Financing the set-up of a business in France

Financing the set-up of a business in France

Unless you have enough cash to finance the set-up of your business in France, you must find the necessary capital, through borrowing or a capital increase. It might be easier for you to get the required initial funding in your previous country of residence.

Financing start up costs is never easy. The easiest way is often to ask for a personal revolving loan, without even mentioning the business project you have in mind…

However self-financing the set-up of business in France is not the only option.

French agencies supporting entrepreneurship

French government agencies can also help startups within the first months following their registration or grant SMEs governmental backing. As their goal is the spawning and nurturing of new businesses, necessary backing will be granted in priority to startups or company established in France which are considered as commercially and economically viable. French agencies can also grant your company a zero interest loan to start up your business.

Main types of loans dedicated to startups and SMEs in France are described below.

A loan dedicated to business start up in France : Prêt Création d’Entreprise (PCE)

Though mainly granted by the French agency Oseo, this start-up loan will directly be provided by a French bank. Set up process is relatively quick if you business plan has been properly established.

The Oseo loan amount ranges between €2,000€ to €7,000€. Banks must at least double this amount, but cannot exceed €45,000 in total. The overall loan benefits from a 70% guarantee from Oseo. It must be reimbursed with 4 to 5 years.

Interest rate is set according to market price.

Specific financing

For women entrepreneurs : the Fonds de Garantie à l’Initiaitve des Femmes (FGIF). Women entrepreneurs can request a 70% guarantee from this agency securing a business loan up to 38 000€. Its cost is limited (2.5% of the guaranteed amount). Selection process is thorough and based on the financial forecasts analysis.

Managing cash for your French business

Managing cash for your French business

It is quite hard to obtain a revolving loan or an overdraft facility in France to offset periods where working capital needs are high for your business established in France.

Thus managing your cash flow genuinely is strongly advised.

You should keep in mind that in France social charges and taxes must be paid on time, or you will be required to pay a 10 per cent penalty for a late payment by your French startup or SME. Getting customers to pay on time may also be challenging, though the law is regularly getting more stringent in order to encourage prompt payment of bills.

You can eventually charge a late payment fee and most vendors put a warning to this effect on their bills.

You may also get factoring loans or buy receivables insurance from French banks, where you pay a premium each month or quarter based on the evaluation of the ‘riskiness’ of your business – usually calculated as the balance outstanding for each of your customers and the assessment of the individual and overall risk of not being paid.

Reprendre une entreprise en SCOP : vers une simplification des procédures

Reprendre une entreprise en SCOP : vers une simplification des procédures

Benoît Hamon, ministre délégué à l’Economie sociale et solidaire, souhaite faciliter la reprise de PME par leurs salariés sous la forme d’une SCOP, en diminuant transitoirement la part de capital nécessaire aux employés pour y obtenir le pouvoir de décision.

Actuellement, pour bénéficier de la majorité des votes au sein de la PME, les salariés doivent détenir 50% du capital, ce qui est relativement important, au vu de la conjoncture (difficulté à obtenir des financements externes, risques encourus importants…).

Cette part de capital devrait être limitée à 30% pour les nouvelles Scop, constituées dans le cadre de la reprise d’une entreprise par ses salariés.

La Banque publique d’investissement (BPI) pourrait assurer le financement manquant pour assurer la finalisation de ces opérations de reprise de PME en SCOP.

Le montage d’une reprise d’entreprise en SCOP demeure néanmoins délicat et ils est fortement conseillé de recourir à un expert, dans le cadre de cette opération de rachat d’entreprise.

Création, cession, reprise d’entreprise : atelier sur la fiscalité

Création, cession, reprise d’entreprise : atelier sur la fiscalité

Pour les entrepreneurs en démarche de création, de cession ou de reprise d’entreprise, la CCI de l’Essonne organise une conférence dédiée à la nouvelle loi de finance 2013.

Vous saurez tout sur la fiscalité afférente aux opérations de création, transmission ou achat de PME.

Quand ? le 23 avril 2013
Où ? Evry
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