with tax advantages depending on your region. Here are the various options:

• The win-win loan in Flanders
• The proxi loan in Brussels
• The coup de pouce loan in Wallonia

Raising capital through crowdfunding 

Through crowdfunding, you can raise start-up capital from the general public. There are four types of crowdfunding:

• Donation crowdfunding: people give you money out of conviction, and expect nothing in return.
• Reward crowdfunding: you offer contributors a non-financial reward in exchange for financial support. This can be a product or service.
• Crowdlending: people invest a certain amount in your company, and that amount will be repaid with interest.
• Equity crowdfunding: your start-up welcomes new shareholders.

Funding from your bank

With a self-employed bank loan, you get funding for you and your business*. To qualify, you’ll need enough of your own funds, assets that you need to finance and a good business plan. The interest and application fees relating to a bank loan are fully tax-deductible.

To learn more, make an appointment with one of our specialists..

Government subsidies

For a new business like yours, there are many ways to obtain subsidies to supplement your start-up capital. Applying for this support usually takes a lot of time, but it can make a difference when launching your project.

Public-sector support: our guide to subsidies 

Whether you start your business in Flanders, Brussels or Wallonia, there are many opportunities to obtain subsidies.

• For the Brussels-Capital region, visit the 1819brussels website. As well as an overview of the support available, the website also provides advice on the steps you need to take before applying for a subsidy. Also, visit the Innoviris website, which brings together all the information relating to support for innovative businesses in Brussels.
• In Wallonia, Midas is the main website for subsidies, funding and public-sector support for businesses and entrepreneurs.
• In Flanders, you’ll find all the necessary information on the Flanders Innovation and Entrepreneurship website (Vlaio.be). All types of support are clearly explained, and the website also includes many useful links.
• Finally, the European Union has created a number of funds to support ambitious European projects. The application procedures for funding depend on the country in which your business is established.

If you’d like help understanding the various options, just contact one of our BNP Paribas Fortis advisors for more information..

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*Lender: BNP Paribas Fortis SA, Montagne du Parc 3, 1000 Brussels – RPM Brussels – VAT BE0403.199.70
2. Subject to acceptance of your application. The information provided is for information purposes only and does not constitute an offer or promise of credit. It is provided with a view to further discussion.