Loans for New Companies & StartUp
Start-up loans are special financing solutions that allow you to finance new business activities allowing you to take advantage of facilitated conditions. These economic incentives are granted in the form of a bank loan through calls made available by public bodies.
What are startups?
The Anglo-Saxon term “startup” refers to the condition of a company, new or already started, which lays the foundations for a new business activity. If the company is a newborn, it refers to the first stages of financing, essential moments in which everything is laid.
If the company has already started, it refers to the need for liquidity to start a new business project. In both cases the objective is the same: to be able to access financing to encourage the birth of a new business opportunity.
How do startup loans work?
Although Startup loans are a sort of external help required in the face of a lack of liquidity to finance a new idea, they still respond to the same characteristics as a common loan.
To access it, therefore, you need to present a series of typical requirements, such as:
- solid personal or real guarantees on movable or immovable property, in order to provide the correct security required by the credit institution;
- interest on the repayment installments.
In any case, startup loans are often combined with favorable terms compared to low and competitive rates or a pre-amortization period of 6 to 12 months to support the initial development phase or the growth of the company.
The types of startup loans
When starting a startup but you do not have the necessary liquidity, you can use the following options:
- Loans and state funds: at a national level, an important slice of funding for innovative start-ups is implemented with Smart & Start, while at regional level, the disbursement depends on the resolutions of the local administrations;
- Private financing: crowdfunding or social lending platforms can be used. In both cases, registration is free, there are no disbursements to be made, but the managers retain a sort of fee, as a percentage of the sums collected, when and if expected. These new types are called Business Loan and Venture Capital. The first is a wealthy person who invests funds in a new company, in exchange for bonds or equity. Consequently, if you rely on a business loan it is necessary to sell part of the startup shares and possibly accept the imposition of some strategic decisions. Venture capital is the contribution of venture capital by an investor to finance the startup or growth of a startup;
- Loans from banks: lenders reserve part of the loans that can be disbursed to the projects they deem most deserving. Specific requirements are required.
How to apply for startup loans?
Start-up funding is made available through public tenders launched by Municipalities, Regions, State Administrations and by the European Union.
The request occurs very often directly through the web portals of these institutions by correctly filling out the access request. The most sought-after and most sought-after formulas are the classic non -repayable loans, i.e. those that are disbursed for tangible and intangible investments and must not be returned.
Public funding is often aimed at specific categories of subjects who, more than others, have difficulty finding satisfying job offers. Think of the unemployed and unemployed for a long time, women, highly qualified graduates or people who offer businesses in innovative sectors.